Nigeria’s Oil Production Falls As Shell Shuts Down Bonga Oil Field
Shell Nigeria Exploration and Production Company Limited (SNEPCo) has announced the shutdown of its flagship facility, Bonga oil field, located in the Niger Delta area of Nigeria.
Bamidele Odugbesan, the company’s spokesperson in Nigeria, disclosed this in a statement stating that the shutdown was for maintenance of the oil field.
He said: “SNEPCo has commenced turnaround maintenance at Bonga, executing statutory activities that will ensure continuous optimum operations at the deepwater field which began producing in November 2005.
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With this development, Nigeria’s oil production that ramped up to 2.1million bpd has dipped to 1.875million bpd.
He also noted that the exercise will help ensure sustained production and reduced unscheduled production deferments.
“The turnaround maintenance involves inspections, re-certification, testing and repair of equipment as well as engineering upgrades with Nigerian companies and subsea professionals playing key roles.
The shutdown will result in shortfall of revenue to the Federal Government as the royalties, taxes and levies accruable to the government would be shelved within the period of the maintenance.
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Production from the field is expected to resume at the conclusion of the exercise next month, Odugbesan added.
The Bonga floating, production, storage and offloading (FPSO) vessel, has the capacity to produce 225,000 barrels of oil and 150 million standard cubic feet of gas per day, he stated.
Bonga is Nigeria’s first deepwater development in depths of more than 1,000 metres, and is located 120km offshore Nigeria.
The field is operated by Shell Nigeria who own 55% of the license. The other partners in the field development are Exxon (20%), Nigerian AGIP (12.5%) and Elf Petroleum Nigeria Limited (12.5%)
