Shell's billion-dollar gamble on Bonga North sparks outrage in Nigeria

Located off Nigeria's coast, the Bonga North deep-water project has been approved by Shell PLC's Nigerian subsidiary, SNEPCo. This significant project is designed to enhance the production capabilities of the existing Bonga Floating Production Storage and Offloading facility, where Shell holds a 55% interest. Bonga North aims to reach a peak output of 110,000 barrels of oil per day, contributing to the region's energy output, and will tap into estimated recoverable resources of over 300 million barrels of oil equivalent. The project will involve complex operations including drilling and completing 16 wells—eight for production and eight for water injection. Additionally, modifications to the Bonga Main FPSO will be carried out, alongside the installation of essential new subsea infrastructure. The field has already proven its importance, having achieved its one-billionth barrel of crude oil production in 2023 since starting production in 2005, with a previous capacity of 225,000 barrels per day. Shell is committed to maintaining stable liquid production through investments like the Bonga North project, in line with its strategic focus on high-potential regions. The decision reflects Shell's broader strategy to enhance performance through development models that are both replicable and efficient. This move is indicative of Shell's reliance on its technical expertise and the pursuit of nearby opportunities that present mutual benefits for the company and investors. Furthermore, investors interested in these developments can track Shell's stock actions through relevant Exchange-Traded Funds such as the Xtrackers RREEF Global Natural Resources ETF and the First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF. With an assertion made by Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, Shell aims to solidify its production in the region and reinforce its Upstream portfolio through these strategic investments.