Abuja - The Shell Petroleum Development Company has opened bids for the
construction of its $12 billion (N1.9 trillion) Floating Production
Storage and Offloading (FPSO) facility in Nigeria.
The facility, also known as Bonga South-West, lies 120km southwest of the
Niger Delta, in a water depth of over 1 000 metres.
Shell's General Manager, Deepwater, Jerry Jackson, who made the
announcement at the 2014 Offshore Technology Conference in Houston, Texas, said
that the Final Investments Decision on the field was expected before December,
Jackson said that the project, spanning OMLs 118 132 and 140, was underway with
significant Nigerian content levels.
“The tender process for the single-point moored facility which would be the
world's largest FPSO unit, is still currently out to tender with bidders, including
Samsung and Hyundai."
The Managing Director of SNEPCO, Chike Onyejekwe, said also that Shell had
recorded tremendous success in its Bonga Deep Water oil field, noting that as
at December 2012, it had exported about 450 million barrels of crude.
“The cost of the Bonga field development, including the cost of the Floating
Production Storage Offshore vessel built in 2004, came to $3.6bn (N569bn)
:Despite the fact that the drilling of the 19 oil wells will amount to
$12.35bn (N1.96tn), the bonga extension project, may gulp around $33bn
(N5.2tn),'' he stated.
The Commercial Manager of SNEPCO, Stefan Vas de Wael, said the development
of deep water assets in Nigeria's oil and gas sector could contribute $3bn
(N474bn) to the country’s economy and generate about 200,000 jobs annually.
Vas de Wael said the undeveloped deep-water assets could add over 600 000
barrels per day of oil, which would amount to doubling the current deep water
liquids from deep water fields in the country.
He said that over $5 billion (N790bn) would be required annually to develop and
produce five million barrels of oil per day.
“If all the deep water assets in Nigeria are developed, they could generate 200
000 plus jobs, $3bn in GDP and 600 000 barrels of oil per day.
“Developing 200 000 jobs is equivalent to growing the oil and gas industry by
30 percent. $3bn GDP will amount to an additional 15 percent of projected GDP
“The 600,000 barrels per day will amount to doubling current deep water liquids
production,'' he added.
For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page.