TechnipFMC has been awarded a subsea contract by Shell Nigeria Exploration and Production (SNEPCo), a subsidiary of Shell, for the Bonga North development project located off the coast of Nigeria.
The contract involves the supply of TechnipFMC’s Subsea 2.0 production systems for the deep-water project. While TechnipFMC did not disclose the precise value of the contract, it stated that the agreement falls within the range of $250m to $500m.
The company confirmed that the award will be included in its inbound orders for the fourth quarter of 2024.
Under the terms of the contract, TechnipFMC will design and manufacture subsea tree systems, manifolds, jumpers, controls, and other related services.
The Subsea 2.0 platform is a configurable product suite that utilises standardised components within a modular architecture to adapt to specific project requirements. This approach simplifies project-specific demands and enables a “Configured-to-Order” (CTO) framework for customised product offerings.
The core components of the Subsea 2.0 platform include compact trees, compact manifolds, flexible jumpers, distribution systems, controls, and integrated connectors.
Earlier this week, SNEPCo announced the final investment decision (FID) for the Bonga North project, paving the way for the development of the deep-water field. The project will be executed as a subsea tie-back to the Shell-operated Bonga floating production storage and offloading (FPSO) facility, in which Shell holds a 55% interest.
The development will involve drilling, completing, and commissioning 16 wells, consisting of eight production and eight water injection wells. It will also include modifications to the existing Bonga FPSO and the installation of new subsea infrastructure linked to the FPSO.
The Bonga North project is expected to sustain production levels at the Bonga facility, which has an estimated recoverable resource of over 300 million barrels of oil equivalent (boe).
The development aims to achieve a peak production capacity of 110,000 barrels of oil per day, with the first oil output anticipated by the end of the decade. The resource volumes are classified as 2P (proven and probable) under the Society of Petroleum Engineers’ Petroleum Resources Management System.
SNEPCo operates the Bonga field with a 55% stake in partnership with Esso Exploration and Production Nigeria (20%), Nigerian Agip Exploration (12.5%), and TotalEnergies Exploration and Production Nigeria (12.5%), on behalf of Nigerian National Petroleum (NNPC).
Located in Oil Mining Lease (OML) 118, the Bonga field lies in water depths exceeding 1,000m.
Production at the Bonga FPSO began in 2005, with a daily capacity of 225,000 barrels of oil. The facility reached a significant milestone in 2023, producing its one-billionth barrel of crude oil.
