In a landmark development, Saipem, in collaboration with Nigerian firms AVEON Offshore and KOA Oil & Gas, has secured a $900 million offshore oil contract from Shell Nigeria Exploration and Production Company Limited (SNEPCo). This contract represents a major milestone for Nigeria’s Bonga North Project, the first deepwater oil venture in over a decade.
Located approximately 130 kilometers off the Nigerian coast, the Bonga North project aims to tap into a deepwater oil and gas reserve, with peak production expected to reach 110,000 barrels of oil per day.
Saipem will lead the Engineering, Procurement, Construction, and Installation (EPCI) of risers, flowlines, subsea umbilicals, and related subsea structures. Saipem emphasized its commitment to local content development, stating that design and fabrication activities will involve Nigerian suppliers and subcontractors.
“The project encompasses the Engineering, Procurement, Construction, and Installation (EPCI) of risers, flowlines, subsea umbilicals, and associated subsea structures. Design and fabrication activities will be carried out locally, also involving Nigerian suppliers and subcontractors,” Saipem noted.
President Bola Tinubu lauded the Final Investment Decision (FID) by Shell and its partners, calling it a “landmark development.” The President credited the success to his administration’s Renewed Hope Agenda, which focuses on attracting investments and revitalizing Nigeria’s oil and gas sector.
Bayo Onanuga, Special Adviser to the President on Information and Strategy, reinforced the administration’s commitment to creating an enabling environment for investors.
Key Highlights of the Bonga North Project
- Wells: The project includes the drilling and completion of 16 wells (eight production and eight water injection).
- Tie-Back Operations: These will connect to the Shell-operated Floating Production, Storage, and Offloading (FPSO) vessel in Oil Mining Lease (OML) 118.
- Peak Production: Expected to reach 110,000 barrels of oil per day.
Saipem, a global leader in engineering and construction, brings extensive expertise in delivering onshore and offshore energy projects, further cementing its role in advancing Nigeria’s energy ambitions.
This project not only strengthens Nigeria’s position in the global energy market but also underscores the nation’s growing focus on local content development and economic growth.
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