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Tag: Bonga

  • Shell: Bonga oil production hits 800m barrels

    Crude oil production from the deepwater asset of the Shell Nigeria Exploration and Production Company (SNEPCo), Bonga field, has reached over 800 million barrels.

    Shell’s Media Relations Manager, Bamidele Odugbesan, in a statement, said the feat was achieved in 13 years of production from the field, adding that it confirms the oil giant as a pacesetter in offshore oil and gas production in the Gulf of Guinea.

    In its review of the performance of the Bonga Floating Production, Storage, and Offloading (FPSO) vessel for 2018, SNEPCo’s Managing Director, Bayo Ojulari, expressed satisfaction with the consistent availability and optimal performance of the vessel which began operation at the Bonga field in OML 118 in 2005. Its is under a production sharing contract with the Nigeria National Petroleum Corporation (NNPC).

    “We are relentless in our pursuit of excellence on all fronts, and this we have consistently demonstrated with the management of Bonga to the satisfaction of our government and co-venture partners,” Ojulari said in Lagos yesterday.

  • ‘Bonga produced 702m barrels’

    The Bonga oil field, operated by Shell Nigeria Exploration and Production Company (SNEPCo), has produced about 702 million barrels of oil since inauguration in 2005, its Managing Director, Bayo Ojulari, has said.

    Ojulari told reporters yesterday in Lagos that the oil field operated at more than 92 per cent availability last year. According to him, the volumes came from the Bonga main field and Bonga Phases 2 and 3 that unlocked the nearby Bonga North West field in August 2014. It has capacity for 65,000 barrels of oil equivalent per day (boepd).

    Speaking on the new lease of life of Bonga after a major turnaround maintenance which was completed in April, Ojulari said one of the highpoints of the turnaround was the engagement of about 65 indigenous contractors and subcontractor companies. Over 1000 people were involved, spread across worksites and vessels in the exercise described as the biggest in scope in the 12-year history of the asset.

  • Nigeria’s output to hit 2.1m bpd on Bonga

    Nigeria’s output to hit 2.1m bpd on Bonga

    Nigeria’s oil production is ramping up and will shortly reach its previous volume of 2.1 million barrels per day (bpd) before Shell’s deepwater facility, Bonga, was shut down for over a month for routine turn around maintenance (TAM), it was learnt.

    Shell’s Corporate Media Relations Manager Precious Okolobo confirmed that Bonga TAM has been completed and the facility has resumed operation.

    He said: “Shell Nigeria Exploration and Production Company Limited (SNEPCo) has completed the turnaround maintenance at Bonga, and resumed production at the offshore field. The activity commenced on March 4, 2017 and was completed on schedule, with the first well opened up on  April 8, 2017. Production is ramping up.

    “This is another milestone for the Bonga team,” said Bayo Ojulari, SNEPCo Managing Director. Having won the ‘Asset of the Year’ Award 2016 in the Shell Group, the Bonga team ably took up the challenge of achieving the three major components of the turnaround maintenance: statutory and regulatory safety checks, inspections, repairs and replacement of equipment and upgrades.”

    However, it was learnt that facility production is not at full capacity as it was before the TAM shut down. The output is being increased gradually as is the case after major turnaround maintenance.

    Also oil traders, according to Reuters, confirmed the development. The traders said they were still waiting for loading programmes from Bonga. “Nigerian cargoes for May loading are clearing and the market has found support on improved buying interest amid strong refinery margins, the traders said.

    “Nigeria’s Bonga oilfield resumed production after planned maintenance, but traders were still waiting for loading programmes. The bulk of the June loading schedule has been issued to the market, although programmes are yet to appear including Bonga, Erha and Yoho, the traders added.

    The 225,000 bpd Bonga field, operated by Shell Nigeria Exploration and Production Company Limited (SNEPCo), began producing in November 2005.

    “This is the fourth turnaround maintenance since Bonga began production,” said Bayo Ojulari, Managing Director SNEPCo when the shutdown of the facility was announced last month. “The exercise will help ensure sustained production and reduced unscheduled production deferments. For the Bonga team, this is another opportunity to excel, having won the ‘Asset of the Year’ Award 2016 in the Shell Group, followed by runners-up in Norway and Malaysia. We are pleased that the award recognised the continuing collaboration towards optimum production with a focus on safety, cost and Nigerian content development which will be invaluable in the maintenance work.”

    The turnaround maintenance involves inspections, recertification, testing and repair of equipment as well as engineering upgrades with Nigerian companies and subsea professional playing key roles. A major focus is the Bonga floating, production, storage and offloading (FPSO) vessel, which is at the heart of Bonga operations. The Bonga FPSO has the capacity to produce 225,000 barrels of oil and 150 million standard cubic feet of gas per day, he stated.

  • ‘Nigeria has capacity to produce 2.2m bopd without Bonga’

    Nigeria will be able to produce 2.2million barrels of oil per day (bopd), even with the shutdown of Shell’s 225,000 bopd Bonga oil field and Forcados terminal, industry stakeholders have said.

    The stakeholders, including the Chief Operating Officer, First Exploration and Petroleum Company, Dr Saka Matemilola, and the Chief Executive Officer, Abuja Power Station, Mr. Jameel Jammal, said with sustainable peace in the Niger Delta, oil production will go up rapidly.

    Matemilola said the country can produce 2.2million bopd, despite the fact that  its output has dropped to 1.875bopd from 2.1 million bopd, following the decision by Shell to shut down its Bonga field in order to carry out a maintenance check on the facility.

    He said once stakeholders including the Federal Government are able to guarantee peace in the region, the country would not have problem in increasing its oil production and exports.

    According to him, production disruption at Bonga cannot hinder Nigeria from increasing its oil output. He  added  that a sustained peace initiative in the Niger Delta, is what Nigeria needs to achieve growth in the petroleum sector.

    He said Shell decided to shut down the two facilities temporarily for strategic reasons, stressing that Nigeria has the capacity to increase its oil output considerably, whether Shell resumes activities in the two facilities or not.

    Matemilola said: “The problem in Bonga is short-termed, which means that solution can be proffered shortly by Shell. Had it been that the problems affecting the two facilities are major ones, I would have said that more time would be required to fix the problem.

    “It is not that Shell does not want to fix the Forcados facility. It is afraid that the facility may be bombed again. Considering the cost of repairing such a big facility, it does not make economic sense to fix it immediately it is attacked.’’

    Matemilola, who is also, the Chairman, Society of Petroleum Engineers of Nigeria (SPE-Nigeria), said Shell can complete the turnaround maintenance in the Bongo’s oil field within a short period. According to him, resumption of production activities in Bonga’s oil field would happen very soon in view of its contribution to the country’s oil output.

    Also, Jammal said a sustained peace initiative and a friendly operating environment is what Nigeria requires to produce 2.2million bopd or more in order to re-establish its position as the largest oil producer in Africa. He said the country can produce 3million bopd, provided the right environment is in place.

    “While it is regrettable that the country’s oil output has dropped to 1.875million bopd, following Shell’s decision to carry out turnaround operation on its Bonga field, Nigeria can make up for the loss and even surpass 2.2 million bopd without relying on production from Bonga, he said.

  • Bonga spill: Shell compensation not transparent, say communities

    Bonga spill: Shell compensation not transparent, say communities

    Some victims of the 2011 Bonga oil spill in the Niger Delta have accused Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Petroleum Development Company of Nigeria Limited (SPDC) of underhand practices in the payment of compensation.

    They said the oil firm sought to avoid its obligations by describing the spillage as a ‘mystery spill’ and afterward signed a General Memorandum of Understanding (GMoU) with unauthorised representatives of the 350 impacted communities.

    In a statement signed by six representatives of South Ijaw, Ekeremor and Brass Local Government Areas (LGA) they alleged that the firm convinced the unauthorised representatives that the compensation would be converted to infrastructure “with ten percentage of the infrastructure money to go to the GMoU members as administrative cost.”

    They warned that this could “incite the people against the Federal Government and/or intra-ethnic violence in the Niger Delta thereby undermining the national security.

    “Sometime in July 2016, Shell invited GMoU chairmen of 24 communities to sign nefarious agreements on behalf of the impacted communities, with a view that the Federal Government’s case at Abuja, will not succeed because the Federal Government is Shell’s principal with respect to the Bonga field.

    “Secondly, the Federal Government agent, National oil Spill Detection and Response Agency, (NOSDRA), through a scientific report said that the Bonga spill did not impact the shores. Thirdly, money paid into the federation account may not get to the communities.

    “We wish to inform the whole world that the GMoU chairmen/members are not invested with any authority to discuss land acquisition and/or oil spill compensation as well as convert compensation to infrastructure on behalf of impacted communities especially the 2011 Bonga Spill in any manner whatsoever.,” the statement said.

    It added that the Accredited Representative/Attorney “of all the shoreline communities remains Gbutse Property Limited and any negotiation without the presence and/or signature of their said Attorney shall be deemed null and void, and of no effects whatsoever.”

    The communities also warned that if the firm failed to follow the National Assembly’s recommendation of September 30, 2014 to commence negotiation with their Representative/Attorney, they would “definitely file a separate claim against Shell in any court of law.”

  • Fed Govt’s suit against Shell for Bonga spill commendable, says ERA

    The Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) has commended the federal government for dragging Shell Nigeria Exploration and Production Company before a Federal High Court sitting in Abuja, claiming N1.3 trillion against the oil firm for the December 20, 2011, Bonga oil spills.

    The spill which caused massive pollution in coastal communities in Delta and Bayelsa states occurred in Shell’s Bonga Field located about 120 kilometres off the Nigerian coastline.   The project itself was linked to a scam involving Vetco International Limited whose officials were discovered to have paid $2.1 million bribe to Nigerian officials to undercut customs regulations, following which a US court fined Vetco International $26 million fine for violating the U.S Foreign Corrupt Practices Act. The bribes were paid between September 2002 and April 2005 when Vetco International was providing engineering and procurement services and subsea construction equipment for the Bonga project

    The suit is protecting the interest of fishermen and persons, numbering about 285,000 from 350 communities and satellite villages, affected by the crude oil spillage. The government is demanding N884 billion as compensation for the impacted communities and another N495 billion as restitution and restoration of the devastation of the economic zone of the Nigeria’s territorial waters. It is also asking for N50 million as cost of the legal action.

    Co-defendants in suit are Shell Petroleum N.V, B.V Netherlands International Indusrie-E Handel Maatschappij, Shell Transport and Trading Company Plc, and Royal Dutch Shell Plc, who are all allied companies of Shell Nigeria Exploration and Production Company. In an affidavit sworn to by a Deputy Director, Oil Field Assessment Department of National Oil Spill Detection and Response Agency (NOSDRA), Mr. Akindele Olubunmi in the suit, counsel to the plaintiffs, Awosika Adekunle, averred that he had the consent and the authority of President Muhammadu Buhari, Mr. A. Mallam (SAN), Attorney General of the Federation and Director General of NOSDRA, to depose to this affidavit.

    In a statement issued in Lagos, ERA/FoEN Executive Director, Godwin Ojo said: “This is cheery news no doubt. The days of impunity by Shell in Nigeria is nearing its end. The Nigerian government has by this decision taken a giant leap in siding with the people against a corporate bully. It is commendable”

    Ojo explained that it was however sad that the road to justice for the impacted communities is only coming now, more than five years after their lives and livelihoods were rudely obfuscated even as he noted that justice cannot be denied ultimately.

    “The Buhari administration has shown the way. If British Petroleum (BP) was made to pay for the Gulf of Mexico spill in …why Should Shell not pay double for its shameful impunity all these years? Nigeria’s sovereignty over oil companies cannot be compromised. Corporate capture of the state and resources has led to untold hardships for the local fishermen who were stopped from fishing while the spill wreaked havoc on marine life and fishing in the Nigeria’s coastal communities”.

    “ERA/FoEN pledges to support the case and provide technical support that will ensure justice is done. We want to add that however that while environmental remediation is important, compensation for the impoverished fisher men and women was not mentioned in the suit and this should immediately be a part of the suit. The time of Shell’s impunity is over”, Ojo insisted.

  • Shell begins operations in Bonga Northwest

    Shell begins operations in Bonga Northwest

    Oil major, Royal Dutch Shell said it has started the third phase of operations in Nigeria.

    The firm said its exploration and production company started production at the third phase of the offshore Bonga prospect.

    “This new start-up is another important milestone for Bonga, adding valuable new production to this major facility,” upstream director Andrew Brown said in a statement.

    Shell last year started oil production from the deepwater Bonga Northwest development off the coast of Nigeria. At its peak, the company said the third phase of operations in the country should be around 50,000 barrels of oil equivalent.

    Nigeria is a member of the Organisation of Petroleum Exporting Countries (OPEC). In August, Nigeria produced about 1.86 million barrels of oil per day (bpd), about four per cent higher than the previous month, according to OPEC.

    Reserves taken from the third phase of the Bonga prospect will be fed through existing production infrastructure offshore, which can produce more than 200,000 barrels of oil and 150 million cubic feet of natural gas per day at full capacity.

    The entire Bonga prospect started oil and gas production in 2005 and was Nigeria’s first  deep water project. To date, the full project has produced more than 600 million barrels of oil.

    “The country’s deepwater resources are making an important contribution to meeting growing energy demand in Nigeria and around the world,” Managing Director, Shell’s Regional Exploration subsidiary, Tony Attah, said in a statement.

    Royal Dutch Shell Plc expanded oil production off Nigeria’s coast by starting the third phase of its Bonga field.

    That phase has a peak production capacity of about 50,000 barrels of oil equivalent, Shell said yesterday in an e-mailed statement. The floating production and storage facility serving Bonga’s third phase has a capacity of more than 200,000 barrels of oil and 150 million standard cubic feet of natural gas a day.

    Shell has a 55 per cent stake in Bonga and operates what it says were the first deposits to be developed in Nigeria’s deep waters in 2005. Exxon Mobil Corp. holds 20 per cent, while units of Total SA and Agip, a subsidiary of Italy’s Eni SpA, each own 12.5 per cent.

    Shell has pushed on with projects close to production, such as Bonga Phase 3, even as a slump in crude prices forced it to join other producers in deferring more risky exploration. Europe’s biggest oil company is cutting 6,500 jobs this year and plans to lower spending by $7 billion.

    It abandoned an exploration program in Alaska last month after drilling a well that didn’t lead to sizeable oil and gas reserves.

    In July, Shell decided to go ahead with the Appomattox project in the Gulf of Mexico after cost cuts reduced the break-even price for the project to $55 a barrel. Benchmark Brent crude climbed as much as 1.7 percent to $48.95 a barrel on the London-based ICE Futures Europe exchange on Monday, after dropping 47 percent in the past year.

  • Shell’s Bonga Northwest production hits 60,000bopd

    Shell’s Bonga Northwest production hits 60,000bopd

    In its first anniversary, Bonga Northwest, operated by Shell Nigeria Exploration and Production Company Limited (SNEPCo), has returned a good report card: It reached daily production of 60,000 barrels of oil.

    An excited General Manager, Deepwater Projects, Jerry Jackson, said this was a product of teamwork, adding that the production was a milestone for Bonga Northwest.

    Shell’s Deepwater Project and Technology team officials handed over the Bonga Northwest assets to the Offshore Asset team in March in Lagos.

    On the accomplishment, Jackson said: “Bonga Northwest demonstrates what can be achieved when people work together effectively. Every single team collaborated to enable the SNEPCo organisation deliver on this project in a very challenging environment. Bonga Northwest is showcased by the Shell Production Academy as a ‘Best-in-Class’ project in terms of execution.”

    According to the latest Shell World, a Shell Company’s publication, “Bonga Northwest is a six-well tied in to the main Bonga Floating Production, Storage and Offloading (FPSO) vessel. It produced its first oil on August 5, last year, and all the six wells have been hooked up and are producing an average of 50,000 – 60,000 barrels  daily.

    “In addition to being executed successfully, safely and within budget, Bonga Northwest also met its primary objectives.”

    Jackson also said the team executed the projects that resulted in the huge success because they wanted to fill the tank. He noted that some projects were successful, after some months, they are not able to fill the tanks for various reasons so that at the end of the day, one really doesn’t have a ‘successful’ project.

    Stressing the team spirit shared by the Deepwater Project and Technology team, and other colleagues from Well Engineering and Development, the former Bonga Northwest Project Manager, Joey Uyanwune said: “We had an integrated team. We worked together with a common purpose and focus to deliver this project.’’

    The Head, Deepwater Projects Operations Readiness/Excellence, Obinna Mbonu, said: “Not all projects achieved this milestone and in record time like Bonga Northwest project has done. It is a demonstration of due diligence and excellent collaboration by both teams.”

    The Bonga General Manager, Offshore Assets, Effy Okon and Operations Manager, Theo Ekiyor-Etimi, said the teams learnt many lessons, adding that they expected those learnings to be replicated in future projects.

    The Bonga project is located in oil mining lease (OML) 118 and about 75 miles offshore Nigeria. It is the country’s first deepwater development asset and in water depths of over 1,000 metres.

    It started production in 2005.  So far, it has produced over 500 million barrels of oil.

  • NGO issues 14-day ultimatum over Bonga oil spill

    A non-governmental organisation (NGO), Oil Spill Victims Vanguard (OSPIVV), has threatened to shut down all facilities belonging to Shell Nigeria Exploration Production Company (SNEPCO), if it fails to pay within 14 days a fine of $3,600,191,206 to victims of the 2011 Bonga oil spill.

    In a letter by its Executive Director, Harrison Jalla, the NGO stressed that after investigations, the Federal Government, on December 19, 2014 levied $3,600,191,206 on the company, with a 14-day ultimatum to pay the victims in about 350 communities along the Atlantic Ocean’s coastline in Delta and Bayelsa states.

    An oil spill occurred at SNEPCO’s Bonga Oil Field on December 20, 2011, where 40,000 barrels of crude oil spilled into the Atlantic Ocean, following the alleged failure of the company’s equipment when it was loading.

    The letter said the spill covered 185 kilometres along the coast of Ekeremo, Southern Ijaw and Brass local government areas of Bayelsa State and Warri Southwest, Warri North and Burutu local government areas of Delta State.

    It polluted farmlands, vegetation, contaminated environments and forced fishermen out of business.

  • Bonga project’ll enhance exploration, say oil chiefs

    Exploration will be enhanced, if Shell Petroleum Development Corporation (SPDC) fulfils its promise to get Bonga South West Project ready this year, stakeholders have said.

    The Chief Executive officer, ARCON Petroleum Limited, Doyin Adeyinka, the Marketing Director, Olive Crest Resources Service Limited, Dr Alex Orewa, and Vice President, Nigeria-Gabon Shell Upstream International, Markus Droll, said the project would provide opportunities to the industry and the economy.

    Adeyinka described the Bonga South West Project as a world-class facility, capable of boosting exploration. He said the project is an extension of Shell’s exploration activities, adding that completing it this year would help in increasing deep offshore programmes.

    He said: ‘’Though I do not know the quality of the project, it is bound to galvanise exploration and production initiatives in the industry in general, and the economy in particular. Bonga project itself is a big one, and can be extended to any area provided there is oil there to improve activities at the deep-side level of petroleum exploration. ‘’

    Orewa said the International Oil Companies (IOCs) are still interested in investing in Nigeria, as evident by the decision of Shell to expand its Bonga oil project.

    IOCs, Orewa said, were only divesting from on-shore projects and not deep off-shore activities where they hope to maximally improve their fortunes.

    He said: “By completing Bonga Southwest Project by 2014 end, Shell would have more access to export its product. This would depend on whether the product is for export, or not. This is a demonstration of the fact that Shell wants to continue to invest in Nigeria, despite the challenges facing the industry.

    ‘’ The oil majors are not yet done with Nigeria in terms of exploring investmentopportunities, galvanising them to expand the production base and other indices that would spur growth. They want the Petroleum Industry Bill (PIB) to be passed to know the next line of action. PIB will help them in knowing the rules of the game and how best they can apply the rules for growth. Through BIP, the foreign-owned oil firms would know what and how to meet the needs of the oil producing communities and other issues.’’

    Droll said the company will continue drilling projects on the Original Bonga FPSO, adding that Bonga South West Project is a new addition. Droll said the initiative would generate returns for the partners and the government in the long run.

    He said the Bonga initiative is of immense value to the company, industry and the country, arguing the firm ‘s desire to contribute to oil exploration in countries where it has major presence.