Leading global oilfield services provider Saipem has been selected to deliver a $900 million contract for the Bonga North deepwater oil and gas project, located 130 kilometres off the coast of Nigeria. The contract, awarded by Shell Nigeria Exploration and Production Company Limited (SNEPCo), includes management of the engineering, procurement, construction and installation (EPCI) activities for the project's subsea infrastructure.
Saipem is partnering two local companies, KOA Oil & Gas and AVEON Offshore, on the project. The overall contract, valued at around $1 billion, features strong Nigerian participation, with local design and manufacturing processes. This initiative includes the engagement of national suppliers and subcontractors, contributing to Nigeria's economic development.
The Bonga North project is characterised by its technically demanding environment, with water depths in excess of 1,000 metres. The infrastructure installed will include risers, flowlines, umbilicals and associated subsea structures, which will be connected to the Bonga Main FPSO (Floating Production Storage and Offloading), in operation since 2005. This FPSO, with a production capacity of 225,000 barrels of oil per day, reached a major milestone in 2023 with the production of its billionth barrel of crude oil.
Shell also plans to drill, complete and commission 16 wells for the project, eight for production and eight for water injection. In addition, modifications will be made to the existing Bonga Main FPSO unit, with the addition of new subsea connected equipment.
To support the efficiency and sustainability of the project, Akselos supplied a structural digital twin in 2020 for the Bonga Main FPSO. This system will enable structural performance to be monitored and optimised, ensuring smooth operations in a complex offshore environment.
Shell says the Bonga North project will generate a higher internal rate of return (IRR) than the company's average upstream operation. Initial production is expected by the end of the decade, with peak production estimated at 110,000 barrels of oil per day. The project is expected to generate substantial cash flow for Shell in the years ahead, underpinning the company's integrated oil and gas strategy.
With this project, Saipem and its local partners are confirming their commitment to innovation and sustainable development, while strengthening their presence in the fast-growing Nigerian market.
