Royal Dutch Shell and its partners will make the final investment decision on the development of Nigeria’s Bonga Southwest offshore oilfield next year, an official of the company said on Tuesday, according to a monitored report.
The project which is one of the country’s largest with an expected production of 180,000 barrels per day will generate profit at below $50 a barrel, Bayo Ojuli, managing director, Shell Nigeria Exploration and Production Company said.
The company is currently negotiating a production sharing contract with the Nigerian government which will determine the viability of the project, he said. The negotiations are expected to finish this year.
Shell Nigeria owns 55 percent of the license, ExxonMobil 20 percent, Nigerian AGIP 12.5 percent and Elf Petroleum Nigeria Limited 12.5 percent.
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The Bonga Field is an oilfield located in license block OPL 212 off the Nigerian coast, which was renamed OML 118 in February 2000. The field covering about 60 kilometer in an average water depth of 1,000 metres was discovered in 1996, with government approval for its development given in 2002. The field produces both petroleum and natural gas and contains approximately 6,000 mm barrels of oil.