In the News:
- Shell reopened a tender process at the Bonga South West-Aparo offshore oil project.
- The facility is designed for production capacity of about 150,000 bdp.
- The project had been on hold for nearly a decade.
British oil major, Shell Plc, has restarted preparatory activity on Nigeria’s long-delayed Bonga South West-Aparo offshore oil project by launching a new tender process for a floating production, storage, and offloading unit.
The tender was launched by the Anglo-Dutch energy major as part of early stage work on the project, located offshore Nigeria in deep waters.
Information reported by Upstream Online indicated that the FPSO unit under consideration would have production capacity of around 150,000 bdp.
The tender process does not amount to a final investment decision, which Shell has not announced at this stage.
Why the project stalled for decade
The company had estimated the overall development cost of the Bonga South West-Aparo project at about $12 billion.
The project is located in the OML 118 block, southwest of the producing Bonga Field, one of Nigeria’s largest deep offshore oil developments.
Despite its scale, the project has faced repeated delays since the mid-2010s due to a mix of commercial and market challenges.
These challenges included the global oil price downturn that began in 2014, shifting internal investment priorities, and prolonged contractual uncertainties.
As a result, the project remained on hold while Shell focused capital on other assets within its global portfolio.
The renewed activity comes at a time when Nigeria is seeking to lift crude oil production and stabilise revenues from its petroleum sector. Official data shows that the country has struggled to meet its production targets in recent years.
Data from the Nigerian Upstream Petroleum Regulatory Commission indicated that crude oil production averaged between 1.38 million and 1.53 million bdp in the first eleven months of 2025. This output level remains well below the government’s target of 2 million bdp.
Why shell is revisiting Bonga south west
Meanwhile, the reopening of the tender process signals Shell’s renewed focus on Nigeria’s deep offshore resources, which are often seen as more secure than onshore and shallow water assets.
Deep offshore fields are less exposed to pipeline vandalism and production shut ins that have affected onshore infrastructure in the Niger Delta.
For operators, this makes deepwater projects a more stable option for long term oil production.
In addition, Nigeria introduced petroleum sector reforms in recent years aimed at improving investment conditions and encouraging capital inflows.
These reforms form part of the broader context in which operators are reassessing previously delayed projects.
Deep offshore activity gains momentum
Shell’s move aligns with similar steps taken by other international oil companies operating in Nigeria’s deep offshore terrain.
In May 2025, ExxonMobil announced a $1.5 billion plan to revitalise its Nigerian deep offshore assets, including the Usan Field.
The regulators had expected a final investment decision on the ExxonMobil plan in the third quarter of 2025, although formal confirmation is still pending.
TotalEnergies has also expanded its deep offshore presence in Nigeria.
In September 2025, the French energy company signed a production sharing contract for two offshore blocks, PPL 2000 and PPL 2001. The deal added to TotalEnergies’ existing portfolio in Nigeria’s deep offshore segment.
