The Minister of State for Petroleum, Dr. Ibe Kachikwu, has directed the Nigerian National Petroleum Corporation (NNPC) and Shell Nigeria Exploration and Production Company (SNEPCo) to commence today the tendering process for the execution of the $10 billion Bonga South West/Aparo (BSWA) deepwater project.
The minister’s directive followed the April 17, 2018 meeting between President Muhammadu Buhari and a delegation from Royal Dutch Shell Plc., led by the Chief Executive Officer, Bern Van Beurden, in London.
At the meeting which was also attended by the Corporation’s Group Managing Director of the NNPC, Dr. Maikanti Baru, it was decided that SNEPCo and the state-owned oil entity would begin the implementation of projects that had been on the drawing board for several years.
Following the meeting, Kachikwu directed the NNPC to conclude all the processes leading to the execution of the Bonga South West project latest by Monday, June 18.
A news report indicated that the Minister of Petroleum Resources, through a letter with reference number HMS/MPR/027/Vol.1/096, dated May 9, 2018 addressed to Baru, stated that the directive was in line with the decisions taken at the London meeting.
The letter reads in part: “Please recall the meeting held between His Excellency, Mr. President and Royal Dutch Shell on April 17, 2018 in London, on important matters, including the Bonga South West project. In furtherance to the meeting, NNPC is required to urgently conclude all processes leading to the execution of the Bonga South West project by June 18, 2018.”
Following the minister’s directives, it was gathered that the NNPC, through its investment arm, the National Petroleum Investment Management Services (NAPIMS), had also approved the Invitation to Tender (ITT) documents prepared by SNEPCo for the six components of the project.
In another letter with reference number NAP/GGM/02.13 dated June 6, 2018 and signed on behalf of the NNPC by the Group General Manager (GGM) in charge of NAPIMS, Mr. Roland Ewubare, the NNPC also ommunicated its approval to SNEPCo, stating that “all necessary updates to ITT documents through the tendering stage will require NAPIMS’ approval.”
Buhari and the Shell executives were said to have discussed the Bonga offshore oil field development and the expansion of liquefied natural gas projects.
The Bonga South West/Aparo project, estimated to cost about $10 billion and delayed for several years, is being executed by SNEPCo under a Production Sharing Contract (PSC) arrangement with the NNPC.
First oil from the project, which is expected to be about 225,000 barrels per day to Nigeria’s daily production, is expected either in 2021 or 2022.
The BSWA project, which covers Oil Mining Leases (OMLs) 118, 132 and 140, includes the construction of a new Floating Production, Storage and Offloading (FPSO) facility with an expected peak production of 225,000 barrels of oil per day.
The bulk of BSWA resources are located in OML 118 but it also extends into OMLs 132 and 140, operated by Chevron, where it is called Aparo.
Other oil companies involved in the BSWA project include, Total E&P Nigeria Ltd., Nigerian Agip Exploration Ltd., Texaco Nigeria Outer Shelf Ltd., Esso Exploration & Production Nigeria (Deepwater) Ltd., Star Ultra Deep Petroleum Ltd., Sasol Exploration and Production Nigeria Ltd. and Oil and Gas Nigeria Ltd.
