Shell, NNPC invite bidders for $10bn Bonga South West Project
The Nigerian National Petroleum Corporation (NNPC) and Shell Nigeria Exploration and Production Company (SNEPCo) have invited prospective bidders to tender for the $10 billion Bonga South West/Aparao (BSWA) deepwater project, following direction from the Minister of State for Petroleum Resources in June.
The BSWA invitation to tender requests that Nigerian and international companies on the approved bid list bid for the various contract packages that comprise engineering, procurement, and construction of the BSWA project. Estimated to cost about $10 billion, the project is being carried out by SNEPCo under a production sharing contract arrangement with the NNPC.
The invitation comes seven months after the instruction by the Minister of State for Petroleum, Dr. Ibe Kachikwu, to Shell and the NNPC to commence the tendering process for the execution of the multi-billion deepwater project. The project is projected to carry a peak production of 225,000 barrels of crude oil per day by 2022, and includes the construction of a new Floating Production, Storage and Offloading facility.
SNEPCo and the NNPC have come to an agreement on key commercial terms, including agreements related to production sharing contract interpretation disputes.
SNEPCo is the operator of the BSWA project in line with the agreement between the NNPC, Esso Exploration & Production Nigeria (Deepwater) Ltd., Total E&P Nigeria Ltd., Nigerian Agip Exploration Ltd., Texaco Nigeria Outer Shelf Ltd., Star Ultra Deep Petroleum Ltd., Sasol Exploration and Production Nigeria Ltd. and Oil and Gas Nigeria Ltd.