Royal Dutch/Shell said on March 15th that it had awarded major contracts covering the development stage of the $2.4 billion Bonga oil field project, which is considered a key part of its investment strategy in Nigeria.
Shell, one of six multinationals working in Nigeria, is the operator of block OPL212 on behalf of state-owned Nigerian National Petroleum Corp. (NNPC).
The contracts include a floating production, storage and offloading vessel (FPSO), which will reportedly be one of the largest in the world. The two other contracts are for flowlines and for FPSO mooring and installation.
The Bonga deepwater oil field is expected to boost the West African state’s oil reserves by some 600 million barrels.
Shell, Nigeria’s biggest oil producer, is also part of a consortium that was awarded the coveted deepwater OPL250 block in December 2000 as part of an open bidding tender.
The Nigerian oil ministry has indicated that the periodic licensing of oil blocks will help the OPEC country boost its crude production from the current 2.2 million b/d to 3 million b/d by 2003 as well as to raise its oil reserves from 25 billion barrels to 30 billion barrels.
© 2001 Mena Report (www.menareport.com)