Oil: Shell, NNPC launch $ 10bn deep-water project in Nigeria

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The Nigerian National Petroleum Corporation (NNPC) and Shell Nigeria Exploration and Production Company (SNEPCo) have been invited to bid for a $ 10 billion deep-water project in the West African nation.

The prospective bidders are invited to submit their applications that include engineering, procurement, and construction of the Bonga South West / Aparao (BSWA) project.

The project is carried out by SNEPCo under contract production with the NNPC.

The Minister of State for Petroleum, Ibe Kachikwu, NNPC and its partners to start the process for the multi-billion deep-water project, which is expected to add 225,000 barrels of crude oil to Nigeria's daily production 2022.

The project includes the construction of a Floating Production, Storage and Offloading facility.

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., Ultra Deep Star Petroleum Ltd., Sasol Exploration and Production Nigeria Ltd. and Oil and Gas Nigeria Ltd.

The Nigerian National Petroleum Corporation (NNPC) would be more likely to accept technical assistance from Kaduna, Warri, and Port Harcourt, which has a collective processing capacity of 445,000 barrels per day (bd) , but have returned largely unproductive for years.

Despite the efforts of the Federal Government to diversify the economy from the oil sector, receipts from oil and gas sector still account for a huge chunk of the country's total exports' earnings.

The World Bank is expanding its West African economy 2.2 percent this year and the International Monetary Fund forecasts growth of 2 percent.

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