Nigeria’s oil exports are set to experience a significant downturn of 225,000 barrels per day in February due to scheduled maintenance on the Bonga Floating Production Storage and Offloading (FPSO) facility. This maintenance will also result in a drop in gas production by 150 million standard cubic feet per day.
Scheduled Maintenance Announcement
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) confirmed the maintenance in a statement released on Sunday. Gladys Afam-Anadu, the company’s Communications Manager, detailed that the turnaround is part of a statutory integrity assurance programme aimed at extending the operational lifespan of the facility.
SNEPCo’s Managing Director, Ronald Adams, asserted that the maintenance is essential for ensuring safe and efficient operations for another 15 years. “The scheduled maintenance is designed to mitigate unplanned deferments and enhance the asset’s overall resilience. We anticipate resuming operations in March upon completion of the turnaround,” he explained.
Scope of the Maintenance
The scope of the maintenance includes comprehensive inspections, certification, regulatory checks, integrity upgrades, engineering modifications, and subsea assurance activities. The Bonga FPSO, located approximately 120 kilometres offshore in over 1,000 metres of water, is capable of producing 225,000 barrels of oil daily and 150 million standard cubic feet of gas per day.
Mr Adams emphasised the critical importance of maintaining the facility for Nigeria’s production stability, energy security, and revenue objectives. He pointed out that the upcoming 2024 Final Investment Decision on the Bonga North project further underscores the necessity of the FPSO’s reliability.
“This turnaround will prepare the facility for additional volumes from the Bonga North subsea tie-back project,” he noted. The last maintenance on the FPSO occurred in October 2022, marking a significant operational milestone.
Historical Context and Future Plans
On February 1, 2023, the Bonga FPSO celebrated a major achievement by producing its one billionth barrel of oil since its operations commenced in 2005. SNEPCo operates the Bonga field alongside Esso and Nigerian Agip under a production sharing contract with NNPC Ltd.
This extensive maintenance initiative is not only crucial for the immediate operational integrity of the FPSO but also pivotal for sustaining Nigeria’s oil production capabilities in the long term. The decline in exports will impact the nation’s revenue streams, highlighting the delicate balance between necessary maintenance and economic stability.
Conclusion
As Nigeria prepares for this significant reduction in oil exports, the scheduled maintenance of the Bonga FPSO reinforces the importance of proactive measures in maintaining the integrity of critical national infrastructure. The anticipated return to full operational capacity in March is essential not only for restoring exports but also for bolstering the country’s energy security and economic health in the face of ongoing global oil market fluctuations.
With the Bonga FPSO’s maintenance underway, all eyes will be on SNEPCo’s efforts to ensure a seamless transition back to full production, underscoring the vital role this facility plays in Nigeria’s oil landscape. The commitment to maintaining such crucial assets reflects a strategic vision for the future of Nigeria’s energy sector, aiming to navigate both current challenges and future opportunities.
