Shell Nigeria Shuts Down Bonga Field For Maintenance

Shell Nigeria Exploration and Production Company (SNEPCo) has made it known that it is shutting down the Bonga Field for maintenance. The Bonga floating, production, storage and offloading platform (FPSO) produces 225,ooo barrels per day. This implies that Nigeria’s total output would drop from 2.1million barrels per day to 1.8million barrels per day. Consequently, this indicates the Nigeria would lose N3.45billion per day.

Shell’s spokesperson, Bamidele Odugbesan, said “SNEPCo has commenced turnaround maintenance at Bonga, executing statutory activities that will ensure continuous optimum operations at the deepwater field which began producing in November 2005.”

“Production from the field was shut down on March 4, 2017, and is expected to resume at the conclusion of the exercise next month. This is the fourth turnaround maintenance since Bonga began production.”

In addition, the Managing Director SNEPCo, Bayo Ojulari, said: “The exercise will help ensure sustained production and reduced unscheduled production deferments. For the Bonga team, this is another opportunity to excel, having won the ‘Asset of the Year’ Award 2016 in the Shell Group, followed by runners-up in Norway and Malaysia. We are pleased that the award recognised the continuing collaboration towards optimum production with a focus on safety, cost and Nigerian content development which will be invaluable in the maintenance work.”
This is a positive development in terms of maintaining high standards in the industry. However, this is not a welcome news for Nigeria that is struggling with recession. This means loss of tax, royalties and levies for the government and revenue for Nigeria as a country. The government has to grant waivers for this downtime period.

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