Nigerian National Petroleum Company News

Royal Dutch Shell and its partners will decide next year on whether to go ahead with the development of Nigeria's Bonga Southwest offshore oilfield, a senior company official said on Tuesday.The project, one of the country's largest with an expected production of 180,000 barrels per day, will generate profit at below $50 a barrel, Bayo Ojuli, managing director of Shell Nigeria Exploration and Production Company, told reporters.Shell is currently negotiating a production sharing contract with the Nigerian government which will determine the viability of the project, he said. The negotiations are expected to finish this year.Shell operates the project and ExxonMobil, Total , Eni and the Nigerian National Petroleum Company are partners.(Reporting by Ron Bousso; editing by Jason Neely)

Shell Nigeria Exploration and Production Company Ltd (SNEPCo) announced the start-up of production from the Bonga Phase 3 project. Bonga Phase 3 is an expansion of the Bonga Main development, with peak production expected to be some 50,000 barrels of oil equivalent, Shell said. This will be transported through existing pipelines to the Bonga floating production storage and offloading (FPSO) facility, which has the capacity to produce more than 200,000 barrels of oil and 150 million standard cubic feet of gas a day.

Genoil Inc. and Aquamation, Inc. announced that Genoil has commenced work on Aquamation’s Geregu and Abeokuta Gas Metering Plants in Nigeria. Both projects are underway for the Nigerian Gas Company (a wholly owned subsidiary of Nigerian National Petroleum Company) and on behalf of Zakhem Construction - Nigeria. Aquamation and Genoil will perform these projects under the previously announced Joint Operating Agreement between the companies.

DSME and the Nigerian National Petroleum Company (NNPC) have signed a Joint Venture Agreement to establish a world class shipping company. The shipping joint venture company will be called Nigeria Daewoo Shipping Ltd. (NIDAS). The scope of NIDAS will be local and international transportation of merchant goods, crude oil and petroleum products. The initial capital of NIDAS will be $10 million. The equity interests of DSME and NNPC in the shipping company will be 49% and 51% respectively. The joint venture will also have an offshore office which will be responsible for vessel operations and logistics. DSME has clear mid and long term goals and expects to fully participate in the oil and gas activities including the energy sector through its involvement in NIDAS.

Coflexip Stena Offshore International has been awarded through Single Buoy Moorings (SBM) a significant part of the mooring and installation package for Shell Nigeria Exploration & Production Company's (SNEPCO) Bonga field development. This field is located in OML* 118 some 120 km offshore Nigeria's Niger Delta South West coastline in 3,600 ft. (1,100 m) of water. The field is operated by SNEPCO (55%) on behalf of Nigerian National Petroleum Company in partnership with Esso Exploration and Production Company Nigeria Ltd (20%), Nigeria Agip Exploration Ltd (12.2%) and Elf Petroleum Nigeria Ltd (12.5%). CSO International's scope will cover project management, engineering, procurement, transportation and installation of three dynamic 19-in.