Royal Dutch Shell and its partners will decide next year on whether to go ahead with the development of Nigeria’s Bonga Southwest offshore oil field, a senior company official said July 31.
The project, one of the country’s largest with an expected production of 180,000 barrels per day, will generate profit at below $50 per barrel, Bayo Ojuli, managing director of Shell Nigeria Exploration and Production Co., 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 Co. are partners.
California Governor Gavin Newsom also directed the California state oil and gas regulator to initiate a process that will halt the issuance of hydraulic fracturing permits by 2024.
Shell’s departure will mean the Miskar concession in southern city of Gabes will be handed back to the government, a senior official in the energy ministry says.
Shell said in a document to investors summarizing its climate strategy that about 75% of its proved oil and gas reserves will be produced by 2030.