$5bn Bonga North Deepwater Project Advances as Tenaris Completes Pipe Coating Work

–      Project proves world-class coating no longer needs trip abroad, says NUPRC

–      Lokpobiri: reforms restoring investor confidence as EPC firms return after exit

Shell’s $5 billion Bonga North deepwater development has recorded major progress with the completion of its pipe coating campaign at Onne, Rivers State, by the subcontractor, Tenaris.

The milestone positions Nigeria to unlock 110,000 barrels per day in new production from the subsea tie-back to the Bonga Main Floating Production, Storage and Offloading (FPSO).

The achievement was celebrated recently alongside the 25th anniversary of Tenaris in Nigeria and the inauguration of the upgraded five-layer thermal insulation plant by Pipe Coaters Nigeria Limited (PCNL), a subsidiary of Tenaris, an investment of $10 million.

THISDAY learnt the coating campaign, executed entirely in-country, involved coating of production lines with five-layer thermal insulation and water injection lines with three-layer polypropylene anti-corrosion systems to international standards, confirming Nigeria’s capacity to deliver complex deepwater infrastructure locally.

Speaking at the occasion, Bonga North Project Director, Ian Kellagher, representing the Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCo), Ronald Adams, said the completion had national implications beyond the project.

Kellagher described Bonga North as a subsea development tied back to the Bonga Main FPSO facility in 1,000 metres water depth, with recoverable reserves expected to deliver peak production of 110,000 bpd following Final Investment Decision (FID) in December 2024.

Shell expects first oil from the asset by end of the decade. Bonga North development holds estimated recoverable resource volumes of more than 300 million barrels of oil equivalent (boe).

The project is one of the mega deepwater projects on which the federal government and the industry are banking on to lift Nigeria’s oil production to 3 million barrels per day by 2030.

Kellagher said the successful coating in Onne means PCNL now possessed a world-class five-layer system able to compete for future deepwater projects globally, with partners working seamlessly to address technical, health, safety, environment and logistics challenges.

He said the development demonstrated that Nigeria had both the people and industrial capability to execute highest quality deepwater projects without exporting jobs and expenditure.

Managing Director of Tenaris Nigeria, Rosario Osobase, described the day as three milestones telling a single story of commitment, capability, and partnership.

Osobase said Tenaris was celebrating 25 years of growth, partnership, innovation, and shared success in Nigeria, moving from a service provider to a deepwater coating and insulation hub at Onne.

She said the inauguration of the thermal insulation plant reflected Tenaris’ confidence in Nigeria, while the Bonga North coating campaign demonstrated what world-class technology and local expertise could achieve when combined.

She stated that every milestone was made possible by employees past and present and by institutions championing local capability, adding that the new facility is an investment in people and long-term partnerships for the next generation of deepwater projects.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who inaugurated the plant, said government had changed the narrative from investment decline to recovery, with Engineering Procurement and Construction (EPC) companies returning and several projects coming on stream between 2023 and 2026.

Lokpobiri said priority will now be given to companies with proven in-country capacity and equipment, stressing that retention of petroleum expenditure, skilled jobs and technology transfer must drive project execution.

Executive Commissioner for Production and Development, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Enorense Armadasu, representing Commission Chief Executive, Oritsemeyiwa Eyesan, said Bonga North answered the question of whether Nigeria could deliver complex deepwater projects to global standards.

Armadasu said the project showcaseed partnership where SNEPCo and joint venture partners worked shoulder to shoulder with indigenous capacity, a model he said the commission was institutionalising under the Petroleum Industry Act (PIA) 2021 with over 15 high impact regulations.

He said several offshore projects, including Bonga SouthWest, Zabazaba, Bosi and Preowei, were expected to draw tens of billions of dollars by 2030, all requiring subsea infrastructure and facilities, like the Onne plant.

“The pipelines that will carry Bonga North production have been coated and qualified to international standards right here in Onne,” Armadasu said.

He added, “That is not merely a project milestone, it is a declaration of industrial capability.”

Armadasu stated, “This plant is not built for one campaign; it is built for a generation of them. Its presence tells every operator that world-class deepwater coating no longer requires a voyage abroad.

“To Tenaris, you have positioned yourself at the front of a decade-long queue of opportunity that will define Nigeria’s next deepwater chapter.” (Thisday)