Nigerian Oil Producers Eye 25% Slice of Bonga North Project with Shell

Nigerian oil producers are negotiating with Shell to secure up to 25% of service contracts for the Bonga North project. This initiative is part of a broader effort to boost local industry participation in oil and gas projects, aligned with Nigeria's Local Content Development Act.

Nigerian oil producers are actively engaged in negotiations with Shell to claim up to 25% of the service contracts for the Bonga North deepwater project, according to industry insiders. The move underscores a strategic push to enhance local participation in significant oil and gas ventures.

Shell, which has committed to the Bonga North project to sustain output levels, sees the integration with its Floating Production Storage and Offloading (FPSO) facility as a core aspect of its investment strategy. The Nigerian government has pegged the project's valuation at $5.5 billion.

Industry leaders like Wole Ogunsanya, chairman of PETAN, are championing the cause of domestic firms, asserting their capability to handle major projects. This initiative aligns with Nigeria's Local Content Development Act, which aims to bolster local involvement in the energy sector, with a target of raising domestic participation to 70% by 2027.

(With inputs from agencies.)