Anxiety, setback In Nigeria’s Oil Export, As Shell Shuts Bonga Terminal

The Bonga crude oil export terminal has been closed down for maintenance amid market uncertainty.
The terminal is operated by Nigeria’s oldest energy company, Shell Nigeria Exploration and Production Company (SNEPCO), in partnership with Total, Nigerian Agip Exploration Limited, Esso Exploration and Production Nigeria (Deep Water) Limited under a production sharing contract with NNPC.
Reuters had earlier reported Shell in a statement, saying the maintenance of Bonga floating production storage and offloading unit (FPSO) which started in May 21 is to help ensure sustained production and reduced unscheduled production deferments.
The terminal, according to the statement is expected to be shut for two weeks. ‘’The scope includes statutory recertification and critical asset integrity activities and the exercise would run until July during which there will be a few days of total shutdown’’ the statement said.

It was gathered that the maintenance is majored on Bonga floating, production, storage, offloading (FPSO) vessel, which is at the heart of Bonga operations. It has a production capacity of 225,000 barrels of oil and 150 million standard cubic feet of gas per day.
The Bonga crude oil export terminal was scheduled to load four cargoes in June or 127,000 barrels per day, an increase from the 123,000 barrel per day that was done in May.
Inspections, recertification, testing and repair of equipment, engineering upgrades with Nigerian companies and subsea professional playing major roles are expected part of the maintenance process.
With the persistence COVID19 induced crisis, analysts have made different speculations for the future of the oil market as prices and demand of the product have dived, but presently the market is expected to rebound with the lifting of lockdown and gradual reopening of global economies.
Although the oil company made it known in the statement that the routine maintenance will only last for few weeks, concerns has been expressed against the time frame being extended as it could threaten the nation’s overall daily output.
As the maintenance exercise is ongoing, Nigeria’s crude oil output as well as total bpd production could fall further.
Bonga is Nigeria’s first deep water development located 120km offshore Nigeria in depths of more than 1,000 metres. SNEPCO expanded the project with further drilling of wells in Bonga phases 2 and 3 and through a subsea tie-back that unlocked the nearby Bonga North West field in August 2014. Bonga Phase 3 achieved first oil October 2015.