Global energy services company TechnipFMC has been awarded a significant contract to supply subsea production systems for Shell’s Bonga North development offshore Nigeria. This deal reinforces TechnipFMC’s role as a key player in subsea technology and highlights the continued investment in Nigeria’s deepwater oil and gas sector.
Contract Scope and Deliverables
Under the contract, TechnipFMC will be responsible for the engineering, procurement, construction, and delivery of critical subsea production components, including:
- Subsea Trees – Advanced deepwater subsea trees designed to control oil and gas production from Bonga North’s new wells. These systems are vital for regulating flow rates, pressure, and ensuring the safe extraction of hydrocarbons from the seabed.
- Manifolds and Controls – Integrated subsea manifolds that will collect and route hydrocarbons from multiple wells, ensuring efficient production. These components play a crucial role in optimizing field performance by reducing pressure drops and enhancing fluid management.
- Flexible Jumpers and Flowlines – Infrastructure that connects subsea wells to the existing Bonga Floating Production Storage and Offloading (FPSO) unit. These flexible pipelines allow for the safe and efficient transfer of crude oil and gas, minimizing downtime and maximizing output.
- Umbilicals – Hydraulic and electrical conduits that will power and control subsea equipment from the surface. These umbilicals are essential for communication between the surface facilities and the subsea infrastructure, enabling remote operation and real-time monitoring of production activities.
TechnipFMC’s extensive experience in deepwater solutions and its proven track record in Nigeria’s offshore developments played a crucial role in securing this contract. The company will leverage its global manufacturing facilities alongside local Nigerian partners to ensure compliance with the country’s local content regulations.
Strategic Importance of Bonga North
The Bonga North project, operated by Shell Nigeria Exploration and Production Company (SNEPCo), is a key extension of the Bonga deepwater field located in Oil Mining Lease (OML) 118. The development aims to sustain and enhance Nigeria’s offshore oil production, with an estimated production increase of approximately 120,000 barrels per day upon completion.
This project aligns with Nigeria’s long-term strategy to optimize deepwater oil resources, ensuring economic growth and energy security while supporting local industry participation. The expansion of Bonga North is expected to extend the field’s operational life by several years, ensuring that Nigeria continues to benefit from its deepwater reserves.
The development is also expected to improve Nigeria’s crude oil export potential, supporting the country’s efforts to meet its OPEC production quota while attracting further foreign investments in the offshore sector.
TechnipFMC’s Role in Nigerian Offshore Development
TechnipFMC has been a long-standing partner in Nigeria’s oil and gas sector, contributing to major projects such as Egina, Zabazaba, and Akpo. Its integrated engineering solutions, including its Subsea 2.0 production system, are expected to optimize costs, improve project timelines, and enhance operational efficiency.
The company’s involvement in Bonga North is expected to introduce innovative subsea technologies that will reduce installation time and improve overall field performance. With its global expertise and state-of-the-art manufacturing facilities, TechnipFMC is well-positioned to deliver high-quality solutions for Nigeria’s deepwater sector.
Doug Pferdehirt, Chairman and CEO of TechnipFMC, commented:
“We are honored to support Shell’s Bonga North development with our advanced subsea technology. This project further strengthens our commitment to providing innovative and cost-efficient solutions that drive offshore production growth in Nigeria.”
The contract award reinforces TechnipFMC’s position as a trusted partner in West Africa’s offshore industry, where it has consistently delivered high-quality engineering solutions for deepwater oil and gas developments.
Local Content and Economic Impact
As part of Nigeria’s drive to increase indigenous participation in the oil and gas industry, TechnipFMC will collaborate with local suppliers and service providers. The company is expected to utilize Nigerian fabrication yards for the assembly of certain subsea components, fostering skills transfer and job creation.
The Nigerian Oil and Gas Industry Content Development (NOGICD) Act mandates that international firms operating in the country incorporate local expertise and infrastructure into their operations. TechnipFMC’s commitment to local content development aligns with these regulations and is expected to generate hundreds of direct and indirect jobs in the country.
Furthermore, the use of local suppliers will strengthen Nigeria’s domestic oilfield services sector, enhancing the country’s capacity to support future deepwater projects. This collaboration will also contribute to the growth of Nigerian engineering expertise, enabling the local workforce to gain valuable experience in advanced subsea technologies.
The contract also represents a broader trend of investment in Nigeria’s deepwater sector, attracting international expertise while ensuring that local companies benefit from large-scale projects. The government and industry stakeholders view the Bonga North project as a model for future offshore developments in the country.
Project Execution Timeline
- Engineering and Manufacturing Phase – TechnipFMC will commence engineering and procurement activities immediately, with key components being manufactured across its global and local facilities. This phase will involve detailed design work, ensuring that the subsea production systems meet the highest industry standards.
- Installation and Commissioning – The subsea production systems are expected to be deployed offshore in phases starting in 2026, in coordination with Saipem’s installation of subsea umbilicals, risers, and flowlines (SURF). The deployment will be carried out using advanced offshore construction vessels, ensuring precision and efficiency.
- Full Production Ramp-up – The Bonga North development is anticipated to reach peak production by 2027, integrating seamlessly with the existing Bonga FPSO. This milestone will mark a significant boost to Nigeria’s offshore output, reinforcing the country’s status as a major deepwater oil producer.
Industry Implications
TechnipFMC’s involvement in Bonga North reinforces Nigeria’s position as a major offshore oil producer. The contract award also highlights the increasing role of advanced subsea technology in optimizing oil recovery from deepwater fields.
With continued investment in offshore infrastructure and growing collaboration between international firms and local industry players, Nigeria’s energy sector remains on track for sustained production and economic growth. The success of Bonga North will likely pave the way for future deepwater projects, attracting further capital investments from major oil and gas players.
Additionally, the implementation of next-generation subsea systems by TechnipFMC will contribute to improved operational efficiency and lower maintenance costs, making deepwater developments more economically viable. As oil companies seek to maximize returns in a competitive market, technology-driven solutions will play a critical role in shaping the future of offshore production.
The Bonga North project is not only a milestone for Nigeria’s energy sector but also a strategic development for global deepwater oil production. With the involvement of top-tier companies like TechnipFMC and Saipem, the project is set to deliver long-term value to both investors and the Nigerian economy.
