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Shell executes subsea projects in Nigeria, saves $30m

By on August 16, 2016

Shell Nigeria Exploration and Production Company, the deep-water subsidiary of Shell Companies in Nigeria, on Sunday said it had achieved significant savings in the cost of subsea equipment by refurbishing five subsea trees in-country led by Nigerian engineers.

SNEPCo saves about $6m for every refurbished subsea tree, delivered within 15 months as against 36 months for newly manufactured ones, according to a statement signed by the Corporate Media Relations Manager, Shell Petroleum Development Company of Nigeria Limited, Mr. Precious Okolobo.

A subsea tree is an arrangement of valves and other components installed at the wellhead to control and monitor production/injection flow.

SNEPCo said it embarked on a tree refurbishment initiative in 2013 to ensure timely delivery of the equipment at lower cost for the Bonga Phase 2 project, which comprised drilling and hook-up of in-field wells within Bonga.

The Managing Director of SNEPCo, Mr. Bayo Ojulari, was quoted to have said, “Beyond cost consideration, we were also looking to indigenise the know-how so that Nigerian engineers can acquire the necessary skills.

“We are pleased with this success story. The first subsea tree under the programme was installed on schedule in May 2015. This was the first of its kind re-using a subsea tree fully stripped down and refurbished locally in Nigeria, with all of its original functionality restored.”

 

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