Global oil giant, Royal Dutch Shell, has announced the postponement of the final investment decision on the $12bn Bonga South-West project in deep-water Nigeria amid the sustained drop in oil prices, The Punch reports.
The company on Thursday announced that its adjusted profit fell by 56 per cent in the fourth quarter of 2015 compared to a year earlier, while its earnings fell by 80 per cent to $3.84bn, compared to $19bn in 2014. The Chief Executive Officer, Royal Dutch Shell Plc, Ben van Beurden, said “For 2016, we have exited the Bab sour gas project in Abu Dhabi, and are postponing final investment decisions on LNG Canada and Bonga South West in deep-water Nigeria. Operating costs and capital investment have been reduced by a total of $12.5bn as compared to 2014, and we expect further reductions in 2016”.
The Shell Nigeria Exploration and Production Company Limited, which operates the Bonga field, had in February last year restated its commitment to the implementation of the SNEPCo-operated Bonga South West/Aparo project, denying reports that it had stopped the development due to the slump in oil price.