According to Zhizhong Finance, Shell (SHEL.US) will begin producing Oil & Gas at the Bonga North offshore floating facility in Nigeria by the end of this decade. Shell stated in a press release on Monday that the region's oil production could reach up to approximately 0.11 million barrels per day, with recoverable oil estimated at 0.3 billion barrels. The Bonga North project has an investment of 5 billion dollars, which includes the drilling, completion, and commissioning of 16 wells.

The President of Nigeria stated in a press release: "We have designed our policies and reforms since taking office to achieve this goal. Shell and its partners' investment decision in Bonga North certainly confirms the success of our efforts."

The joint venture is one of several offshore projects, with BP PLC's Gulf of Mexico production expected to increase by the end of this decade, while discoveries by Shell and Total (TTE.US) in Namibia are also exciting. Although forecasters have downgraded the oil consumption growth expectations for this year, mainly reflecting economic weakness, consultancy Rapidan Energy Group stated in a recent report that Global demand may continue to grow until 2050.

Shell Nigeria Exploration and Production Company holds a 55% stake in the Bonga North oil field and is the operator of the field. Nigeria's Esso Exploration & Production Nigeria has a 20% stake, while Total's subsidiary and Nigerian Agip Exploration Ltd. each hold 12.5% stakes.