President Bola Ahmed Tinubu has described Shell and partners’ $5 billion investment in Nigeria’s deepwater as a win for the country’s oil and gas sector.
President Tinubu said the landmark development, Nigeria’s first deepwater oil project in over a decade, underscores the transformative impact of his policies and reforms in attracting investments in the oil and gas sector
A statement from his Special Assistant on Information and Strategy, Bayo Onanuga, disclosed that Shell and its partners announced today (Monday) the Final Investment Decision (FID) on the Bonga North Deep Offshore Field.
The Bonga North oilfield, located 130 kilometers offshore in Oil Mining Lease (OML) 118, represents an impressive estimated $5 billion investment and is expected to yield approximately 350 million barrels of crude oil. Shell holds the largest operational interest, with 55%. Its other partners are the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.
He noted that the FID signals renewed confidence in Nigeria’s energy sector and demonstrates the effectiveness of the administration’s strategic focus on engendering a robust and competitive investment climate.
“The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people. We designed our policies and reforms from the start of my administration to achieve this goal. Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts. We will continue to offer the necessary support to ensure their success and the realization of Nigeria’s energy potential,” President Tinubu said.
In July 2023, at the first of several high-level meetings with Shell’s global leadership, President Tinubu declared, “We are open for business and serious about creating a stable, predictable, and investor-friendly environment.”
The Bonga North project is the second of the blueprint projects President Bola Ahmed Tinubu selected to drive the implementation of the transformative Presidential Directives 40, 41, and 42 issued in the first quarter of 2024.
These directives, aimed at enhancing regulatory clarity, accelerating project timelines, and incentivizing investment in Nigeria’s energy sector, have yielded remarkable results.
“Earlier this year, the Ubeta oilfield (OML 58), the first blueprint project under this initiative, achieved a Final Investment Decision (FID) through a partnership between TotalEnergies and NNPC Limited.
“Dormant since its discovery in 1965, the Ubeta project will produce 350 million standard cubic feet of gas per day, bolstering domestic supply and expanding Nigeria’s presence in the global energy market.
“With both blueprint projects now achieving FID, the success of these initiatives underscores the effectiveness of the President’s strategic vision for Nigeria’s energy future,” the statement stated.
On her part, the Special Adviser to the President on Energy, Ms. Olu Arowolo Verheijen, said the Bonga North FID has dispelled misconceptions about International Oil Companies (IOCs) leaving Nigeria.
“The Bonga North FID dispels the misconceptions about International Oil Companies leaving Nigeria. Instead, we are witnessing a strategic pivot of IOCs-powered capital and technical capacity to deepwater and integrated gas projects, which align with President Tinubu’s vision of transforming Nigeria into a global energy hub. The divestments from onshore operations create opportunities for local oil and gas companies to expand and thrive, building a strong foundation for Nigeria’s energy future,” Verheijen said.
She added that Bonga North and Ubeta successes showed the efficacy of the President’s reforms in the oil and gas sector.
“The success of Bonga North and Ubeta demonstrates the efficacy of the reforms and directives championed by the President. These projects will trigger broader investments to revolutionize Nigeria,” she added.
