In a move that will strengthen Nigeria’s energy sector, President Bola Ahmed Tinubu has welcomed the development of Shell and its partners’ $5 billion deepwater investment.
The investment, announced by the Special Adviser to the President, Mr. Bayo Onanuga, in a statement on Monday, is the Final Investment Decision (FID) on the Bonga North Deep Offshore Field.
Mr. Onanuga noted that the landmark development is Nigeria’s first deepwater oil project in over a decade, highlighting the transformative impact of the President’s policies and reforms in attracting investments in the oil and gas sector.
According to him, the Bonga North oilfield, located 130 kilometres 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. The FID signals renewed confidence in Nigeria’s energy sector and demonstrates the effectiveness of the Tinubu administration’s strategic focus on engendering a robust and competitive investment climate,” the statement partly reads.
“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 realisation of Nigeria’s energy potential,” President Tinubu remarked.
The spokesperson stated that the President’s strategic engagement with global energy stakeholders has been instrumental in this renewed wave of investments.
He recounted that at the first of several high-level meetings with Shell’s global leadership in July 2023, President Tinubu disclosed: “We are open for business and serious about creating a stable, predictable, and investor-friendly environment.”
“Presidential Directives issued in early 2024 reinforced this commitment by fast-tracking regulatory approvals, reducing operational costs, and introducing competitive fiscal incentives. 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,” Onanuga stressed.
He mentioned that the directives, aimed at enhancing regulatory clarity, accelerating project timelines, and incentivising 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 veteran journalist said.
He reiterated President Tinubu’s administration steadfastness in positioning Nigeria as a global leader in energy innovation and investment, thereby ensuring that the efforts translate into tangible benefits for all Nigerians.
On her part, the Special Adviser to the President on Energy, Ms. Olu Arowolo Verheijen explained: “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.”
Ms. Verheijen added: “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 revolutionise Nigeria’s power generation, transportation, and manufacturing sectors. As we look ahead to 2025, we anticipate further FIDs from international and domestic players, marking a new era of growth and opportunity for Nigeria.”
