President Bola Tinubu has restated his administration’s commitment to further improve investments in Nigeria, as he celebrated the $5 billion investment by Shell and its partners in the nation’s oil sector.
The investment is expected to yield approximately 350 million barrels of crude oil, according to a State House release, titled, ‘President Tinubu celebrates Shell and partners’ $5 billion deep-water investment as milestone for Nigeria’s energy sector.’
The statement was issued by the president’s Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Monday.
The Final Investment Decision on the Bonga North Deep Offshore Field, IS located 130 kilometres offshore in Oil Mining Lease 118.
According to the statement, 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.
“This landmark development, Nigeria’s first deep-water oil project in over a decade, underscores the transformative impact of the President’s policies and reforms in attracting investments in the oil and gas sector.
“Presidential directives issued in early 2024 reinforced this commitment by fast-tracking regulatory approvals, reducing operational costs and introducing competitive fiscal incentives,” the statement partly read.
Shell holds the largest operational interest, with 55%. Its other partners are the Nigerian National Petroleum Corporation Limited, ExxonMobil, TotalEnergies and Eni.
In his remark, Tinubu stated, “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.”
Tinubu’s strategic engagement with global energy stakeholders has been instrumental in this renewed wave of investments.
In July 2023, at the first of several high-level meetings with Shell’s global leadership, 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 selected by Tinubu 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 incentivising investment in Nigeria’s energy sector, have yielded remarkable results, including the Ubeta oilfield (OML 58,
The Special Adviser to the President on Energy, Olu Verheijen, commented on the Bonga North milestone, saying, “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 deep-water 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,” among others.
“The Tinubu administration remains steadfast in positioning Nigeria as a global leader in energy innovation and investment, ensuring that these efforts translate into tangible benefits for all Nigerians,” the statement concluded.
