Tinubu Applauds $5B Shell Investment in Nigeria’s Deepwater

In a monumental development for Nigeria’s energy sector, Shell and its partners have announced the Final Investment Decision (FID) for the Bonga North Deep Offshore Field. The $5 billion project marks Nigeria’s first deepwater oil investment in over a decade, solidifying the transformative impact of President Bola Ahmed Tinubu’s reforms aimed at rejuvenating the nation’s oil and gas industry.

The Bonga North field, located 130 kilometres offshore within Oil Mining Lease (OML) 118, is estimated to hold 350 million barrels of crude oil. Operated by Shell with a 55% stake, the venture includes partners such as the Nigerian National Petroleum Company Limited (NNPCL), ExxonMobil, TotalEnergies, and Eni. Production is expected to commence within the next few years, delivering a substantial boost to Nigeria’s crude oil output and foreign exchange earnings.

Presidential Leadership Drives Investment

President Tinubu hailed the announcement as a testament to his administration’s focus on fostering an investment-friendly environment. Speaking on the achievement, he said:
“The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people. The decision by Shell and its partners to invest in Bonga North affirms the success of our efforts.”

This milestone follows several high-level engagements between the Tinubu administration and global energy stakeholders. In July 2023, the President met with Shell’s global leadership to reinforce Nigeria’s commitment to a predictable regulatory framework. His administration later issued directives in early 2024 to streamline approvals, reduce operational costs, and introduce competitive fiscal incentives, all of which were instrumental in securing this investment.

Broader Energy Reforms Bearing Fruit

The Bonga North project is the second blueprint initiative under the Tinubu administration’s Presidential Directives. Earlier this year, TotalEnergies and NNPCL achieved FID for the Ubeta oilfield (OML 58), which had remained dormant since 1965. This project is expected to produce 350 million standard cubic feet of gas daily, reinforcing Nigeria’s energy supply and enhancing its global competitiveness.

Special Adviser on Energy, Ms Olu Arowolo Verheijen, emphasised the significance of these developments, stating:
“The Bonga North FID dispels the misconception of International Oil Companies exiting Nigeria. Instead, we are witnessing a pivot towards high-value deepwater and integrated gas projects aligned with President Tinubu’s vision of transforming Nigeria into a global energy hub.”

Economic and Strategic Impacts

The Bonga North investment is anticipated to create jobs, stimulate ancillary industries, and provide much-needed revenue for government infrastructure projects. Furthermore, it signals renewed confidence among international oil companies (IOCs) in Nigeria’s energy market, countering concerns about divestment trends in onshore fields.

Looking ahead, the Tinubu administration expects further FIDs in 2025 from both international and local players. These investments are projected to revolutionise Nigeria’s energy landscape, driving growth in power generation, transportation, and manufacturing sectors.

A New Dawn for Nigeria’s Energy Sector

With strategic reforms and sustained leadership, Nigeria is poised to reclaim its position as a leading player in global energy markets. The Tinubu administration’s unwavering commitment to creating a stable, investor-friendly environment ensures that these advancements translate into tangible benefits for all Nigerians.

This $5 billion investment is more than an economic milestone; it symbolises the dawn of a transformative era for Nigeria’s oil and gas sector, paving the way for sustained growth and innovation.