President Tinubu hails Shell's $5b deepwater investment

I In a significant milestone for Nigeria’s energy sector, President Bola Ahmed Tinubu celebrated the announcement of the Final Investment Decision (FID) by Shell and its partners on the Bonga North Deep Offshore Field. This $5 billion deepwater oil project, Nigeria's first in over a decade, marks a pivotal achievement in President Tinubu’s commitment to attracting investments and reforming the oil and gas industry.

Located 130 kilometers offshore in Oil Mining Lease (OML) 118, the Bonga North oilfield is expected to produce approximately 350 million barrels of crude oil. Shell holds a 55% operational interest, partnering with the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.

Highlighting the significance of this investment, President Tinubu remarked:
"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’s proactive engagement with global energy leaders has been instrumental in restoring confidence in Nigeria’s energy market. His strategic initiatives, such as the Presidential Directives 40, 41, and 42, introduced in early 2024, have streamlined regulatory processes, reduced operational costs, and provided competitive incentives to attract investments.

This latest development follows the success of the Ubeta oilfield (OML 58), another key project under Tinubu’s directives, which achieved FID earlier in 2024. Dormant since its discovery in 1965, the Ubeta project is set to produce 350 million standard cubic feet of gas per day, enhancing domestic supply and strengthening Nigeria's role in the global energy landscape.

Ms. Olu Arowolo Verheijen, Special Adviser to the President on Energy, emphasized the broader impact of the Bonga North milestone:
"The Bonga North FID dispels 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."

She further 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 revolutionize 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.”

With Shell’s major commitment and ongoing reforms, President Tinubu’s administration is steadily positioning Nigeria as a leading destination for energy innovation and investment. This achievement signals renewed hope for economic growth, job creation, and a thriving energy sector that benefits all Nigerians.