Tinubu Hails $5bn Shell Investment in Bonga North as Energy Sector Milestone
President Bola Tinubu has celebrated Shell and its partners’ decision to proceed with the Final Investment Decision (FID) on the Bonga North Deep Offshore Field, marking Nigeria’s first deepwater oil project in over a decade.
This $5 billion investment, which includes partners such as NNPCL, ExxonMobil, TotalEnergies, and Eni, is expected to yield approximately 350 million barrels of crude oil. The field, located 130 kilometers offshore within Oil Mining Lease (OML) 118, reaffirms the confidence of international investors in Nigeria’s energy sector.
Tinubu’s Remarks
In a statement by Presidential spokesman Bayo Onanuga, President Tinubu highlighted the strategic reforms under his administration that have attracted such investments:
“The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people. Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts.”
The President reiterated his administration’s commitment to supporting the project and ensuring its success in maximizing Nigeria’s energy potential.
Strategic Engagements and Reforms
Since assuming office, Tinubu has prioritized creating a stable and competitive investment climate. In July 2023, at a high-level meeting with Shell’s global leadership, Tinubu emphasized Nigeria’s openness to business and investment.
The administration’s Presidential Directives 40, 41, and 42, issued in early 2024, were key in fast-tracking regulatory approvals, lowering operational costs, and introducing competitive fiscal incentives. These reforms are designed to enhance Nigeria’s attractiveness in the global energy market.
Milestones in Energy Development
The Bonga North project is the second blueprint project under these transformative initiatives, following the earlier FID on the Ubeta oilfield (OML 58) by TotalEnergies and NNPCL. The Ubeta project, dormant since its discovery in 1965, is set to produce 350 million standard cubic feet of gas per day, supporting Nigeria’s domestic and export markets.
Special Adviser’s Perspective
Ms. Olu Arowolo Verheijen, Special Adviser to the President on Energy, praised the Bonga North project as a significant achievement:
“The Bonga North FID dispels misconceptions about International Oil Companies leaving Nigeria. Instead, we are witnessing a strategic pivot to deepwater and integrated gas projects, which align with the President’s vision of transforming Nigeria into a global energy hub.”
She emphasized that such projects will trigger broader investments, revolutionizing sectors like power generation, transportation, and manufacturing, and laying the groundwork for a prosperous future.
Looking Ahead
With the Bonga North and Ubeta projects already achieving FIDs, the Tinubu administration expects more FIDs in the coming years, positioning Nigeria as a leader in global energy innovation and investment. These efforts promise tangible benefits for all Nigerians, fostering economic growth and sustainable development.
This landmark development showcases the Tinubu administration’s effective policies in restoring investor confidence and reinvigorating Nigeria’s energy sector.
