President Bola Tinubu has praised the $5 billion Final Investment Decision by Shell and its partners on the Bonga North Deepwater Project as a significant milestone for Nigeria’s energy sector.
Earlier today, Shell confirmed its FID for the deepwater offshore project in Nigeria.
In a statement on Monday by presidential spokesperson Bayo Onanuga, President Tinubu welcomed the announcement of the FID on the deepwater offshore field.
“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,” he said.
Meanwhile, the special adviser to the president on energy, Olu Verheijen stated that the Bonga North FID dispels misconceptions about the exit of international oil companies from Nigeria.
She said “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.”
She further noted that the success of the Bonga North and Ubeta oilfield projects highlights the effectiveness of the reforms and directives initiated by President Tinubu.
“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,” she added.
The statement described the development as Nigeria’s “first deepwater oil project in over a decade,” emphasizing the transformative impact of President Tinubu’s policies and reforms in attracting investments to the oil and gas sector.
“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,” the statement reads.
“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 Ubeta oilfield secured its Final Investment Decision earlier this year through a partnership between TotalEnergies and Nigerian National Petroleum Company Limited, with the $550 million investment agreement signed in June.
