Shell Plc has announced plans to deepen its stake in Nigeria through a fresh $20 billion investment in the Bonga Southwest deep offshore oil project, signalling renewed confidence in the country’s oil sector under President Bola Tinubu’s administration.
During a recent meeting with President Tinubu at the Presidential Villa in Abuja, Shell Chief Executive Officer, Mr Wael Sawan, said the company and its partners are ready to commit the additional $20 billion primarily because of the robust and bold leadership of the President.
According to a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, Sawan emphasised that Nigeria, under the Tinubu administration, is one of the countries attracting significant investment from global oil companies.
Sawan highlighted Shell’s recent investments, including $5 billion in Bonga North, $2 billion in HI, and the gas project supplying NLNG, stressing the corporation’s commitment to long-term investments amid a stable economic environment.
“We have really been in a space where we are very keen to invest in Nigeria. But I would say this has not always been the case.
Your leadership and your vision have created an investment climate over the last few years that, I will be very honest with you, propelled us to invest, in particular, also as we compare to other investments around the world,” he said.
The Shell CEO further noted that “stability in today’s environment will honestly have a premium for corporates because we are investing not for one administration or five or 10 years; we want to invest for 20, 30, or 40 years, and in the case of Nigeria, for many, many decades.”
Speaking on the expansion of Shell’s investments in Nigeria, Sawan said the corporation has deepened its interest in OML 118, the Bonga Block.
“TotalEnergies was selling, so we bought it because we want to deepen it further. But that, we think, is not enough. We think there is more to invest here, and we understand the vision that you have for the country.
“And so we are indeed working on a project, Bonga Southwest, that could, if we reach an FID stage, see us, with our partners, invest around $20bn in foreign direct investment, half of which will be capital. The other half will be the operating expenses and the like that will come into the country. This will be one of the biggest energy projects in the world,” he explained.
He added that Shell still sees further opportunities, such as Bonga South, and described the company’s renewed commitments as a “sea change” from several years ago when it was reducing investments in Nigeria.
“Your Excellency, for Bonga Southwest, that huge project, I would like to thank you. I want to thank you for the leadership you have shown there to be able to provide the incremental incentives that are now getting us line of sight to an investment in this project with our partners,” the Shell boss added.
Sawan also commended the President’s team as outstanding professionals.
“And that leadership, I would also say, has put many of the people that we are working with, your team, amongst the best that we are dealing with anywhere in the world, and that professionalism allows us to be able to have the confidence, and I would say our partners as well, to have the confidence to continue to invest,” he concluded.
At the meeting, President Tinubu approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga Southwest deep offshore oil project by Shell and its partners.
The President directed his Special Adviser on Energy, Mrs Olu Arowolo-Verheijen, to facilitate the gazetting of the incentives within Nigeria’s existing legal and fiscal frameworks.
“These incentives are not blanket concessions; they are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.
“My expectation is clear: Bonga Southwest must reach a Final Investment Decision within the first term of this administration,” Tinubu stated.
