President Tinubu Hails Shell’s $5Bn Bonga North Investment Decision

President Bola Ahmed Tinubu has applauded Shell and its partners for announcing the Final Investment Decision (FID) on the Bonga North Deep Offshore Field, marking a pivotal milestone in Nigeria’s oil and gas sector.

According to an official statement, this project—the country’s first deepwater oil venture in over a decade—reflects the transformative impact of the President’s policies and reforms aimed at fostering investment in Nigeria’s energy industry.

Located 130 kilometres offshore within Oil Mining Lease (OML) 118, the Bonga North oilfield represents a $5 billion investment and is expected to produce approximately 350 million barrels of crude oil. Shell holds a 55% operating stake in the field, collaborating with partners including the Nigerian National Petroleum Company (NNPC) Limited, ExxonMobil, TotalEnergies, and Eni.

The announcement underscores renewed confidence in Nigeria’s energy sector, with President Tinubu’s administration prioritising a robust, competitive investment climate.

Tinubu: “Our Policies Are Driving Energy Sector Growth”

Commenting on the development, President Tinubu stated, “The Renewed Hope Agenda focuses on attracting investments that will transform the Nigerian economy and improve the lives of our people. This decision by Shell and its partners validates the effectiveness of our policies and reforms. We remain committed to supporting these projects to unlock Nigeria’s energy potential.”

President Tinubu’s engagement with Shell’s leadership earlier this year emphasised Nigeria’s openness to business and commitment to creating a stable, predictable, and investor-friendly environment. Key presidential directives issued in early 2024 streamlined regulatory processes, reduced operational costs, and introduced competitive fiscal incentives, further enhancing Nigeria’s appeal to global investors.

Blueprint Projects Signal Strategic Progress

The Bonga North oilfield is one of two priority projects under President Tinubu’s transformative Presidential Directives 40, 41, and 42, which aim to enhance regulatory clarity, accelerate project timelines, and attract energy investments.

The first blueprint project, the Ubeta oilfield (OML 58), secured its Final Investment Decision earlier this year through a partnership between TotalEnergies and NNPC Limited. Dormant since its discovery in 1965, the Ubeta field is set to produce 350 million standard cubic feet of gas daily, boosting domestic supply and strengthening Nigeria’s presence in the global energy market.

Strategic Pivot to Deepwater and Integrated Gas Projects

Ms Olu Arowolo Verheijen, Special Adviser to the President on Energy, hailed the Bonga North FID as a testament to Nigeria’s evolving energy landscape. She dismissed concerns about International Oil Companies (IOCs) exiting Nigeria, highlighting their strategic shift toward deepwater and integrated gas projects aligned with the President’s vision of positioning Nigeria as a global energy hub.

“The divestments from onshore operations open up opportunities for local oil and gas companies to expand and thrive, creating a solid foundation for the nation’s energy future,” Verheijen noted.

She further emphasised that the success of Bonga North and Ubeta demonstrates the effectiveness of President Tinubu’s reforms, which are expected to spur broader investments across power generation, transportation, and manufacturing sectors.

Energy Innovation Driving Economic Growth

As Nigeria anticipates further Final Investment Decisions from international and domestic stakeholders by 2025, President Tinubu’s administration remains steadfast in its mission to make Nigeria a global leader in energy innovation and investment.

The government is committed to ensuring that these advancements translate into tangible benefits for all Nigerians, paving the way for sustained economic growth and prosperity.

This historic investment signals a new chapter for Nigeria’s oil and gas sector, bolstered by strategic reforms and a vision for a thriving energy-driven economy.