Tinubu welcomes Shell’s $5 Billion Investment in Bonga North Field

President Ahmed Bola Tinubu welcomes the announcement of the Final Investment Decision (FID) on the Bonga North Deep Offshore Field by Shell and its partners, today.

This historic event, Nigeria’s first deepwater oil project in more than ten years, was revealed by the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga.

According to Onanuga, it highlights how the President’s reforms and policies have had a revolutionary effect on luring investments into the oil and gas industry.

About 350 million barrels of crude oil are anticipated to be produced from the Bonga North oilfield, which lies 130 kilometers offshore in Oil Mining Lease (OML) 118 and represents an amazing projected $5 billion investment.

With a 55% stake, Shell has the biggest operational interest as per report.

ExxonMobil, TotalEnergies, Eni, and the Nigerian National Petroleum Corporation (NNPC) are its other partners.

According to source, the FID shows the success of the Tinubu administration’s strategic commitment on creating a strong and competitive investment climate and signifies a revived sense of confidence in Nigeria’s energy sector.

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 realisation of Nigeria’s energy potential”.

Onanuga asserts that this renewed wave of investments has been made possible in large part by President Tinubu’s deliberate engagement with international energy stakeholders.

During the first of multiple high-level meetings with Shell’s worldwide leadership in July 2023,

President Tinubu stated: “We are open for business and serious about creating a stable, predictable, and investor-friendly environment”.

This commitment was strengthened by Presidential Directives released in early 2024,according to source.

It reportedly lowered operating costs, expedited regulatory approvals, and introduced competitive fiscal incentives.

President Bola Ahmed Tinubu choice of  Bonga North project…

President Bola Ahmed Tinubu chose the Bonga North project as the second blueprint project to spearhead the execution of the revolutionary Presidential Directives 40, 41, and 42 that were released in the first quarter of 2024.

These guidelines have produced impressive outcomes, with the goals of improving regulatory clarity, expediting project deadlines, and encouraging investment in Nigeria’s energy sector.

Through a collaboration between TotalEnergies and Nigerian National Petroleum Company (NNPC) Limited, the Ubeta oilfield (OML 58), the first blueprint project under this strategy, received a Final Investment Decision (FID) earlier this year.

The Ubeta project, which has lain dormant since its discovery in 1965, would provide 350 million standard cubic feet of gas each day.

Experts suggest this will enhance domestic supply and increase Nigeria’s standing in the international energy market.

The fact that both of the blueprint projects are now achieving FID shows how successful the President’s strategic vision for Nigeria’s energy future is, Onanuga says.

President’s Special Advisor on Energy, Ms. Verheijen, offer

The President’s Special Advisor on Energy, Ms. Olu Arowolo Verheijen, offered the following remarks regarding the Bonga North milestone:

“The Bonga North FID dispels the 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.

“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 stated.

Ms Verheijen further said: “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 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.

In order to guarantee that these initiatives result in real advantages for all Nigerians, the Tinubu administration is unwavering in its commitment to establishing Nigeria as a global leader in energy innovation and investment.

The statement added: “The Tinubu administration remains steadfast in positioning Nigeria as a global leader in energy innovation and investment, ensuring that these efforts translate into tangible benefits for all Nigerians”.

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