President Bola Tinubu has commended the announcement today by Shell and its partners to invest $5billion in the Bonga North Deep Offshore Field, declaring that the investment reflects that his administration’s policies and reforms in the oil and gas sector are yielding results.
Tinubu made the commendation in a statement released on Monday by his Special Adviser on Strategy and Communication, Bayo Onanuga.
The Bonga North oilfield, located 130 kilometres offshore in Oil Mining Lease (OML) 118, represents an estimated $5 billion investment and is expected to yield approximately 350 million barrels of crude oil. Shell holds the largest operational interest with 55 percent, while the Nigerian National Petroleum Corporation Limited (NNPCL), ExxonMobil, TotalEnergies and Eni jointly hold the remaining 45 percent.
The president said: “The final investment decision signals renewed confidence in Nigeria’s energy sector and demonstrates efforts in engendering a robust and competitive investment climate. 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.”
The statement added that Tinubu’s strategic engagement with global energy stakeholders has been instrumental in this renewed wave of investment, disclosing that in July 2023, at the first of several high-level meetings with Shell’s global leadership, the president had declared that the country was open for business and serious about creating a stable, predictable and investor-friendly environment.
Onanuga stated in the statement that Tinubu’s commitment was further reinforced through the presidential directives issued in early 2024 reinforced by fast-tracking regulatory approvals, reducing operational costs and introducing competitive fiscal incentives.
“The Bonga North project is the second of the blueprint projects President Tinubu selected to drive the implementation of the transformative Presidential Directives 40, 41 and 42 issued in the first quarter of 2024.
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“These directives are aimed at enhancing regulatory clarity, accelerating project timelines and incentivising investment in Nigeria’s energy sector. Earlier this year, the Ubeta oilfield (OML 58), the first blueprint project under this initiative, achieved a final investment decision through a partnership between TotalEnergies and NNPC Limited.
“Dormant since its discovery in 1965, the Ubeta project will produce 350 million standard cubic feet of gas per day, bolstering domestic supply and expanding Nigeria’s presence in the global energy market,” it said.
Ms Olu Arowolo Verheijen, Special Adviser to the President on Energy, commenting on the Bonga North milestone said: “The Bonga North final investment decision dispels the misconceptions about international oil companies leaving Nigeria. Instead, we are witnessing a strategic pivot of international oil companies-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. 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 final investment decisions from international and domestic players, marking a new era of growth and opportunity for Nigeria.”
