President Bola Ahmed Tinubu has lauded Shell and its partners for their announcement of a $5 billion Final Investment Decision (FID) on the Bonga North Deep Offshore Field, Nigeria’s first deepwater oil project in over a decade.
This significant investment, located 130 kilometers offshore in Oil Mining Lease (OML) 118, is expected to yield approximately 350 million barrels of crude oil, reinforcing confidence in the country’s energy sector.
Shell holds a 55% operational interest in the project, with the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni as key partners.
In a statement, President Tinubu said the investment aligns with his administration’s Renewed Hope Agenda, which focuses on creating an investor-friendly environment through targeted reforms and policies. “Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts. We will continue to provide the necessary support to ensure their success and the realization of Nigeria’s energy potential,” the President remarked.
The project comes as part of a broader wave of reforms spearheaded by the Tinubu administration to attract global energy investments. High-level engagements with international oil companies, including a pivotal meeting with Shell leadership in July 2023, emphasized Nigeria’s commitment to a stable and predictable investment climate. Subsequent Presidential Directives issued in early 2024 have fast-tracked regulatory approvals, reduced operational costs, and introduced competitive fiscal incentives.
The Bonga North project marks the second milestone under Tinubu’s transformative energy blueprint. Earlier in 2024, the Ubeta oilfield in OML 58, dormant since its discovery in 1965, also reached FID under a partnership between TotalEnergies and NNPC Limited. With the capacity to produce 350 million standard cubic feet of gas per day, Ubeta bolsters domestic supply and positions Nigeria for global energy expansion.
Both projects reflect the success of Presidential Directives 40, 41, and 42, which aim to enhance regulatory clarity, accelerate project timelines, and incentivize energy investments.
Special Adviser to the President on Energy, Ms. Olu Arowolo Verheijen, celebrated the Bonga North FID as a milestone dispelling concerns about the exodus of international oil companies from Nigeria. “Instead, we are witnessing a strategic pivot of IOCs’ 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,” she stated.
Ms. Verheijen further highlighted the ripple effect these projects are expected to generate across Nigeria’s power, transportation, and manufacturing sectors, forecasting additional FIDs by 2025 from both international and domestic players.
President Tinubu’s administration continues to prioritize energy innovation and investment, ensuring that these initiatives deliver tangible benefits to Nigerians.
With two major deepwater projects achieving FID in under a year, Nigeria is poised to solidify its position as a leader in the global energy landscape.
