President Bola Tinubu has welcomed the announcement of the Final $5 billion Investment Decision (FID) by Shell and its partners on the Bonga North Deep Offshore Field.
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell Plc, on Monday, announced a final investment decision (FID) on Bonga North, a deep-water project off the coast of Nigeria.
The Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.
Reacting to the development in a statement issued on Monday, by Bayo Onanuga, his Special Adviser on Information and Strategy, President Tinubu said his Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to Nigerians.
“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”, he said, adding that the landmark development, which is Nigeria’s first deepwater oil project in over a decade, underscores the transformative impact of his policies and reforms in attracting investments in the oil and gas sector.
The Bonga North oilfield, located 130 kilometres offshore in Oil Mining Lease (OML) 118, represents an impressive estimated $5 billion investment and is expected to yield approximately 350 million barrels of crude oil. Shell holds the largest operational interest, with 55%. Its other partners are the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.
President Tinubu emphasised that the oil project signals renewed confidence in Nigeria’s energy sector and demonstrates the effectiveness of the Tinubu administration’s strategic focus on engendering a robust and competitive investment climate.
The Bonga North project is the second of the blueprint projects President Bola Ahmed Tinubu selected to drive the implementation of the transformative Presidential Directives 40, 41, and 42 issued in the first quarter of 2024.
“These directives, aimed at enhancing regulatory clarity, accelerating project timelines, and incentivising investment in Nigeria’s energy sector, have yielded remarkable results.
“Earlier this year, the Ubeta oilfield (OML 58), the first blueprint project under the same initiative, achieved a Final Investment Decision (FID) 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. With both blueprint projects now achieving FID, the success of these initiatives underscores the effectiveness of the President’s strategic vision for Nigeria’s energy future”, he said.
Ms Olu Arowolo Verheijen, Special Adviser to the President on Energy, said the Bonga North milestone 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 noted.
Ms Verheijen further noted further that 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 said.
