President Bola Ahmed Tinubu has welcomed the announcement of the Final Investment Decision (FID) on the Bonga North Deep Offshore Field by Shell and its partners, marking a significant breakthrough for Nigeria’s energy sector. This development, Nigeria’s first major deepwater oil project in over a decade, highlights the success of the Tinubu administration’s policies in attracting substantial investments to the oil and gas industry.
The Bonga North oilfield, situated 130 kilometers offshore in Oil Mining Lease (OML) 118, represents a $5 billion investment and is projected to produce approximately 350 million barrels of crude oil. Shell holds a 55% operational interest alongside its partners: the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.
President Tinubu emphasized that this milestone reflects the impact of his administration’s reforms, stating:
“The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people. 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 realization of Nigeria’s energy potential.”
The President’s strategic engagement with global energy stakeholders has played a critical role in driving investor confidence. In July 2023, President Tinubu assured Shell’s leadership of Nigeria’s commitment to fostering a stable and competitive investment climate, declaring: “We are open for business and serious about creating a stable, predictable, and investor-friendly environment.”
In early 2024, Presidential Directives 40, 41, and 42 accelerated regulatory approvals, reduced operational costs, and introduced fiscal incentives to attract investment. The Bonga North project is the second among these blueprint initiatives. Earlier this year, the Ubeta oilfield (OML 58) achieved its FID under a TotalEnergies and NNPC partnership. Dormant since its discovery in 1965, Ubeta is expected to deliver 350 million standard cubic feet of gas daily, boosting domestic supply and strengthening Nigeria’s global energy position.
Speaking on the Bonga North milestone, Ms. Olu Arowolo Verheijen, Special Adviser to the President on Energy, said:
“The Bonga North FID dispels the misconceptions about International Oil Companies leaving 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. These developments create opportunities for local oil and gas companies to thrive, laying the foundation for Nigeria’s energy future.”
Ms. Verheijen further added: “The success of Bonga North and Ubeta demonstrates the efficacy of the President’s reforms. These projects will drive broader investments to revolutionize Nigeria’s power generation, transportation, and manufacturing sectors. As we move towards 2025, we expect further FIDs that will usher in a new era of growth and opportunity for Nigeria.”
President Tinubu’s administration remains committed to solidifying Nigeria’s position as a global leader in energy innovation, ensuring these achievements deliver tangible benefits for Nigerians.
ADBN NEWS.
