Tinubu, Shell Move to Seal $20bn Deep Offshore Oil Investment

 

President Bola Tinubu and Shell Plc have begun high-level engagements aimed at securing a proposed $20 billion investment in Nigeria’s deep offshore oil sector, as part of efforts to boost foreign direct investment and expand energy production.

The Chief Executive Officer of Shell Plc, Mr Wael Sawan, disclosed this during a meeting with President Tinubu at the Presidential Villa, Abuja, where he commended the administration’s leadership for restoring investor confidence and creating a stable environment for long-term investments.

Sawan said Shell, alongside its partners, is prepared to commit an additional $20bn to Nigeria, citing the President’s “bold and decisive leadership” as a major factor behind the renewed investment drive.

According to a statement issued by the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, the Shell CEO noted that Nigeria has emerged as one of the most attractive destinations for global oil investments under the current administration.

He highlighted Shell’s ongoing investments in the country, including $5bn in the Bonga North project, $2bn in the HI development, and sustained gas investments linked to the Nigeria Liquefied Natural Gas (NLNG) project.

Sawan said the company’s renewed commitment reflects confidence in Nigeria’s economic stability and long-term policy direction.

“Stability has a premium in today’s global investment climate. We are investing not for one administration, but for decades. Nigeria offers that long-term opportunity,” he said.

He added that Shell recently increased its stake in Oil Mining Lease (OML) 118, covering the Bonga field, following its acquisition of interests previously held by TotalEnergies.

According to him, Shell is also advancing plans for the Bonga Southwest project, which could attract up to $20bn in foreign direct investment if a Final Investment Decision (FID) is reached. He described the project as potentially one of the largest energy developments globally.

The Shell boss further disclosed that additional opportunities, including Bonga South, remain in the pipeline, marking a significant turnaround from previous years when the company scaled back investments in Nigeria.

He praised President Tinubu for approving targeted, investment-linked incentives to support the Bonga Southwest deep offshore project, noting that the incentives have improved Shell’s outlook on reaching FID.

In his remarks, President Tinubu approved the gazetting of the incentives, stressing that they are not blanket concessions but are strictly tied to new investments, increased production, local content development, and in-country value addition.

“These incentives are ring-fenced and aligned with our legal and fiscal frameworks. My expectation is that Bonga Southwest must reach Final Investment Decision within the first term of this administration,” the President said.

He also directed his Special Adviser on Energy, Mrs Olu Arowolo-Verheijen, to fast-track the gazetting process to ensure timely implementation.