… Presidency to gazette incentives, paving way for Bonga South West FID before 2027

Oredola Adeola

Shell Plc has unveiled plans to invest an additional $20 billion in the Bonga South West oil project, just 13 months after committing $7 billion to Bonga North, following President Bola Tinubu’s approval of targeted, investment-linked incentives to support the deep-offshore project and pave the way for a Final Investment Decision before the end of 2027.

Sunday Dare, Special Adviser to the President on Media and Public Communication, disclosed this in a statement on Thursday on the sideline of the courtesy visit of a Shell delegation, led by Global CEO Wael Sawan, to the State House.

The President also directed Mrs. Olu Verheijen, his Special Adviser on Energy, to facilitate the gazette of the incentives in line with Nigeria’s existing legal and fiscal frameworks.

President Tinubu during the meeting disclosed that the incentives are disciplined, targeted, and globally competitive, designed to attract new capital without undermining government revenues.

“These incentives are not blanket concessions,” the President stated.

“They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.

“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration.”

President Tinubu emphasised that the Bonga South West project is strategic to Nigeria’s economy, with the potential to create thousands of direct and indirect jobs, generate significant foreign-exchange inflows, and deliver sustained government revenues over the life of the project.

He added that the project would also deepen Nigerian participation in offshore engineering, fabrication, logistics, and energy services.

The President reaffirmed his administration’s commitment to policy stability, regulatory certainty, and speed, noting that these reforms are critical to restoring investor confidence and positioning Nigeria as a preferred destination for large-scale energy investment.

He further noted that Shell and its partners have invested nearly US$7 billion in Nigeria in the past 13 months, particularly in Bonga North and HI, describing this as a clear sign that Nigeria’s economic and energy-sector reforms are delivering results.

Shell GCEO, Wael Sawan in his remarks said Nigeria’s investment climate has improved remarkably under the Tinubu administration, adding that Shell is increasingly confident in Nigeria as a destination for long-term investment.

He said, “We are very keen to invest in Nigeria. But I’ll say this hasn’t always been the case. Your leadership has created an investment climate over the last few years that has propelled Shell to invest in Nigeria.” he informed President Tinubu.

Bayo Ojulari, Group Chief Executive Officer (GCEO) of Nigerian National Petroleum Company (NNPC) Limited, commenting on the development disclosed that Shell Plc has made commitments to invest $20 billion in Nigeria over the next few years.

“They indicated their ability to do this and the ability to pull an operating expense of about $10 billion, will attract job opportunities for Nigerians for the next 25 to 30 years.

Ojulari further emphasised that as a concession holder for the Nigerian production sharing contracts (PSCs) the NNPC Limited with international investors like Shell, Chevron, and ExxonMobil, will continue to work collaboratively.