President Bola Ahmed Tinubu has hailed the landmark $5 billion Final Investment Decision (FID) for the Bonga North Deep Offshore Field, announced today by Shell and its partners, as a transformative milestone for Nigeria’s energy sector. This development, the first major deepwater oil project in over a decade, underscores the profound impact of the President’s pro-investment policies and reforms in revitalizing the nation’s oil and gas industry.
Located 130 kilometers off Nigeria’s coastline in Oil Mining Lease (OML) 118, the Bonga North project is set to produce an estimated 350 million barrels of crude oil. Shell leads the consortium with a 55% operational stake, alongside strategic partners—Nigerian National Petroleum Corporation (NNPC) Limited, ExxonMobil, TotalEnergies, and Eni. This substantial investment signals renewed confidence in Nigeria’s energy potential and the effectiveness of the Tinubu administration’s reforms aimed at fostering a globally competitive business environment.
Speaking on this milestone, President Tinubu stated:
“The Renewed Hope Agenda is focused on attracting investments that will transform Nigeria’s economy and deliver shared prosperity to all. From the onset of my administration, we have implemented policies to make Nigeria an investment destination of choice. The decision by Shell and its partners to proceed with the Bonga North project is proof that our efforts are yielding results. We will continue to support and facilitate the success of this project and others like it as we unlock Nigeria’s energy potential.”
President Tinubu’s engagement with international energy stakeholders has been pivotal in rekindling interest in Nigeria’s oil and gas sector. During high-level discussions with Shell’s leadership in July 2023, the President affirmed Nigeria’s readiness to create a stable, predictable, and investor-friendly climate. This assurance was further solidified by Presidential Directives issued in early 2024, which expedited regulatory processes, lowered operational costs, and introduced competitive fiscal incentives.
The Bonga North project is part of the President’s blueprint to accelerate the growth of Nigeria’s energy sector, marked by the rollout of Presidential Directives 40, 41, and 42 in the first quarter of 2024. These directives focus on enhancing regulatory clarity, reducing project timelines, and incentivizing investments. Earlier this year, another flagship project, the Ubeta oilfield in OML 58, reached FID under a partnership between TotalEnergies and NNPC Limited. Dormant since its discovery in 1965, the Ubeta project is now set to produce 350 million standard cubic feet of gas per day, strengthening domestic gas supply and boosting Nigeria’s global energy profile.
The Special Adviser to the President on Energy, Ms. Olu Arowolo Verheijen, highlighted the significance of the Bonga North decision:
“The FID on Bonga North dispels myths about International Oil Companies (IOCs) abandoning Nigeria. Instead, it reflects a strategic pivot by IOCs towards deepwater and integrated gas projects, in alignment with President Tinubu’s vision of making Nigeria a global energy hub. Onshore divestments are creating opportunities for indigenous companies to flourish, thereby building a resilient and inclusive energy future for Nigeria.”
Transforming Nigeria’s Energy Future
The Bonga North investment not only cements Nigeria’s position as a key player in the global energy market but also reflects the Tinubu administration’s success in fostering an enabling environment for high-impact investments. With the successful FIDs of both the Bonga North and Ubeta oilfields, Nigeria is poised for a new era of energy-driven economic transformation.
As President Tinubu’s vision continues to unfold, the message is clear: Nigeria is open for business and ready to lead the charge in shaping the future of energy in Africa and beyond.
