Emmanuel OchayiPresident Bola Ahmed Tinubu has hailed Shell and its partners’ $5 billion investment in the Bonga North Deep Offshore Field, marking a major step forward for Nigeria’s energy sector. This investment, announced with the Final Investment Decision (FID) on the project, is seen as a major boost for Nigeria’s oil and gas industry and a testament to the effectiveness of the Tinubu administration’s economic reforms.
This was issued in a statement by Bayo Onanuga, special adviser to the President (Information & Strategy), said the landmark development, Nigeria’s first deepwater oil project in over a decade, underscores the transformative impact of the President’s policies and reforms in attracting investments in the oil and gas sector.
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The Bonga North oilfield, located 130 kilometers offshore in Oil Mining Lease (OML) 118, represents the first deepwater oil project in Nigeria in over ten years. The field is expected to produce approximately 350 million barrels of crude oil. Shell holds the largest operational interest in the field with 55%, and its partners include the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.
Tinubu’s Vision for Nigeria’s Energy Future
President Tinubu expressed his enthusiasm for the development, calling it a key milestone in the ongoing transformation of Nigeria’s energy sector. “The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people,” President Tinubu said in a statement. “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.”
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The Bonga North development aligns with Tinubu’s strategic vision for creating a stable and competitive investment climate in Nigeria. In a meeting with Shell’s global leadership in July 2023, President Tinubu said, “We are open for business and serious about creating a stable, predictable, and investor-friendly environment.”
The Role of Presidential Directives
The Bonga North project is a part of a broader blueprint designed by President Tinubu’s administration to revitalize Nigeria’s energy sector. Earlier in 2024, President Tinubu issued three key Presidential Directives aimed at improving regulatory clarity, fast-tracking approvals, and providing fiscal incentives for investors. These directives, known as Presidential Directives 40, 41, and 42, are part of the government’s effort to make Nigeria a more attractive destination for global energy investments.
Investments Driving Growth in Nigeria’s Energy Sector
The success of the Bonga North project follows the earlier achievement of the Final Investment Decision (FID) for the Ubeta oilfield (OML 58). The Ubeta project, which had been dormant since its discovery in 1965, is expected to produce 350 million standard cubic feet of gas per day. This project is expected to significantly increase Nigeria’s domestic gas supply and enhance the country’s presence in the global energy market.
The success of both projects highlights the effectiveness of President Tinubu’s policies in rejuvenating Nigeria’s energy sector and positioning the country as a key player in the global energy market.
Support for Local Companies and Energy Transformation
Ms. Olu Arowolo Verheijen, Special Adviser to the President on Energy, commented on the importance of the Bonga North project. “The Bonga North FID dispels the misconceptions about International Oil Companies leaving Nigeria,” she said. “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.”
Ms. Verheijen added, “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 revolutionize Nigeria’s power generation, transportation, and manufacturing sectors.”
More Investments Expected
With both the Bonga North and Ubeta projects now officially underway, President Tinubu’s administration is focused on attracting even more investments in Nigeria’s energy sector. “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,” said Ms. Verheijen.
The Tinubu administration is committed to positioning Nigeria as a leader in global energy innovation and investment. This approach, which has already yielded significant results, is expected to continue benefiting the country’s economy and its people.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
