President Bola Ahmed Tinubu has hailed the Final Investment Decision (FID) by Shell and its partners on the $5 billion Bonga North Deep Offshore Field as a transformative milestone for Nigeria’s energy sector.
The project, the first deepwater oil initiative in over a decade, is set to produce an estimated 350 million barrels of crude oil and reflects the success of Tinubu’s policy reforms aimed at revitalizing the nation’s oil and gas industry.
“The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people,” Tinubu said in a statement issued on Monday by his Special Adviser on Information and Strategy, Bayo Onanuga.
“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 realisation of Nigeria’s energy potential”, the President said.
Located 130 kilometers offshore in Oil Mining Lease (OML) 118, the Bonga North field involves a partnership comprising Shell, holding a 55% operational stake, alongside the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.
The statement said the announcement underscores renewed confidence in Nigeria energy landscape, attributed to the Tinubu administration’s strategic focus on creating a stable and investor-friendly environment.
Key to this achievement were Presidential Directives issued in early 2024, which streamlined regulatory approvals, reduced operational costs, and introduced competitive fiscal incentives.
In July 2023, President Tinubu had laid the groundwork for this renewed wave of investment during a meeting with Shell’s global leadership. “We are open for business and serious about creating a stable, predictable, and investor-friendly environment,” he said at the time.
The Bonga North project is the second of President Tinubu’s “blueprint projects” designed to implement the transformative Presidential Directives.
Earlier this year, the Ubeta oilfield (OML 58), dormant since its discovery in 1965, achieved its own FID.
The Ubeta project, developed by TotalEnergies and NNPC, will produce 350 million standard cubic feet of gas daily, boosting domestic supply and reinforcing Nigeria’s global energy presence.
Presidential Special Adviser on Energy, Ms. Olu Arowolo Verheijen, emphasized the significance of the Bonga North decision, saying “the FID dispels misconceptions about International Oil Companies leaving Nigeria.
“Instead, we are witnessing a strategic pivot of IOCs-powered capital and technical capacity to deepwater and integrated gas projects,” she noted.
She further highlighted the broader impact of the President’s reforms.
“These projects will trigger broader investments to revolutionise Nigeria’s power generation, transportation, and manufacturing sectors. 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,” Verheijen said.
With two major projects reaching FID under Tinubu’s leadership, the administration has signaled its commitment to positioning Nigeria as a global leader in energy innovation.
“The success of Bonga North and Ubeta demonstrates the efficacy of the reforms and directives championed by the President,” Verheijen added.
The Tinubu administration remains steadfast in positioning Nigeria as a global leader in energy innovation and investment, ensuring that these efforts translate into tangible benefits for all Nigerians.
