Mr Wael Sawan, Chief Executive of Shell Plc, has praised President Bola Tinubu’s leadership for creating a favourable climate for investments and restoring investor confidence in Nigeria.
Speaking at a meeting with President Tinubu at the Presidential Villa, Mr Sawan said Shell is deepening and expanding its operations in the country and is ready, alongside its partners, to invest an additional $20 billion, primarily due to the President’s robust and bold leadership.
He noted that Nigeria, under the Tinubu administration, is among the countries attracting significant investment from global oil companies.
Highlighting Shell’s recent investments, including $5 billion in Bonga North, $2 billion in HI, and the gas project to NLNG, Mr Sawan said the company remains committed to long-term investments, emphasising the stability of the economic environment.
“We have really been in a space where we are very keen to invest in Nigeria. But I would say this has not always been the case. Your leadership and your vision have created an investment climate over the last few years that, I will be very honest with you, propelled us to invest, in particular, also as we compare to other investments around the world,” he said.
He added: “Stability in today’s environment will honestly have a premium for corporates because we are investing not for one administration or five or ten years. We want to invest for 20, 30, 40 years and, in the case of Nigeria, for many, many decades.”
On Shell’s expansion plans, Mr Sawan said the corporation has deepened its interest in Block OML 118, the Bonga Block.
“Total Energies was selling, so we bought it because we want to deepen further. But that, we think, is not enough. We think there is more to invest here, and we understand the vision that you have for the country. We are indeed working on a project, Bonga Southwest, that could, if we reach an FID stage, see us, with our partners, invest around $20 billion in foreign direct investment, half of which will be capital. The other half will be operating expenditure and the like that will come into the country,” he said.
“This will be one of the biggest energy projects in the world,” he added, noting further opportunities like Bonga South.
Describing Shell’s new commitments as a “sea change” from several years ago, Mr Sawan thanked the President for providing incremental incentives that are encouraging further investments. He also commended the professionalism of the President’s team, saying it has bolstered confidence among Shell and its partners.
At the meeting, President Tinubu approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga South West deep offshore oil project. He also directed his Special Adviser on Energy, Mrs Olu Arowolo-Verheijen, to facilitate the gazette of the incentives in line with Nigeria’s existing legal and fiscal frameworks.
“These incentives are not blanket concessions,” President Tinubu 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.”
