In a major boost to Nigeria’s energy sector, President Bola Ahmed Tinubu has welcomed Shell and its partners’ announcement of the Final Investment Decision (FID) on the Bonga North Deep Offshore Field. This groundbreaking project, valued at approximately $5 billion, marks Nigeria’s first deepwater oil development in over a decade and underscores the success of President Tinubu’s reforms aimed at attracting investments.
Located 130 kilometers offshore within Oil Mining Lease (OML) 118, the Bonga North field is estimated to produce 350 million barrels of crude oil. Shell, holding a 55% operational interest, leads a consortium that includes the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.
President Tinubu hailed the FID as a testament to the administration’s strategic efforts to rejuvenate the sector. “The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people. Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts,” the President said, emphasizing the government’s commitment to supporting the project’s success.
Since taking office, President Tinubu has prioritized creating a stable, predictable, and investor-friendly environment for global stakeholders in the energy industry. In July 2023, during high-level meetings with Shell’s global leadership, the President declared Nigeria “open for business.” His administration introduced Presidential Directives in early 2024 that streamlined regulatory approvals, reduced operational costs, and provided competitive fiscal incentives.
The directives, known as Presidential Directives 40, 41, and 42, have been instrumental in accelerating key projects. Earlier this year, the Ubeta oilfield (OML 58) achieved FID under a partnership between TotalEnergies and NNPC, marking a major milestone for the energy sector. The Ubeta project, dormant since its discovery in 1965, is set to produce 350 million standard cubic feet of gas daily, bolstering Nigeria’s domestic energy supply and export capacity.
Ms. Olu Arowolo Verheijen, Special Adviser to the President on Energy, described the Bonga North project as a turning point: “The Bonga North FID dispels misconceptions about International Oil Companies leaving Nigeria. Instead, we see a strategic pivot to deepwater and integrated gas projects, aligning with President Tinubu’s vision of transforming Nigeria into a global energy hub.”
Ms. Verheijen highlighted the broader implications of the President’s reforms, predicting significant investments in power generation, transportation, and manufacturing sectors. “These projects showcase Nigeria’s ability to leverage capital and expertise, setting the stage for a new era of growth and opportunity,” she said, noting expectations for further FIDs in 2025.
The Bonga North FID underscores the renewed confidence of international investors in Nigeria’s energy potential. As Shell and its partners embark on this landmark project, the Tinubu administration’s policies continue to position the country as a leader in global energy innovation.
Special Adviser on Information and Strategy, Bayo Onanuga, emphasized the administration’s commitment to ensuring these developments benefit all Nigerians. “The transformative impact of these projects will be felt across sectors, driving prosperity and economic growth for our nation,” he stated.
With the success of both the Bonga North and Ubeta projects, Nigeria is poised to become a powerhouse in the global energy market, reinforcing its role as a critical player in the evolving energy landscape.
