President Bola Ahmed Tinubu has celebrated the Final Investment Decision (FID) by Shell and its partners for the $5 billion Bonga North Deep Offshore Field project, describing it as a transformative step for Nigeria’s energy sector.
The project, the country’s first deepwater oil initiative in over a decade, is projected to yield an estimated 350 million barrels of crude oil. Tinubu attributed this milestone to his administration’s policy reforms aimed at revitalizing Nigeria’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 stated in a press release issued by his Special Adviser on Information and Strategy, Bayo Onanuga.
He commended Shell and its partners, affirming his administration’s commitment to supporting the initiative. “Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts. We will continue to provide the necessary support to ensure their success and the realization of Nigeria’s energy potential,” Tinubu added.
Strategic Partnerships in Deepwater Development
The Bonga North field is located 130 kilometers offshore in Oil Mining Lease (OML) 118 and is operated by Shell, which holds a 55% stake. Partners include the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.
This project reflects renewed confidence in Nigeria’s energy sector, credited to the Tinubu administration’s focus on creating a stable, investor-friendly environment. Presidential Directives issued in early 2024 streamlined regulatory approvals, reduced operational costs, and introduced competitive fiscal incentives, further bolstering investor confidence.
Building Momentum in Energy Investments
President Tinubu’s efforts to attract international investments were underscored during his July 2023 meeting with Shell’s global leadership, where he reiterated Nigeria’s commitment to fostering a predictable business environment.
The Bonga North project is the second major initiative under Tinubu’s “blueprint projects,” following the Ubeta oilfield development in Oil Mining Lease (OML) 58. Dormant since its discovery in 1965, the Ubeta project, led by TotalEnergies and NNPC, is expected to produce 350 million standard cubic feet of gas daily, bolstering domestic supply and enhancing Nigeria’s global energy footprint.
A New Era for Nigeria’s Energy Sector
Presidential Special Adviser on Energy, Ms. Olu Arowolo Verheijen, highlighted the significance of the Bonga North FID, dismissing misconceptions about International Oil Companies (IOCs) leaving Nigeria. “Instead, we are witnessing a strategic pivot of IOC capital and technical expertise to deepwater and integrated gas projects,” she noted.
She also emphasized the broader impact of these reforms, predicting significant investments across Nigeria’s power generation, transportation, and manufacturing sectors. “As we look ahead to 2025, we anticipate further FIDs from both international and domestic players, marking a new era of growth and opportunity for Nigeria,” Verheijen stated.
Sustained Commitment to Energy Leadership
With two landmark projects achieving FID under Tinubu’s leadership, his administration has demonstrated its commitment to establishing Nigeria as a global leader in energy innovation. Verheijen concluded, “The success of Bonga North and Ubeta underscores the efficacy of the reforms and directives championed by the President.”
The Tinubu administration remains resolute in translating these energy sector advancements into tangible benefits for all Nigerians, ensuring a brighter economic future for the country.
 by Shell and its partners for the $5 billion Bonga North){kind=link}