President Bola Ahmed Tinubu has lauded the announcement of the Final Investment Decision (FID) for the $5 billion Bonga North Deep Offshore Field project by Shell and its partners, describing it as a landmark moment for Nigeria’s energy sector.
In a statement released by the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, President Tinubu emphasized that the development aligns with his administration’s Renewed Hope Agenda, which is centered on attracting investments to catalyze economic transformation and prosperity.
“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. We will continue to offer the necessary support to ensure their success and the realization of Nigeria’s energy potential,” the President said.
A Decade-Long Wait for Deepwater Development
The Bonga North project is Nigeria’s first deepwater oil development in over a decade and signals renewed investor confidence in the country’s energy sector. Located 130 kilometers offshore in Oil Mining Lease (OML) 118, the field holds an estimated 350 million barrels of crude oil.
Shell, holding a 55% operational interest, leads the consortium of partners, including the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.
Mr. Onanuga highlighted that the project is a direct result of President Tinubu’s reforms, which have streamlined regulatory processes, cut operational costs, and introduced competitive fiscal incentives. These measures, along with strategic engagements with global energy stakeholders, have made Nigeria an attractive investment destination.
Transformative Energy Reforms Under Tinubu
The Bonga North project is part of a broader strategy under President Tinubu’s administration to drive energy sector transformation. Earlier in 2024, the Ubeta oilfield in OML 58 also reached FID, revitalizing a dormant resource discovered in 1965. Ubeta is projected to produce 350 million standard cubic feet of gas per day, boosting domestic supply and enhancing Nigeria’s global energy footprint.
Both projects fall under the President’s Blueprint Projects initiative, guided by transformative Presidential Directives 40, 41, and 42, aimed at regulatory clarity, expedited timelines, and incentivized investments in energy.
Ms. Olu Arowolo Verheijen, Special Adviser to the President on Energy, noted that the Bonga North milestone dispels misconceptions about International Oil Companies (IOCs) exiting Nigeria. Instead, it highlights a strategic shift toward deepwater and integrated gas projects, aligning with Tinubu’s vision of positioning Nigeria as a global energy hub.
A Promising Outlook
The Bonga North and Ubeta projects are expected to catalyze further investments across Nigeria’s energy, power generation, transportation, and manufacturing sectors.
“These projects will revolutionize Nigeria’s energy landscape, creating jobs, enhancing power supply, and fostering economic growth. As we approach 2025, we anticipate additional FIDs from both international and domestic players, heralding a new era of opportunity for Nigeria,” Ms. Verheijen remarked.
President Tinubu reaffirmed his administration’s resolve to ensure that Nigeria remains a global leader in energy innovation, leveraging these projects to deliver tangible benefits to its citizens.
