- Safiu Kehinde
President Bola Ahmed Tinubu has hailed Shell and its partners over the landmark development of Bonga North Deep Offshore Field, Nigeria’s first deepwater oil project in over a decade.
Tinubu in a statement issued on Monday by his Special Adviser on Information and Strategy, Bayo Onanuga, lauded the project which Shell in partnership with the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni, developed under the Final Investment Decision (FID).
This, according to Onanuga, underscored the transformative impact of the President’s policies and reforms in attracting investments in the oil and gas sector.
Tinubu in his remark held that the completion of the project affirmed the success of his government’s efforts in realisation of Nigeria’s energy potential.
“The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people. 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 realisation of Nigeria’s energy potential.” He said.
Onanuga further disclosed that an estimate of $5 billion was invested in the Bonga North oilfield, located 130 kilometres offshore in Oil Mining Lease (OML) 118 and is expected to yield approximately 350 million barrels of crude oil.
The FID, according to him, signaled renewed confidence in Nigeria’s energy sector and demonstrated the effectiveness of the Tinubu administration’s strategic focus on engendering a robust and competitive investment climate.
He also described President Tinubu’s strategic engagement with global energy stakeholders as being instrumental in this renewed wave of investments.
“In July 2023, at the first of several high-level meetings with Shell’s global leadership, President Tinubu declared, “We are open for business and serious about creating a stable, predictable, and investor-friendly environment.”
“Presidential Directives issued in early 2024 reinforced this commitment by fast-tracking regulatory approvals, reducing operational costs, and introducing competitive fiscal incentives.
“The Bonga North project is the second of the blueprint projects President Bola Ahmed Tinubu selected to drive the implementation of the transformative Presidential Directives 40, 41, and 42 issued in the first quarter of 2024.
“These directives, aimed at enhancing regulatory clarity, accelerating project timelines, and incentivising investment in Nigeria’s energy sector, have yielded remarkable results. Earlier this year, the Ubeta oilfield (OML 58), the first blueprint project under this initiative, achieved a Final Investment Decision (FID) through a partnership between TotalEnergies and NNPC Limited. Dormant since its discovery in 1965, the Ubeta project will produce 350 million standard cubic feet of gas per day, bolstering domestic supply and expanding Nigeria’s presence in the global energy market.
“With both blueprint projects now achieving FID, the success of these initiatives underscores the effectiveness of the President’s strategic vision for Nigeria’s energy future.” Onanuga wrote.
Also commenting on the Bonga North, Olu Arowolo Verheijen, Special Adviser to the President on Energy, stated that the development dispelled the misconceptions about International Oil Companies leaving Nigeria.
“The Bonga North FID dispels the 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, which align with President Tinubu’s vision of transforming Nigeria into a global energy hub. The divestments from onshore operations create opportunities for local oil and gas companies to expand and thrive, building a strong foundation for Nigeria’s energy future.” She said.
Verheijen further noted: “The success of Bonga North and Ubeta demonstrates the efficacy of the reforms and directives championed by the President. 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.”