*The Federal Government notes President Bola Ahmed Tinubu administration鈥檚 strategic engagement with global energy stakeholders has been instrumental in a 聽聽renewed wave of investments, as Shell and its partners announced the Final Investment Decision on the Bonga North Deep Offshore Field in Nigeria

Isola Moses | 绿帽献妻

President Bola Ahmed Tinubu Monday, December 16, 2024, welcomed Shell and its partners’ announcement of the Final Investment Decision (FID) on the Bonga North Deep Offshore Field.

The Federal Government said the milestone attainment as Nigeria’s first deepwater oil project in over a decade had underscored the transformative impact of President Tinubu administration鈥檚 policies and reforms in attracting investments in the oil and gas sector.

The Bonga North oilfield, located 130 kilometres offshore in Oil Mining Lease (OML) 118, represents an impressive estimated $5 billion investment and is expected to yield approximately 350 million barrels of crude oil.

Shell holds the largest operational interest, with 55 percent while its other partners are the Nigerian National Petroleum Company (NNPC) Limited, ExxonMobil, TotalEnergies and Eni.

Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, Monday stated the FID signalled renewed confidence in Nigeria’s energy sector, and further demonstrated the effectiveness of the Tinubu administration’s strategic focus on engendering a robust and competitive investment climate.

Federal Government committed to supporting energy sector: President

Onanuga stated President Tinubu remarked: “The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people.

鈥淲e 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.

鈥淲e will continue to offer the necessary support to ensure their success and the realisation of Nigeria’s energy potential.”

The statement noted President Tinubu’s strategic engagement with global energy stakeholders has been 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 (Q1) 2024.

The Presidential aide further explained the 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, the statement also noted.

The government said with both blueprint projects now achieving FID, the success of these initiatives 鈥渦nderscores the effectiveness of the President’s strategic vision for Nigeria’s energy future.鈥�

Verheijen: Nigeria witnessing strategic pivot of IOCs-powered capital, technical capacity

Speaking on the Bonga North milestone, Ms Olu Arowolo Verheijen, Special Adviser to the President on Energy, said: “The Bonga North FID dispels the misconceptions about International Oil Companies leaving Nigeria.

鈥淚nstead, 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.

鈥淭he 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.”

Ms Verheijen noted:聽 “The success of Bonga North and Ubeta demonstrates the efficacy of the reforms and directives championed by the President.

鈥淭hese projects will trigger broader investments to revolutionise Nigeria’s power generation, transportation, and manufacturing sectors.鈥�

She further said: 鈥淎s we look ahead to 2025, we anticipate further FIDs from international and domestic players, marking a new era of growth and opportunity for Nigeria.”

Onanuga stated the Tinubu administration remains steadfast in 鈥減ositioning Nigeria as a global leader in energy innovation and investment, ensuring that these efforts translate into tangible benefits for all Nigerians.鈥�

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