Shell’s $5 Billion Bonga Southwest Project Gets Presidential Approval to Boost Jobs and Investment

President Bola Tinubu has given the green light for targeted incentives to finally unlock Shell’s long-delayed $5 billion Bonga South-West deep-offshore oil project. The President also directed his Special Adviser on Energy, Olu Verheijen, to facilitate the official gazetting of the incentives, ensuring they align with Nigeria’s legal and fiscal frameworks, including the Petroleum Industry Act 2021.

The Bonga Southwest project, located about 120 kilometers offshore in water depths exceeding 1,000 meters, has been stalled for more than a decade due to fiscal disagreements between the federal government and Shell Nigeria Exploration and Production Company, alongside its joint venture partners. The project is expected to reach peak production of 150,000 barrels of oil per day and holds significant gas production potential.

Announcing the approval, Tinubu described the incentives as “disciplined, targeted, and globally competitive,” stressing that they are “ring-fenced and investment-linked” to encourage new capital, incremental production, and strong local content delivery. He emphasized that the project must reach a Final Investment Decision within his administration’s first term, highlighting its strategic importance for jobs, foreign exchange, and government revenue.

The President also noted that Bonga Southwest would enhance Nigerian participation in offshore engineering, fabrication, logistics, and energy services. Tinubu praised Shell and its partners for investing nearly $7 billion in Nigeria over the past 13 months, particularly in the Bonga North and HI projects, describing this as proof that the country’s reforms are improving investor confidence.

Shell CEO Wael Sawan welcomed the development, saying Nigeria’s investment climate has improved remarkably under the Tinubu administration. He expressed growing confidence in the country as a destination for long-term investment. The Bonga field, operated by Shell, originally commenced production in 2005 as Nigeria’s first deep-water development, and the new project promises to further cement Nigeria’s role in global offshore energy.

source: punch