Nigeria’s President Bola Tinubu has successfully reinforced the country’s investment appeal, welcoming Shell Plc’s CEO, Wael Sawan, to the Presidential Villa in Abuja for high-level talks on expanding the energy giant’s footprint in the country. During the meeting, Sawan lauded President Tinubu’s leadership, citing the stable and investor-friendly environment as a key reason for Shell’s renewed confidence in Nigeria.
Shell, alongside its partners, is set to invest an additional $20bn in the country, with projects spanning deep offshore oil exploration and gas initiatives. Recent investments include $5bn in Bonga North, $2bn in the HI project, and contributions to the Nigeria LNG project. Sawan emphasized that these investments reflect Shell’s long-term commitment to Nigeria, underpinned by decades-long planning rather than short-term gains.
Highlighting the company’s strategic acquisitions, Sawan explained that Shell has strengthened its position in OML 118, including the Bonga Block, following the purchase of assets from TotalEnergies. The proposed Bonga Southwest deep offshore project alone could attract up to $20bn in foreign direct investment, with half allocated to capital expenditure and the other half to operational spending within Nigeria. He described this as a “sea change” from previous years when the corporation was scaling back its investments in the country.
President Tinubu welcomed Shell’s commitments, approving the gazetting of targeted, investment-linked incentives to support the Bonga Southwest project. These incentives, designed within Nigeria’s existing legal and fiscal frameworks, focus on new capital, incremental production, local content delivery, and in-country value addition. The President directed his Special Adviser on Energy, Mrs. Olu Arowolo-Verheijen, to facilitate the formalization of these incentives promptly.
Concluding the meeting, Tinubu underscored the administration’s expectation for the Bonga Southwest project to reach a Final Investment Decision within his first term. Sawan praised the professionalism of the President’s team, noting that their efficiency and commitment have strengthened Shell’s confidence to continue investing in Nigeria for many decades, further solidifying the country’s position as a leading destination for global energy investment.
source: punch