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Shell plans up to $20bn investment in Nigeria through the proposed Bonga Southwest deep-offshore project.
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CEO Wael Sawan cites policy stability and Tinubu’s leadership as key drivers of renewed investor confidence.
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Federal Government gazettes new investment-linked incentives to support major offshore oil developments.
Shell Plc has announced plans to scale up investments in Nigeria, signalling a potential $20 billion foreign direct investment anchored on the proposed Bonga Southwest deep-offshore oil project.
The company’s Chief Executive Officer, Wael Sawan, disclosed this during a meeting with President Bola Ahmed Tinubu in Abuja on Thursday, stating that Nigeria has emerged as one of Shell’s most attractive destinations for capital allocation globally.
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According to Sawan, the proposed Bonga Southwest project, if it reaches a Final Investment Decision (FID), could attract about $20 billion in combined capital expenditure and operational spending, ranking among the world’s largest energy investments.
He explained that roughly half of the projected sum would be direct capital investment, while the remainder would cover operational costs flowing into the Nigerian economy.
The Shell CEO praised Nigeria’s human capital, describing Nigerian professionals as one of the company’s largest talent pools worldwide, with many expected to return home to contribute to national development.
Shell, which has operated in Nigeria’s oil and gas sector for over three decades through its subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), has played a major role in national revenue generation, despite long-standing environmental and legal controversies linked to its Niger Delta operations.
Sawan acknowledged that Shell’s renewed investment appetite was driven by recent improvements in governance and policy consistency, attributing the shift to President Tinubu’s leadership and reform agenda.
He noted that long-term energy projects typically span 20 to 40 years, making political and regulatory stability a critical factor in investment decisions, adding that Nigeria now competes favourably with other global energy destinations.
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On existing commitments, Sawan revealed that Shell invested about $5 billion in the Bonga North project over the past year, alongside an additional $2 billion in gas infrastructure supporting the Nigeria Liquefied Natural Gas (NLNG) project. He also confirmed Shell’s expanded interest in Oil Mining Lease (OML) 118 following asset acquisitions from TotalEnergies.
Beyond Bonga Southwest, Shell disclosed interest in other offshore prospects, including Bolia Chota and Mwadoro, as well as Nigeria’s ongoing oil licensing round. Pre-Front-End Engineering Design (pre-FEED) work has already commenced on Bonga Southwest, with a target FID date of 2027, subject to regulatory approvals and fiscal terms.
In response, President Tinubu reaffirmed the Federal Government’s commitment to transparency, competitiveness and policy consistency, stressing that Nigeria must actively compete with emerging oil producers such as Guyana for global capital.
“There’s no better time to invest than now,” Tinubu said, pledging that approved incentives would be applied consistently and transparently.
Shortly after the meeting, the president approved the gazetting of targeted, investment-linked incentives to support the Bonga Southwest project and similar deep-offshore developments, reinforcing Nigeria’s push to attract large-scale energy investments.
