Oil giant Shell Companies in Nigeria on Thursday announced plans to invest US$20 billion in the Bonga South West oil project.
NNPCL Group Chief Executive Officer Bashir Bayo Ojulari disclosed this while speaking with State House correspondents after President Bola Tinubu received in audience Shell Companies CEO Wael Sawan at the Presidential Villa, Abuja.
The NNPCL boss said the US$20 billion investment would have a ripple effect on the economy, creating jobs and resuscitating moribund fabrication yards.
Chief Ojulari said the economic climate established by President Tinubu’s administration had restored investor confidence.
He added: “I think what this has shown is that we’re seeing more confidence in Nigeria’s economy from investors. Mr President has also committed to continuing to explore opportunities as they arise, ensuring Nigeria’s investment environment—particularly in the oil and gas industry—remains dynamic.”
He continued: “Shell also committed to the President to pursue another US$20 billion in opportunities over the next couple of years. They indicated that their ability to do this—and to attract global capital amid fierce competition—stems from the confidence they have in the leadership Mr President has demonstrated.
“Not just talked about, but in terms of what they can touch and feel, around transparency and commitment to Mr President’s agenda. To that extent, Shell also began discussing the next project they’re eyeing for FDI (Final Investment Decision)
the Bonga South West project. That project involves capital investment of close to US$10 billion, plus operating expenses.
“When we talk about these big numbers, we need to clarify what they mean: more jobs from construction, giving Nigerians ample opportunities to participate. Most of our fabrication yards—closed for years due to a lack of projects—will come back to life. Nigerians have made huge investments in those yards, which have lain idle for far too long.
“Apart from the project phase, completing it means employment for the next 20 to 25 years over the field’s life. That’s where operating expenditure comes in—for suppliers of materials, manpower, and maintenance activities. It’s a huge undertaking, which is why Shell’s overall chairman came himself this time to make those commitments directly to Mr President.
“As NNPCL, as concession holder for the Nigerian PSCs with international investors like Shell, Chevron, ExxonMobil, and TotalEnergies, our role is to work with them and other parts of government to create solutions and proposals for approval.
“Our responsibility is to be the conscience of the government and Nigerians—ensuring the assumptions and promises made are correct and authentic. We’ve been doing that, and we hope to complete it soon, securing Mr President’s support for the final investment decision.
“Today was about Shell expressing gratitude to Mr President for his administration’s transparency and personal commitment to the investment climate, while showing their own commitment to continued investment in Nigeria.”
He noted that in just one-and-a-half years, Shell had completed the transaction transferring its onshore Joint Venture assets to Renaissance, demonstrating to the world Tinubu’s commitment to enabling investor entry.
“That brought confidence to the international community, including Shell. Having completed that divestment, Shell took a final investment decision of US$5 billion for Bonga North development. Subsequently, they approved another US$2 billion for the shallow-water feed—’Hi’ for gas development. Overall, since Mr President announced incentives, Shell alone has invested over US$7 billion.”
