KEY POINTS
- Shell’s $5bn investment in the Bonga North Offshore field is the largest commitment since the 1996 discovery.
- Just last month, TotalEnergies invested $500m into Nigeria’s upstream gas field.
- Tinubu’s reform has given the IOCs the confidence to channelize their strategic investments.
President Bola Tinubu’s economic policies have attracted Shell’s $5 billion Final Investment Decision (FID) for the Bonga North Offshore field, commends the Democratic Front (TDF).
The group found the development as one which attests to the allure of Nigeria to International Oil Companies (IOCs) in the midst of global uncertainties.
In a joint statement co signed by TDF Chairman Mallam Danjuma Muhammad and Secretary Chief Wale Adedayo, the group added that Shell’s investment is a testament that Tinubu’s reforms in and the commitment to create an investment friendly environment is yielding result.
“The $5billion commitment by Shell is further evidence of the success of Presidential Directives 40, 41, and 42 which have the effect of fast-tracking regulatory approvals, reducing operational costs as well as providing fiscal incentives in the oil and gas sector,” the statement said.
A boost to Nigeria’s oil and gas sector
The Bonga North field was projected to produce 350 million barrels ofcrude oil, which TDF said demonstrated ‘transformative’ potential for the investment. Nigeria will become Africa’s largest oil producer, increase oil production, and increase its revenue base.
The group also noted earlier successes made under Tinubu’s administration including TotalEnergies’ $500 million investment in the Ubeta upstream gas field (OML 58). The project will generate 350 million standard cubic feet of gas per day for Nigeria to stand out as a force in the global gas industry.
TDF commended Tinubu’s pro-business stance, saying the reforms had swept away investment barriers and reduced the risks to doing business. The group expressed hope that more IOCs would leverage these fiscal incentives to also come on stream, further boosting Nigeria oil and gas sector.
TDF concluded, stating, “Shell’s commitment endorses Nigeria’s reformed investment ecosystem and marks a step towards long-term economic growth.”
