Shell Petroleum Development Company (SPDC) and its subsidiaries in Nigeria are planning to invest up to $20 billion in the Bonga South West deepwater oil project. The move signals renewed foreign investor confidence in Nigeria’s oil and gas sector. The plan was disclosed last week by the group chief executive officer of the Nigerian National Petroleum Company Limited (NNPCL), Bashir Bayo Ojulari, after President Bola Tinubu received Shell Companies’ chief executive officer, Wael Sawan, at the Presidential Villa in Abuja.
Ojulari said the proposed investment would have far-reaching economic benefits, including job creation and the revival of long-idle local fabrication yards. According to Ojulari, the improved investment climate under the Tinubu administration has restored confidence among international oil companies. “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,” Ojulari said.
The NNPCL boss revealed that Shell also indicated plans to pursue an additional $20 billion worth of investment opportunities in Nigeria over the next few years, citing confidence in the government’s transparency and commitment to reforms. He explained that the oil giant had already begun discussions around the Bonga South West project as its next major final investment decision (FID), noting that the development would require close to $10 billion in capital expenditure, excluding operating costs.
