By Moses Ebosele, ebosele@hotmail.com –
Global energy giant, Shell has announced plans to invest up to $20 billion in Nigeria while expanding gas supply to the Nigeria Liquefied Natural Gas (NLNG).
The Chief Executive Officer of Shell Plc, Mr Wael Sawan, disclosed this during a meeting with President Bola Tinubu at the Presidential Villa, Abuja, where he commended the President’s leadership for creating a stable and healthy investment climate that has repositioned Nigeria as a preferred destination for global energy capital.
According to Sawan, Shell is deepening and expanding its operations in Nigeria and is ready, in partnership with other investors, to commit an additional $20 billion in foreign direct investment, driven largely by policy stability, regulatory clarity and the administration’s bold economic reforms.
He noted that Nigeria is currently attracting significant interest from major international oil companies, adding that Shell’s growing investments reflect confidence in the long-term prospects of the country’s oil and gas industry.
Highlighting ongoing projects, Sawan said Shell has invested about $5 billion in the Bonga North project, $2 billion in the HI project, and has also strengthened gas supply investments feeding the NLNG project, reinforcing the company’s commitment to Nigeria’s gas-based industrial growth and energy transition aspirations.
“We have really been in a space where we are very keen to invest in Nigeria. But this has not always been the case. Your leadership and vision have created an investment climate over the last few years that has propelled us to invest, particularly when we compare Nigeria with other investment opportunities around the world,” Sawan said.
He stressed that stability has become a premium factor in global investment decisions, noting that Shell’s strategy is built around decades-long commitments rather than short-term gains.
“We are investing not for one administration or five or 10 years; we want to invest for 20, 30, 40 years and, in the case of Nigeria, for many decades,” he added.
On asset expansion, the Shell CEO revealed that the company has deepened its interest in Oil Mining Lease (OML) 118, the Bonga Block, following the acquisition of additional stakes after TotalEnergies’ divestment.
He said Shell is also advancing plans for the Bonga South West deep offshore project, which could attract up to $20 billion in investment once it reaches Final Investment Decision (FID).
According to him, about half of the proposed investment would be capital expenditure, while the remainder would come in as operating expenses, injecting significant value into the Nigerian economy.
He described the project as potentially one of the largest energy developments globally.
Sawan added that Shell continues to see further opportunities, including the Bonga South project, as part of its long-term investment pipeline in Nigeria.
Describing the new commitments as a “sea change” from previous years when Shell was scaling back investments, Sawan thanked President Tinubu for providing targeted, investment-linked incentives that have improved visibility and confidence around the Bonga South West project.
In response, President Tinubu approved the gazetting of incentives to support the proposed Bonga South West deep offshore oil project and directed his Special Adviser on Energy, Mrs Olu Arowolo-Verheijen, to ensure implementation in line with Nigeria’s existing legal and fiscal frameworks.
“These incentives are not blanket concessions. They are ring-fenced and investment-linked, focused on new capital, incremental production, strong local content delivery and in-country value addition,” the President said.
According to a statement issued by Bayo Onanuga,
Special Adviser to the President
(Information & Strategy), the Shell boss expressed confidence that the Bonga South West project would reach Final Investment Decision within the first term of his administration, reaffirming the government’s commitment to boosting oil and gas investments, expanding gas supply to NLNG and strengthening Nigeria’s position as a leading energy hub in Africa.
