Shell Companies in Nigeria have revealed plans to invest up to $20 billion in the Bonga South West deepwater oil project, signalling renewed foreign investor confidence in Nigeria’s oil and gas sector.
The disclosure was made on Thursday by Bashir Bayo Ojulari, the group chief executive officer of the Nigerian National Petroleum Company (NNPC) Limited, 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 him, 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,” Ojulari said. “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 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.
Ojulari explained that Shell 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.
“When we talk about these big numbers, we need to clarify what they mean: more jobs from construction and opportunities for Nigerians to participate,” he said. “Most of our fabrication yards, closed for years due to a lack of projects, will come back to life.”
He added that beyond the construction phase, the project would generate employment over the next 20 to 25 years, spanning the field’s production life, with sustained demand for local suppliers, manpower, and maintenance services.
Ojulari noted that as concession holder for Nigeria’s production sharing contracts with international partners such as Shell, Chevron, ExxonMobil and TotalEnergies, NNPCL’s role is to work with investors and government agencies to ensure that investment assumptions and commitments are credible.
“Our responsibility is to be the conscience of the government and Nigerians, ensuring the assumptions and promises made are correct and authentic,” he said, adding that efforts were ongoing to secure presidential approval for the project’s FID.
He also highlighted Shell’s recent investments, noting that within 18 months, the company completed the divestment of its onshore joint venture assets to Renaissance, a move he said reinforced Nigeria’s credibility with global investors.
Following that divestment, Shell approved a $5 billion final investment decision for the Bonga North development and a further $2 billion for shallow-water gas projects.
“Overall, since Mr President announced incentives, Shell alone has invested over $7 billion,” Ojulari said.