President Bola Tinubu has commended Shell and its partners for making the Final Investment Decision (FID) on the Bonga North Deep Offshore Field, marking a significant milestone in Nigeria’s energy sector. This development, the country’s first deep water oil project in over ten years, reflects the success of the Tinubu administration’s policies aimed at attracting foreign investments to revitalize the oil and gas industry.
In a statement by Bayo Onanuga, the President’s special adviser on Information and Strategy, Tinubu celebrated the project as a cornerstone of his administration’s Renewed Hope Agenda, designed to transform the Nigerian economy and improve the lives of citizens. He noted that the Bonga North FID aligns with his broader vision for energy sector reforms. “We designed our policies and reforms from the start of my administration to achieve this goal,” the President remarked. Shell’s commitment, he added, demonstrates the success of these efforts and affirms Nigeria’s potential as a reliable destination for global energy investments. He further pledged unwavering support to ensure the project’s success.
The President’s active engagement with major energy stakeholders has played a crucial role in this resurgence of interest in Nigeria’s energy sector. During a meeting with Shell’s global leadership in July 2023, President Tinubu emphasized that Nigeria was “open for business” and committed to creating a stable, predictable, and investor-friendly environment. This commitment was formalized through Presidential Directives issued in early 2024, which streamlined regulatory processes, reduced operational costs, and introduced competitive fiscal incentives to attract investors.
The Bonga North project is a key component of a series of transformative initiatives driven by the Presidential Directives 40, 41, and 42. These directives, launched in the first quarter of 2024, aim to enhance regulatory clarity, expedite project approvals, and boost investments in Nigeria’s energy sector. The Bonga North initiative follows closely on the heels of the successful revival of the Ubeta oilfield (OML 58), another significant blueprint project under Tinubu’s directives.
The Ubeta oilfield, dormant since its discovery in 1965, reached FID earlier this year through a partnership between TotalEnergies and NNPC Limited. The project is expected to produce 350 million standard cubic feet of gas daily, significantly boosting domestic supply and reinforcing Nigeria’s position in the global energy market. Both Ubeta and Bonga North highlight the success of Tinubu’s strategic framework, showcasing Nigeria’s ability to attract substantial investments in the energy sector.
The Bonga North Deep Offshore Field, led by Shell and its partners, is set to accelerate Nigeria’s hydrocarbon output. Its progress symbolizes the government’s vision of an energy sector that fosters both domestic and international economic opportunities. Tinubu’s policies have effectively reinvigorated investor confidence by addressing long-standing operational bottlenecks and aligning Nigeria’s energy strategies with global demands.
As part of the government’s reforms, regulatory agencies and stakeholders were directed to work collaboratively to ensure the timely implementation of key energy projects. These efforts have created a conducive environment for investments and set the stage for sustained energy sector growth.
Governor Babagana Zulum of Borno State also hailed the President’s vision, applauding the energy sector reforms as a testament to Nigeria’s growing capacity to drive technological advancement and economic progress. Zulum noted that these initiatives would significantly enhance job creation and bolster the national economy.
Additionally, Antolovic Rado, CEO of Drydocks World, expressed optimism about the sustainable impact of the Bonga North project. He highlighted the role of advanced technologies and efficient management systems in ensuring the project’s long-term success.
The achievements of Bonga North and the Ubeta oilfield underscore the effectiveness of President Tinubu’s strategic energy policies. By blending local and international expertise, Nigeria has demonstrated its readiness to take on transformative projects that not only boost oil and gas production but also contribute to the country’s overall economic resilience.
With both blueprint projects achieving FID, Tinubu’s administration has set a strong foundation for the future of Nigeria’s energy sector. These initiatives highlight the potential of well-implemented reforms to attract high-value investments, stimulate economic growth, and position Nigeria as a major player in the global energy market.