LAGOS, Jan 23 – Nigeria has approved targeted, investment-linked incentives for Shell’s Bonga South West deepwater oil project, President Bola Tinubu’s office said, as Africa’s largest crude producer seeks to revive investor interest in its offshore energy sector.
The incentives were approved following a meeting between Tinubu and Shell Chief Executive Officer Wael Sawan, and form part of broader regulatory reforms aimed at boosting oil and gas investment and reversing declining production.
“These incentives are not blanket concessions,” Tinubu said in a statement. He said the measures would be ring-fenced and tied specifically to new capital investment, incremental production and strong local content delivery.
Tinubu said he expects the Bonga South West project to reach a Final Investment Decision within the first term of his administration.
Shell took a Final Investment Decision on the Bonga North development in 2024 as part of efforts to sustain output at the Bonga Floating Production Storage and Offloading facility.
Since Tinubu took office in 2023, Shell has invested about $7 billion in Bonga North and other Nigerian projects, according to the presidency.
The president’s special adviser on energy, Olu Arowolo Verheijen, said the meeting reaffirmed Shell’s long-term confidence in Nigeria. In a separate post, she said Shell informed the president of plans to invest an additional $20 billion in the proposed Bonga South West project.
Shell did not immediately confirm the investment figure or provide a timeline for a Final Investment Decision.
Last year, Shell increased its stake in the Bonga oilfield to 65% after acquiring shares from TotalEnergies, underscoring its continued focus on offshore Nigeria after exiting most onshore operations.
