SHELL Plc has announced plans to invest $20 billion in Nigeria’s deep offshore oil sector, marking a dramatic reversal from years of capital withdrawal and representing one of the largest energy investments globally.
The investment hinges on the Bonga Southwest project, which would deliver $10 billion in direct capital expenditure and another $10 billion in operating costs, Shell CEO Wael Sawan told President Bola Tinubu during a meeting at the Presidential Villa.
The commitment follows recent Shell investments totalling $7 billion, including $5 billion in Bonga North, $2 billion in an unspecified project, and gas infrastructure tied to Nigeria LNG. Shell also acquired Total Energies’ stake in Block OML 118 to expand its position in the Bonga Block.
Sawan credited Nigeria’s improved investment climate under the Tinubu administration for the shift, noting the company had previously been reducing its Nigerian exposure. “This has not always been the case,” Sawan said. “Your leadership and vision have created an investment climate over the last few years that propelled us to invest, in particular as we compare to other investments around the world.”
The Bonga Southwest project requires a Final Investment Decision, which President Tinubu has directed must occur during his first term, ending in 2027. The president approved targeted, investment-linked fiscal incentives tied to new production, local content requirements, and in-country value addition. Special Adviser on Energy Olu Arowolo-Verheijen will oversee the gazetting of the incentives.
Shell identified additional opportunities in Bonga South, suggesting further capital deployment beyond the $20 billion commitment.
The announcements signal renewed confidence in Nigeria’s oil sector after years of production declines, security challenges, and regulatory uncertainty that drove international oil companies to divest Nigerian assets.
