The Democratic Front (TDF) has hailed Shell’s $5 billion Final Investment Decision (FID) for the Bonga North Deep Offshore field, highlighting it as a testament to Nigeria’s appeal as an investment-friendly destination under President Bola Tinubu’s administration. The announcement was made in a statement jointly signed by TDF Chairman Mallam Danjuma Muhammad and Secretary Chief Wale Adedayo.
The group emphasized that the decision by Shell underscores the confidence International Oil Companies (IOCs) have in Nigeria’s reformed oil and gas sector.
“We join President Bola Tinubu in celebrating Shell’s $5 billion Final Investment Decision (FID) on the Bonga North Offshore Field. This investment is a direct result of the reforms championed by the President through Presidential Directives 40, 41, and 42. These reforms have fast-tracked regulatory approvals, reduced operational costs, and introduced competitive fiscal incentives,” TDF stated.
The group highlighted the broader economic significance of the investment, which includes the Bonga North field’s estimated crude oil reserves of 350 million barrels. This development is expected to boost Nigeria’s oil output, revenue, and its standing as Africa’s largest oil producer.
TDF also pointed to other strategic investments, such as TotalEnergies’ $500 million investment in the Ubeta gas field, as further evidence of the Tinubu administration’s success in attracting foreign direct investment (FDI) to Nigeria’s energy sector.
“The Ubeta upstream field is projected to produce 350 million standard cubic feet of gas per day upon completion, enhancing Nigeria’s profile as a leading gas producer. This remarkable economic milestone is undeniably tied to President Tinubu’s reform agenda,” the group stated.
A Historic Commitment
The Bonga deepwater field, discovered in 1996 and situated in OML 118 at depths exceeding 1,000 meters, has not seen an investment of this magnitude until now. The $5 billion commitment by Shell reflects renewed confidence in Nigeria’s business environment, driven by reforms aimed at eliminating investment barriers and mitigating business risks.
“Shell’s investment is a testament to President Tinubu’s pro-business approach to governance. It validates the success of reforms that have streamlined operations, provided fiscal incentives, and fostered a more secure investment ecosystem,” TDF added.
Future Investments Anticipated
TDF expressed optimism that more IOCs would capitalize on the fiscal incentives introduced by the Tinubu administration to initiate fresh investments in Nigeria’s oil and gas sector. The group remains confident that these reforms will continue to attract significant FDI, reinforcing Nigeria’s status as a global energy powerhouse.