By Jemimah Wellington, JKNewsMedia Reporter
NIGERIA’s ENERGY sector is set to achieve a landmark milestone as Shell and its partners approved a $5 billion investment in the Bonga North Deep Offshore Field.
This project, Nigeria’s first deepwater oil development in over a decade, is expected to produce an estimated 350 million barrels of crude oil.
The Bonga North field, situated 130 kilometres offshore in Oil Mining Lease (OML) 118, represents a collaborative effort involving Shell (55% operational stake), the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.
The Final Investment Decision (FID) reflects growing confidence in Nigeria’s energy policies under President Bola Ahmed Tinubu.
President Tinubu described the project as a testament to his administration’s policies aimed at attracting global investments.
“The Renewed Hope Agenda focuses on creating a stable and investor-friendly climate to transform Nigeria’s economy,” he stated.
Strategic directives issued in 2024 accelerated regulatory approvals and introduced competitive incentives that attracted global energy players.
The Bonga North FID also follows the earlier success of the Ubeta oilfield in Oil Mining Lease 58, approved early this year.
In fact, that project, dormant since its discovery in 1965, was revived through a partnership between TotalEnergies and NNPC, producing 350 million standard cubic feet of gas daily.
Ms. Olu Arowolo Verheijen, Special Adviser to the President on Energy, highlighted the strategic importance of the Bonga North FID: “This milestone shows the confidence of international oil companies in Nigeria’s energy future. It aligns with President Tinubu’s vision of deepwater and integrated gas projects powering the economy.”
Moreover, the administration’s reforms is noted to have shifted focus from onshore operations to deepwater and gas investments, creating opportunities for local oil companies to thrive.
With plans to secure further FIDs by 2025, Nigeria aims to position itself as a global energy hub while delivering tangible benefits to its citizens, as stressed by Bayo Onanuga, Special Adviser to the President on Information & Strategy on December 16, 2024 in a press statement posted on his X handle.
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