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The chief executive of Shell Plc said the company is considering up to $20 billion in additional investment in Nigeria, according to the presidency.
Presidential spokesman Bayo Onanuga said in the statement on Sunday that Shell CEO Wael Sawan made the statement during a meeting with President Bola Tinubu at the Presidential Villa in Abuja.
According to the statement, Sawan said Shell and its partners were prepared to invest around $20 billion in offshore energy projects if they reach a final investment decision, adding that about half of the amount would be capital investment.
“We have really been in a space where we are very keen to invest in Nigeria. But I would say this has not always been the case,” Sawan was quoted as saying.
“Your leadership and your vision have created an investment climate over the last few years that, I will be very honest with you, propelled us to invest, in particular, also as we compare to other investments around the world.”
Sawan said Shell has recently invested about $5 billion in the Bonga North offshore project, around $2 billion in other hydrocarbon assets, and gas projects linked to Nigeria LNG.
He said Shell has also increased its interest in OML 118, the Bonga block, following the acquisition of assets sold by TotalEnergies.
“Total Energies was selling, so we bought it because we want to deepen further,” he said.
According to the statement, Sawan said Shell is working on the proposed Bonga South West deep offshore oil project, which could attract around $20 billion in foreign direct investment if it reaches a final investment decision.
“But that, we think, is not enough. We think there is more to invest here, and we understand the vision that you have for the country. And so we are indeed working on a project, Bonga Southwest, that could, if we reach an FID stage, see us, with our partners, invest around $20 billion in foreign direct investment, half of which will be capital,” he was quoted as saying.
He added that other projects, including Bonga South, remain under consideration, stating, “We still see opportunities like Bonga South, which is further in the funnel, to be able to continue to invest.”
Sawan called Shell’s recent pledges a “sea change” from a few years ago, when the company was reducing its investments in the nation.
“Stability in today’s environment will honestly have a premium for corporates because we are investing not for one administration or five or 10 years; we want to invest for 20, 30, 40 years and in the case of Nigeria, for many, many decades,” he added.
During the meeting, President Tinubu approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga South West deep offshore oil project.
The President also directed his Special Adviser on Energy, Mrs Olu Arowolo-Verheijen, to facilitate the gazette of the incentives in line with Nigeria’s existing legal and fiscal framework, according to Onanuga.
“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration,” Tinubu was quoted as saying.
