Shell Announces $5bn Investment Boost for Nigeria’s Offshore Oil

• Shell to invest $5 billion in Nigeria’s Bonga North oil project.
• This investment aims to address Nigeria’s recent challenges of falling oil production and theft.
• President Tinubu prioritizes expanding oil and gas production.

Shell has disclosed plans for a substantial $5 billion investment in an offshore oil opportunity in the country. This announcement follows a closed meeting between Shell Group management, led by Zoe Yujnovich, the director of Shell’s global integrated gas and upstream, and Nigerian President Bola Tinubu.

Highlighting Shell’s pivotal role in Nigeria’s energy landscape, President Tinubu expressed optimism about the company’s commitment to the Bonga North oil project. Yujnovich emphasized the immediacy of the investment, stating, “I am keen to make that investment as soon as possible. We want to continue and build a pipeline of new investments in Nigeria.”

The infusion of $5 billion into the Bonga North oil project is poised to address the challenges faced by Nigeria’s economy in recent years, characterized by falling oil production due to underinvestment, crude oil theft, and pipeline vandalism. In September 2022 alone, the country suffered a loss of 470,000 barrels of crude oil per day, amounting to nearly $700 million monthly, attributable to oil theft.

President Tinubu, who assumed office in February, has prioritized the expansion of Nigeria’s oil and gas production, aiming to rectify inefficiencies and combat theft in the sector inherited from the previous administration. His administration is keen on attracting foreign direct investment to stimulate economic growth, job creation, and capitalize on the nation’s vast energy resources.

The investment announcement by Shell aligns with Tinubu’s vision for Nigeria as a hub for large-scale investments. Despite concerns from environmentalists regarding stranded assets in oil and gas-rich African states, Tinubu remains confident in removing bottlenecks to attract foreign investments.

The move also coincides with Tinubu’s efforts to showcase Nigeria’s investment opportunities on the global stage. At the G20 platform in India this September, he spoke about attracting global capital to key labor-intensive sectors and resolving investment-related issues to bolster the country’s revenue.

As Nigeria strives to overcome economic challenges and capitalize on its energy potential, Shell’s significant investment is poised to play a crucial role in revitalizing the nation’s offshore oil sector and fostering sustainable growth.

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