Shell Unveils $20 Billion Investment Plan for Bonga South West Oil Project in Nigeria
Global energy company Shell has announced plans to invest approximately $20 billion in Nigeria’s Bonga South West oil project, marking one of the most significant proposed foreign investments in the country’s oil and gas sector in recent years. The disclosure was made on Thursday by the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bashir Bayo Ojulari, following a meeting between President Bola Ahmed Tinubu and Shell Companies’ Chief Executive Officer, Wael Sawan, at the Presidential Villa in Abuja.
Speaking to State House correspondents, Ojulari said the planned investment would have far-reaching economic implications, particularly in terms of job creation and the revival of dormant industrial assets within the country. According to him, the scale of the Bonga South West project has the potential to stimulate activity across multiple segments of the oil and gas value chain, including fabrication, logistics, engineering, and long-term field operations.
Ojulari attributed Shell’s renewed investment interest to what he described as an improved economic and regulatory environment under the Tinubu administration. He noted that recent policy reforms and incentives introduced by the federal government have helped rebuild investor confidence, especially within the energy sector, which has faced years of declining foreign investment.
“This development shows that investors are beginning to regain confidence in Nigeria’s economy,” Ojulari said. “Mr President has demonstrated a commitment to transparency and consistency, and that has made a tangible difference. These are not just policy statements; they are actions that investors can see and verify.”
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Beyond the announced $20 billion, Ojulari revealed that Shell has also indicated interest in pursuing additional investment opportunities of a similar scale over the next few years, subject to regulatory approvals and favorable market conditions. He explained that Shell’s capacity to attract global capital in a highly competitive energy market is closely tied to its assessment of Nigeria’s leadership, governance standards, and long-term policy direction.
The Bonga South West project itself is expected to involve capital expenditure of close to $10 billion, excluding operating costs, once a Final Investment Decision (FID) is reached. Ojulari emphasized that large-scale projects of this nature typically generate thousands of jobs during the construction phase and sustain employment over decades through operations, maintenance, and supply contracts.
He also highlighted the anticipated revival of Nigeria’s fabrication yards, many of which have remained idle for years due to a lack of major offshore projects. According to him, Nigerian companies have made substantial investments in these facilities, and the return of large projects could restore their viability while increasing local content participation.
“Completing a project like this means sustained employment over a 20 to 25-year field life,” Ojulari said. “Operating expenditure supports suppliers, skilled manpower, and maintenance services. This is not a short-term boost but a long-term economic engagement.”
Ojulari further disclosed that Shell’s recent activities in Nigeria already reflect renewed confidence. He cited the successful completion of Shell’s divestment of its onshore joint venture assets to Renaissance, as well as previous investment decisions totaling over $7 billion, including funding for the Bonga North development and gas-related shallow-water projects.
As concession holder for Nigeria’s production sharing contracts with international oil companies such as Shell, Chevron, ExxonMobil, and TotalEnergies, NNPCL, Ojulari said, remains responsible for ensuring that investment assumptions are credible and aligned with national interests before final approvals are granted.
While the announcement has generated optimism among stakeholders, industry observers note that the proposed $20 billion investment remains subject to final investment decisions, timelines, and regulatory clearances. Nonetheless, the development signals renewed engagement between Nigeria and major international energy investors at a time when global competition for capital remains intense.