Tinubu secures massive $20 billion Shell Deal for Deepwater Nigeria

By Kazeem Ugbodaga

President Bola Tinubu has secured a significant vote of confidence in Nigeria’s oil and gas sector, with Shell announcing plans for a potential $20 billion investment in the long-delayed Bonga South West deepwater oilfield, following high-level discussions and targeted government incentives.

Special Adviser to the President on Media and Public Communication, Sunday Dare, highlighted the development in a post on X, describing it as a “$20 billion dollars handshake” sealed by the President.

He framed the commitment as “another major plus for this administration and for Nigeria’s oil sector,” tagging President Tinubu, the All Progressives Congress (APC), and other key figures.

The announcement stems from recent engagements between President Tinubu and Shell’s Global CEO Wael Sawan.

During the meeting, Sawan outlined Shell’s interest in advancing the Bonga South West project, which could involve up to $20 billion in combined investment from Shell and its partners.

The project, located offshore in Nigeria’s deep waters, holds estimated recoverable reserves of around 820 million barrels and has the potential to deliver peak production of up to 220,000 barrels per day, with some projections targeting 150,000–220,000 bpd depending on final scope.

To accelerate progress on this and other deep offshore developments, President Tinubu approved the gazetting of “investment-linked” incentives specifically tailored to the Bonga South West field.

These measures aim to unlock job creation, foreign exchange inflows, and sustained production growth amid Nigeria’s efforts to revitalize its upstream sector and attract fresh capital after years of stalled projects due to fiscal uncertainties and global energy transitions.

The Bonga South West field, discovered in 2001 and part of the broader Bonga complex operated by Shell, has faced repeated delays. A final investment decision (FID) is now targeted for 2027, with President Tinubu expressing expectations for sanction within his administration’s first term to maximize economic benefits.