President Bola Tinubu has approved targeted incentives to revive the long-delayed Shell Bonga Southwest project. The $5 billion deep-offshore oil development has stalled for over a decade. Tinubu announced the decision during a meeting at the State House in Abuja with Shell’s global CEO, Wael Sawan.
Presidential Spokesperson Sunday Dare confirmed the move in a statement on Thursday. He said the incentives aim to unlock jobs and foreign exchange from the project and other deep-water developments. Tinubu also directed his Special Adviser on Energy, Olu Verheijen, to fast-track the gazetting of these measures. They will align with Nigeria’s legal and fiscal rules, including the Petroleum Industry Act (PIA) of 2021.
The Shell Bonga Southwest project lies about 120 kilometers offshore. It sits in water deeper than 1,000 meters. At peak, it could produce 150,000 barrels of oil per day. Experts also note its strong potential for gas output.
Previous governments failed to agree with Shell on fiscal terms. The company sought viable conditions for such a capital-intensive venture. Global oil price swings and Nigeria’s tough investment climate added to the delay.
Now, Tinubu says the new incentives are “disciplined, targeted, and globally competitive.” He stressed they are not blanket giveaways. Instead, they link directly to new investment and production. “They focus on fresh capital, local content, and value added in Nigeria,” he explained.
He set a clear goal: the project must reach a Final Investment Decision (FID) before his first term ends. He highlighted its economic promise—thousands of jobs, major foreign exchange inflows, and steady government revenue.
Additionally, the project will boost Nigerian involvement in offshore engineering, fabrication, and energy logistics. Tinubu reaffirmed his commitment to policy stability, clear regulations, and faster approvals. He said these reforms are key to restoring investor confidence.
He pointed out that Shell and its partners have already invested nearly $7 billion in Nigeria over the past 13 months. Much of this went into the Bonga North and HI projects. “This proves our reforms are working,” he said.
In response, Shell CEO Wael Sawan praised Nigeria’s improved business environment. “We now see Nigeria as a reliable place for long-term energy investment,” he said.
The original Bonga field began production in 2005. It was Nigeria’s first deep-water oil project. Reviving its southwest extension could mark a turning point—not just for oil, but for the entire economy. With these incentives in place, the Shell Bonga Southwest project may finally move from promise to reality.
