Shell CEO: Why Oil Giant Is Investing Additional $20bn in Nigeria

Lauds Tinubu’s leadership, visionDeji Elumoye in AbujaGlobal Chief Executive of Shell Plc, Mr Wael Sawan, has explained why the company is planning to invest additional $20 billion in the nation’s oil and gas sector, lauding President Bola Tinubu’s for creating a healthy climate for investments to thrive.Speaking at a meeting with Tinubu at the State House, Sawan said Shell is deepening and expanding its investments in Nigeria and the company is ready, alongside its partners, to invest additional $20 billion primarily because of the robust and bold leadership of the President.

He emphasised that Nigeria, under the Tinubu administration, is one of the countries attracting significant investment from global oil companies.Highlighting Shell’s recent investments, such as $5 billion in Bonga North, $2 billion in HI, and the gas project to NLNG, Sawan stated that the corporation remains committed to long-term investments in the country, underscoring the stable economic environment.“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. 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, as we compare to other investments around the world.

“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 stated.Commenting on the expansion of Shell’s investments in Nigeria, Sawan said the company has also deepened its interest in Block OML 118, the Bonga Block.

He added: “Total Energies was selling, so we bought it because we want to deepen it further. 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. The other half will be the operating expenses and the like that will come into the country.”

According to him, this will be one of the biggest energy projects in the world, highlighting  opportunities like Bonga South. Sawan described Shell’s new commitments as a “sea change” from where it was several years ago, when the corporation was pulling back on investments in the country.“Your Excellency, to Bonga Southwest, that huge project, I would like to thank you. I want to thank you for the leadership you have shown there to be able to provide the incremental incentives that are now getting us line of sight to an investment in this project with our partners,” the Shell Chief Executive added.

He also commended the President’s team, describing them as outstanding professionals, who are some of the best in the world.“And that leadership, I would also say, has put many of the people that we are working with, your team, are amongst the best that we are dealing with anywhere in the world, and that professionalism allows us to be able to have the confidence, and I would say our partners as well, to have the confidence to continue to invest,” he concluded.

At the meeting, Tinubu approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga South West deep offshore oil project by Shell and its partners.The President also directed his Special Adviser on Energy, Mrs Olu Verheijen, to facilitate the gazette of the incentives in line with Nigeria’s existing legal and fiscal frameworks.