Shell FID proves Nigeria’s investor appeal, says Lokpobiri

Nigeria’s Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has welcomed the announcement by Shell PLC to proceed with the Final Investment Decision (FID) on Bonga North deep-water project. The project, located off Nigeria’s coast, is expected to sustain production at the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, with recoverable resources estimated at over 300 million barrels of oil equivalent (boe).

Reacting to the development, Senator Lokpobiri noted that the announcement aligns with the federal government’s commitment to revamping Nigeria’s oil and gas sector through strategic reforms and investments.

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“This announcement by Shell is a clear indication that our policies are working. It underscores the confidence investors have in the reforms and enabling environment being fostered under President Bola Ahmed Tinubu’s administration. This project is expected to add 110,000 barrels per day to Nigeria’s production capacity, creating significant economic value for the nation,” he said.

It will be recalled that the Minister had consistently assured Nigerians that major investment announcements would be made before the end of the year. The Shell FID is one of several anticipated investments, and Lokpobiri reiterated the government’s commitment to providing the enabling environment for businesses to thrive.

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“This is just one of many investments we are expecting. The federal government remains steadfast in addressing investor concerns, improving regulatory frameworks, and ensuring that the oil and gas sector continues to attract global players. Our goal is to use such investments to drive economic growth, create jobs, and improve the standard of living for Nigerians,” the Minister added.

The Bonga North project will function as a subsea tie-back to the Shell-operated Bonga FPSO facility, where Shell holds a 55% interest. It represents a major step forward for Nigeria’s energy sector, marking a significant increase in production capacity and enhancing the country’s position as a global energy player.

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Senator Lokpobiri commended Shell for its confidence in Nigeria and assured the company of the government’s support in ensuring the project’s success. He further emphasized that more initiatives are underway to sustain the momentum in attracting investments into the sector.