Nigeria remains top oil investment destination, says TDF

The Democratic Front (TDF) has said the announcement of a $5 billion Bonga North Deep Offshore Field Final Investment Decision (FID) by Shell is a sign that Nigeria remains an investment-friendly destination.

In a statement, signed by its Chairman, Danjuma Muhammad, and Secretary, Wale Adedayo, TDF noted that the investment was an indication that International Oil Companies (IOCs) still found Nigeria attractive.

“We join President Bola Tinubu in celebrating the Final Investment Decision (FID) by Shell on Bonga North Offshore Field,” the statement read.

It noted that the investment was the outcome of reforms introduced by the President through the Presidential Directives numbers 40, 41 and 42.

The directives were to fast-track regulatory approvals, reduce operational costs and promote competitive fiscal incentives in the oil and gas sector.

The statement said the pertinence of the fresh investment in the sector was not only limited to the value of the investment, but also extended to the field’s potential volume of 350 million barrels of crude oil.

The group said the investment was bound to further raise the nation’s oil output and revenue as well as bolster its position as Africa’s largest oil producer.

It added that Shell’s investment came at a time of misconceptions about IOCs leaving Nigeria when indeed many of them were making strategic investment decisions in response to the administration’s incentives.

“We recall that earlier this year, the Ubeta Upstream Gas Field, also known as OML 58, attracted a $500 million investment from TotalEnergies on account of Tinubu’s fiscal incentives to drive FDIs into the newly transformed oil and gas sector.

“The Ubeta Upstream Field is estimated to produce 350 million standard cubic feet of gas per day when operational and will go a long way to raise the country’s profile as a major gas producer, it added.

According to the statement, TDF is confident that more IOCs will key into the fiscal incentives introduced by the Tinubu administration to make fresh investments in Nigeria’s oil and gas sector.