Shell’s $5bn Bonga Investment: A Landmark Decision for Nigeria, Says TDF
The Democratic Front (TDF) has hailed Shell’s $5 billion Final Investment Decision (FID) for the Bonga North Deep Offshore Field as a testament to Nigeria’s status as a premier destination for international investment.
In a statement jointly signed by its Chairman, Malam Danjuma Muhammad, and Secretary, Chief Wale Adedayo, TDF highlighted the significance of the investment, emphasizing that it reflects the confidence of International Oil Companies (IOCs) in Nigeria’s investment climate.
“We join President Bola Tinubu in celebrating the Final Investment Decision (FID) by Shell on the Bonga North Offshore Field,” the statement read.
The TDF attributed the decision to recent reforms initiated by President Tinubu, particularly the Presidential Directives 40, 41, and 42, which aim to streamline regulatory approvals, lower operational costs, and offer competitive fiscal incentives in the oil and gas sector.
A Boost for Nigeria’s Oil Industry
The group underlined the importance of the Bonga North investment, noting its projected crude oil reserves of 350 million barrels. They expressed optimism that the development would significantly enhance Nigeria’s oil output, bolster revenues, and cement its position as Africa’s leading oil producer.
The statement also sought to dispel misconceptions about IOCs withdrawing from Nigeria, pointing out that strategic investments like Shell’s decision demonstrate renewed interest, driven by the administration’s favorable policies.
TotalEnergies and Other Investments
Citing additional success stories, TDF referenced the $500 million investment by TotalEnergies earlier this year in the Ubeta upstream gas field (OML 58). That project, backed by similar fiscal incentives, is expected to produce 350 million standard cubic feet of gas daily, reinforcing Nigeria’s profile as a major gas producer.
“TDF is confident that more IOCs will leverage the Tinubu administration’s fiscal reforms to make fresh investments in Nigeria’s oil and gas sector,” the statement concluded.
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A Bright Future
The Democratic Front’s endorsement of Shell’s decision aligns with the broader optimism surrounding Nigeria’s oil and gas sector under President Tinubu’s administration. With substantial reforms and strategic incentives in place, the country appears poised for a resurgence in foreign direct investment and a revitalization of its energy sector.
Source: Environ News
