The Special Adviser to President Bola Tinubu on Energy, Mrs Olu Arowolo Verheijen, has lauded Shell’s announcement of its Final Investment Decision (FID) on the $5 billion Bonga North deepwater project.

In her reaction shared on X, Verheijen explained the significance of this development, Nigeria’s first deepwater oil project in over a decade, as a testament to the success of President Bola Ahmed Tinubu’s energy reforms.

“President @officialABAT welcomes this landmark development, Nigeria’s first deepwater oil project in over a decade.

“This FID on Bonga North, and the FID on Ubeta earlier in 2024, both demonstrate the efficacy of the oil and gas reforms and directives championed by the President.

“These projects will trigger broader investments to revolutionise Nigeria’s power generation, transportation, and manufacturing sectors.

“In 2025 we anticipate further FIDs from international and domestic players. A new era of growth and opportunity for Nigeria!”

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The Bonga North project, operated by Shell Nigeria Exploration and Production Company Limited (SNEPCo), involves the development of 16 wells (8 production and 8 water injection wells), significant upgrades to the Bonga Floating Production Storage and Offloading (FPSO) facility, and the deployment of new subsea hardware.

With an estimated recoverable resource of over 300 million barrels of oil equivalent (boe), Bonga North will sustain production at the Bonga facility, reaching a peak output of 110,000 barrels of oil per day. First oil is expected before the end of the decade.

Verheijen emphasized that these developments align with President Tinubu’s strategic vision to position Nigeria as a global energy hub.

She noted the pivotal role of international oil companies (IOCs).

“The Bonga North FID dispels misconceptions about IOCs leaving Nigeria. Instead, we are witnessing a strategic pivot of IOCs-powered capital and technical capacity to deepwater and integrated gas projects, which align with President Tinubu’s vision of transforming Nigeria into a global energy hub.”

She further added that the success of the Ubeta and Bonga North projects will catalyze further investments, with broad implications for Nigeria’s economy:

“These projects demonstrate the efficacy of the reforms and directives championed by the President. They will revolutionise Nigeria’s power generation, transportation, and manufacturing sectors.

“We look ahead to 2025 with anticipation of further FIDs that will usher in a new era of growth and opportunity for Nigeria.”