Global Chief Executive Officer of Shell Plc, Mr Wael Sawan, has explained that the company’s plan to invest a fresh $20 billion in Nigeria’s oil and gas sector is driven largely by the investment climate created under President Bola Ahmed Tinubu’s administration.
Sawan spoke during a meeting with President Tinubu at the State House, Abuja, where he said Shell is deepening and expanding its investments in Nigeria due to what he described as robust and bold leadership.
According to him, Nigeria has emerged as one of the countries currently attracting significant investment from global oil companies under the Tinubu administration.
At the meeting, President Tinubu approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga South West deep offshore oil project being developed by Shell and its partners. The President also directed his Special Adviser on Energy, Mrs Olu Verheijen, to ensure the incentives are gazetted in line with existing legal and fiscal frameworks.
Highlighting Shell’s recent investments, Sawan disclosed that the company has committed about $5 billion to Bonga North, $2 billion to the HI project, and additional investments in gas supply projects to the Nigeria Liquefied Natural Gas (NLNG) facility.
“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,” Sawan said.
“Your leadership and your vision have created an investment climate over the last few years that, very honestly, propelled us to invest, especially when we compare Nigeria to other investment destinations around the world.”
He stressed that stability has become a premium factor for long-term investors, noting that Shell plans investments spanning 20 to 40 years and beyond.
Commenting further on Shell’s expanding footprint, Sawan said the company has increased its stake in OML 118 (Bonga Block), following its acquisition of interests previously held by TotalEnergies.
“We think that is not enough. There is more to invest here, and we understand the vision that you have for the country,” he said.
Sawan explained that the proposed Bonga South West project, once it reaches Final Investment Decision (FID), could attract about $20 billion in foreign direct investment, with roughly half going into capital expenditure and the rest into operational spending within Nigeria.
He described the project as potentially one of the biggest energy developments in the world, marking a significant turnaround from Shell’s earlier posture of scaling back investments in the country.
“This is a sea change from where we were several years ago,” he noted, thanking President Tinubu for providing the incentives that have given Shell and its partners confidence to proceed.
Sawan also praised the President’s economic team, describing them as world-class professionals, whose competence has strengthened investor confidence.
“That professionalism gives us and our partners the confidence to continue investing in Nigeria,” he concluded.
