Why We Invested $20bn In Nigeria — Shell CEO

The Chief Executive of Shell Plc, Wael Sawan, has praised President Bola Tinubu’s leadership for creating a healthy climate for investments to thrive and restoring investor confidence.

At a meeting with President Tinubu at the Presidential Villa, Abuja, Mr Sawan said Shell was deepening and expanding its investments in Nigeria, and the company was ready, alongside its partners, to invest an additional $20 billion, primarily because of the robust and bold leadership of the President.

According to a statement by Presidential spokesman, Bayo Onanuga, he emphasised that Nigeria, under the Tinubu administration, was one of the countries attracting significant investment from global oil companies.

Highlighting Shell’s recent investments, such as $5 billion in Bonga North, $2 billion in HI, and the gas project to NLNG, Sawan stated that the corporation is committed to long-term investments in the country, underscoring the stable economic environment.

“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. Your leadership and your vision have created an investment climate over the last few years that, I will be very honest with you, propelled us to invest, in particular, also as we compare to other investments around the world,” he said.

“Stability in today’s environment will honestly have a premium for corporates because we are investing not for one administration or five or 10 years, we want to invest for 20, 30, 40 years and in the case of Nigeria, for many, many decades.”

Speaking on the expansion of Shell’s investments in Nigeria, Mr Sawan said the corporation has also deepened its interest in Block OML 118, the Bonga Block.

“Total Energies was selling, so we bought it because we want to deepen further. But that, we think, is not enough. We think there is more to invest here, and we understand the vision that you have for the country. And so we are indeed working on a project, Bonga Southwest, that could, if we reach an FID stage, see us, with our partners, invest around $20 billion in foreign direct investment, half of which will be capital. The other half will be the operating expenses and the like that will come into the country,” he said.

“This will be one of the biggest, I would say, energy projects in the world.”

Speaking further, he added: “We still see opportunities like Bonga South, which is further in the funnel, to be able to continue to invest.”

Sawan described Shell’s new commitments as a “sea change” from where it was several years ago, when the corporation was pulling back on investments in the country.

“Your Excellency, to Bonga Southwest, that huge project, I would like to thank you. I want to thank you for the leadership you have shown there to be able to provide the incremental incentives that are now getting us line of sight to an investment in this project with our partners,” the Shell Chief Executive thanked the President.

He also commended the President’s team, describing them as outstanding professionals.

“And that leadership, I would also say, has put many of the people that we are working with, your team, are amongst the best that we are dealing with anywhere in the world, and that professionalism allows us to be able to have the confidence, and I would say our partners as well, to have the confidence to continue to invest,” he concluded.

At the meeting, Tinubu approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga South-West deep offshore oil project by Shell and its partners.

The President also directed his Special Adviser on Energy, Mrs Olu Arowolo-Verheijen, to facilitate the gazette of the incentives in line with Nigeria’s existing legal and fiscal frameworks.

“These incentives are not blanket concessions,” the President stated. “They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.

“My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration,” President Tinubu added.