The Chief Executive Officer of Shell Plc, Mr. Wael Sawan, has lauded President Bola Tinubu’s leadership for fostering a conducive investment environment and restoring investors confidence.
Speaking at a meeting with President Tinubu at the State House, Abuja, Mr. Sawan said Shell is deepening and expanding its investments in Nigeria and, in partnership with others, is prepared to commit an additional $20 billion, citing the President’s robust and decisive leadership
He emphasised that Nigeria, under the Tinubu administration, is one of the countries attracting significant investment from global oil companies.
Highlighting Shell’s recent investments, such as the $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. 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” 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” he added.
Expanding Investments In Nigeria
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.
“This will be one of the biggest, I would say, energy projects in the world.” he said.
Mr 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.
He commended the President’s team, describing them as outstanding professionals.
At the meeting, President 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.