Shell Talks Bonga South West as Nigeria Hunts $50bn Oil Investment

Nigeria’s push for three million barrels of crude oil per day by 2030 received further backing on Friday as the Nigerian Upstream Petroleum Regulatory Commission and Shell Nigeria discussed offshore projects and investment opportunities that could unlock an estimated $50 billion for the country’s deep-water oil industry.

The talks in Abuja came as the Federal Government works to attract major capital into offshore oil and gas projects, with the Bonga South West project expected to open the door to about $10 billion in investment.

Mrs Oritsemeyiwa Eyesan, Chief Executive of the NUPRC, met Shell Nigeria’s new Executive Vice President and Country Chair, Mr Elohor Aiboni, at the Commission’s headquarters.

The meeting focused on projects already being handled by Shell and possible new investments in Nigeria’s offshore oil and gas industry.

The discussions are tied to a larger ambition: raising crude oil production capacity to three million barrels per day by 2030. The NUPRC said sustained investment in deep offshore projects would be critical to achieving that goal.

The Commission also said such investment could help improve Nigeria’s energy security and support economic growth.

Bonga South West Takes Early Focus

The Bonga South West project is expected to be the starting point for the planned investment programme in Nigeria’s deep offshore sector.

The project alone is expected to attract about $10 billion, out of the estimated $50 billion in deep offshore investment the government hopes to unlock.

Deep offshore projects require major spending, making investor confidence important to the success of Nigeria’s production plans.

The NUPRC said it was committed to providing an enabling environment for operators and investors in the upstream petroleum industry.

That position formed part of the discussions with Shell, whose representatives reviewed ongoing projects with the Commission and examined areas where further investment could take place.

The meeting also introduced Aiboni to the NUPRC leadership in his new position as Shell Nigeria’s Executive Vice President and Country Chair.

Although no new investment agreement was announced, the discussions showed continued engagement between the regulator and one of the major companies operating in Nigeria’s oil and gas industry.

The government’s production ambition depends heavily on projects capable of expanding the country’s crude oil capacity. Offshore developments are expected to feature prominently in that plan because of the scale of investment required.

The NUPRC said cooperation between the regulator, operators and investors would be important as Nigeria works towards its 2030 production goal.

Friday’s meeting therefore placed Shell’s ongoing offshore projects within the country’s larger investment plan, beginning with Bonga South West and extending to other opportunities in the deep-water oil and gas sector.