Shell Petroleum Development Company (SPDC) has announced a final investment decision (FID) on the Bonga North Deep-water project, reaffirming its long-term commitment to Nigeria’s oil and gas sector. The move signals renewed confidence in the country’s energy potential amid ongoing industry reforms.
The confirmation followed a high-powered delegation from the company, led by the Managing Director and Country Chair, Mr. Osagie Okunbor which paid a visit to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun in his office in Abuja, Wednesday.
In a statement, the Director, Information and Public Relations, Ministry of Finance, Mohammed Manga disclosed that members of the delegation included the incoming Country Chairman of Shell Nigeria Exploration and Production Company (SNEPCO) and Executive Vice President for Nigeria, Mr. Marno De-Jong.
The visit served to formally introduce De-Jong and reaffirm Shell’s strategic commitment to Nigeria, following recent economic reforms under the administration of President Bola Ahmed Tinubu.
“Shell confirmed its capital investment in the Bonga North deep-water project and associated infrastructure part of a broader $5 billion commitment marking the company’s first major project of its kind in Nigeria in over a decade”.
The Bonga North project, located in Oil Mining Lease (OML) 118, is expected to add approximately 100,000 barrels per day (bpd) to Nigeria’s oil production at peak capacity. The development, which includes subsea infrastructure tied back to the existing Bonga Floating Production Storage and Offloading (FPSO) vessel, represents a multi-billion-dollar investment.
Shell’s Country Chair, Mr. Osagie Okunbor, stated:
“This investment underscores Shell’s belief in Nigeria’s energy future. The Bonga North project will not only boost production but also create jobs, enhance local content, and support the government’s efforts to stabilize oil output.”
The decision comes as Nigeria seeks to reverse declining production and attract major international investments. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) welcomed the development, noting that it aligns with the Petroleum Industry Act (PIA) reforms aimed at improving fiscal terms and regulatory clarity.
Industry analysts say the project could help Nigeria reclaim its position as Africa’s top oil producer amid competition from Angola and Libya.
Shell confirmed that the project will prioritize Nigerian contractors and workforce development. The company plans to collaborate with the Nigerian Content Development and Monitoring Board (NCDMB) to ensure compliance with local participation requirements.
Additionally, the project is expected to generate thousands of direct and indirect jobs, further stimulating economic activity in the Niger Delta region.
First oil from Bonga North is projected by 2028, pending regulatory approvals and project execution milestones. Shell will partner with Eni, TotalEnergies, and ExxonMobil under the SNEPCo-operated joint venture.
The announcement has been met with optimism, with Nigeria’s energy stocks showing gains in early trading. The move is seen as a positive signal for other deep-water projects awaiting FID, including Shell’s Bonga Southwest and ExxonMobil’s Owowo field.