Shell Plc’s Global Chief Executive, Wael Sawan, has announced plans to invest an additional $20 billion in Nigeria’s oil and gas sector. Sawan made this known during a meeting with President Bola Tinubu at the State House, citing the president’s robust and bold leadership as a key factor in the company’s decision.
According to Sawan, Shell is deepening and expanding its investments in Nigeria, and the company is ready to invest the additional funds alongside its partners. He praised President Tinubu for creating a healthy climate for investments to thrive, noting that under his administration, Nigeria has become one of the countries attracting significant investment from global oil companies.
During 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 directed his Special Adviser on Energy, Mrs. Olu Verheijen, to facilitate the gazette of the incentives in line with Nigeria’s existing legal and fiscal frameworks.
Sawan highlighted Shell’s recent investments in Nigeria, including $5 billion in Bonga North and $2 billion in HI, as well as a gas project to NLNG. He stated that the corporation remains committed to long-term investments in the country, citing the stable economic environment as a key factor.
The Shell Chief Executive noted that the company’s investment plans are a “sea change” from its previous stance, when it was pulling back on investments in the country. He described the proposed Bonga Southwest project as one of the biggest energy projects in the world, with opportunities for significant investment and economic growth.
Sawan commended President Tinubu’s leadership and his team, describing them as outstanding professionals who are among the best in the world. He expressed confidence in the company’s ability to invest in Nigeria, citing the professionalism and expertise of the president’s team.
The planned investment of $20 billion is expected to have a significant impact on Nigeria’s economy, with half of the funds going towards capital expenditures and the other half towards operating expenses. The project is expected to create new opportunities for economic growth and development in the country. With Shell’s commitment to long-term investments in Nigeria, the country is poised to become a major player in the global energy sector.
