Why Shell Is Investing Fresh $20bn in Nigeria — Global CEO Sawan
The Global Chief Executive Officer of Shell Plc, Wael Sawan, has explained that the company’s planned fresh investment of about $20 billion in Nigeria’s oil and gas sector is driven by what he described as the country’s improving investment climate under President Bola Tinubu.
Sawan spoke during a meeting with President Tinubu at the State House, Abuja, where he said Shell is deepening and expanding its footprint in Nigeria as a result of what he termed bold leadership and policy stability under the current administration.
According to him, Nigeria has emerged as one of the key destinations attracting major investments from global oil companies, noting that recent reforms and policy consistency have boosted investor confidence.
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.
He also directed his Special Adviser on Energy, Mrs Olu Verheijen, to facilitate the process in line with Nigeria’s existing legal and fiscal frameworks.
Highlighting Shell’s recent commitments, Sawan disclosed that the company has invested about $5 billion in the Bonga North project, $2 billion in the HI project, and additional funding in gas supply projects to the Nigeria Liquefied Natural Gas (NLNG) facility.
He stressed that Shell remains committed to long-term investments in Nigeria, citing the country’s stable economic environment as a major factor.
“We have really been in a space where we are very keen to invest in Nigeria. But this has not always been the case,” Sawan said.
“Your leadership and vision have created an investment climate over the last few years that has propelled us to invest here, especially when compared to other opportunities around the world.”
He noted that stability has become a premium consideration for global corporations, particularly for investments with long lifespans.
“We are not investing for one administration or five or ten years. We want to invest for 20, 30, or 40 years, and in the case of Nigeria, for many decades,” he added.
Speaking further on Shell’s expansion plans, Sawan said the company has increased its stake in Oil Mining Lease (OML) 118, also known as the Bonga Block, following its acquisition of interests previously held by TotalEnergies.
“TotalEnergies was selling, so we bought it because we want to deepen our investment further,” he said. “But that is not enough. We believe there is more to invest here, and we understand the vision the President has for the country.”
Sawan disclosed that Shell is currently working on the Bonga South West project, which could attract about $20 billion in foreign direct investment if a final investment decision (FID) is reached.
He explained that roughly half of the amount would be deployed as capital expenditure, while the remaining portion would go into operating expenses and other related costs within Nigeria.
