The Chief Executive Officer of Shell Plc, Mr Wael Sawan, has praised President Bola Tinubu’s leadership for creating a healthy climate for investments to thrive and restoring investor confidence.
At a meeting with President Tinubu at the Presidential Villa in Abuja recently, Sawan said Shell is deepening and expanding its investments in Nigeria, and the company is ready, alongside its partners, to invest an additional $20bn primarily because of the robust and bold leadership of the President.
According to a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, Sawan 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 $5bn in Bonga North, $2bn 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. But I would say this has not always been the case.
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, in particular, also as we compare to other investments around the world,” he said.
The Shell CEO maintained that “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, or 40 years, and in the case of Nigeria, for many, many decades.”
Speaking on the expansion of Shell’s investments in Nigeria, Sawan maintained that the corporation has also deepened its interest in OML 118, the Bonga Block.
“TotalEnergies was selling, so we bought it because we want to deepen it 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 $20bn 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 energy projects in the world,” he explained.
Speaking further, he added that the energy giant still sees opportunities like Bonga South, which is further in the funnel, to be able to continue to invest. 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.
“Your Excellency, for Bonga Southwest, that huge project, I would like to thank you. I want to thank you for the leadership you have shown there to be able to provide the incremental incentives that are now getting us line of sight to an investment in this project with our partners,” the Shell boss added.
He also commended the President’s team, describing them as outstanding professionals.
“And that leadership, I would also say, has put many of the people that we are working with, your team, amongst the best that we are dealing with anywhere in the world, and that professionalism allows us to be able to have the confidence, and I would say our partners as well, to have the confidence to continue to invest,” he concluded.
At the meeting, Tinubu approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga Southwest 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; 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 Southwest must reach a Final Investment Decision within the first term of this administration,” Tinubu stated.
punch.ng
FOLLOW US ON:
