Nigeria has approved new investment-linked incentives for Shell’s proposed Bonga South West deepwater oilfield, as the government seeks to revive upstream investment and boost crude production.
President Bola Tinubu announced the decision after meeting Shell Chief Executive Wael Sawan, signalling strong political backing for the offshore project.
Tinubu said the incentives would be ring-fenced and targeted at new capital, incremental output and strong local content, rather than broad concessions.
He added that his administration expects the project to reach a final investment decision (FID) within its first term in office.
Shell said it hopes to take Bonga South West to FID in 2027, potentially unlocking around $20 billion in total investment from Shell and its partners.
Sawan said about half of the amount would be capital spending, with the rest covering operating and related costs.
The incentives form part of wider regulatory reforms aimed at restoring investor confidence in Africa’s largest oil producer.
Shell has already invested $5 billion in Bonga North and $2 billion in the HI gas project feeding Nigeria LNG over the past year.
The company took FID on Bonga North in 2024 to sustain output at the Bonga FPSO facility.
Shell holds a 65% stake in the Bonga oilfield, alongside partners including Exxon Mobil and Eni, underscoring its continued focus on offshore Nigeria.