…Lauds President Tinubu On Reform Initiatives
The Chief Executive of Shell Plc, Mr Wael Sawan, has hinted of the company’s plans to invest additional $20 billion in Nigeria’s hydrocarbon resources industry as part of the management’s moves to deepen its Exploration and Production (E&P) operations activity in the country.
President Bola Tinubu’s Special Adviser on Information and Strategy, Mr. Bayo Onanuga, who gave this hint in a statement on Sunday, quoted Sawan as making the pledge during his meeting with the President at the Presidential Villa in Abuja.
The Shell boss, who lauded Tinubu’s leadership for creating a healthy climate for investments to thrive and restoring investor confidence in the country, said Shell and its partners would be committing the additional $20 billion primarily because of the improving investment environment.
Highlighting Shell’s recent investments, such as $5 billion in Bonga North, $2 billion in HI, and the gas project to NLNG, Sawan maintained that the corporation was committed to long-term investments in the country, underscoring the stable economic environment.
He clarified: “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.
“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, 40 years and in the case of Nigeria, for many, many decades”, Sawan added.
On the expansion of Shell’s investments in Nigeria, he maintained that the corporation had also deepened its interest in Block OML 118, the Bonga Block.
The Shell boss explained: “Total Energies was selling, so we bought it because we want to deepen 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 $20 billion 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, I would say, energy projects in the world. We still see opportunities like Bonga South, which is further in the funnel, to be able to continue to invest”, he added.
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.
Recalling the incentives that attracted his company to the Bonga Southwest project, Sawan thanked President Tinubu for the leadership shown there “to provide the incremental incentives that are now getting us line of sight to an investment in this project with our partners.
“And that leadership, I would also say, has put many of the people that we are working with, your team, are 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 stressed.
At the meeting, 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 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.
Tinubu said” “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 South West must reach a Final Investment Decision within the first term of this administration”, the President added.