Shell Considers $20 Billion Offshore Oil Investment in Nigeria’s Bonga South West Field
Shell Plc and its partners in Nigeria are evaluating development options for the Bonga South West deepwater oil project, an offshore asset that could attract up to $20 billion in investment if it reaches a final investment decision (FID), according to Shell’s chief executive officer, Wael Sawan.
Speaking in a video shared by Nigeria’s presidency, Sawan said Shell is working closely with its partners on the project, which he described as one of the largest potential energy developments globally. He added that Shell is also reviewing additional investment opportunities in Nigeria.
Bonga South West is located in deepwater offshore the Niger Delta and is estimated to contain approximately 820 million barrels of recoverable oil. At peak output, the field could produce up to 220,000 barrels per day.
Sawan said around half of the projected $20 billion would be allocated to capital expenditure, with the remainder covering operating costs and other in-country spending.
Shell holds the largest stake in the project, alongside partners ExxonMobil, TotalEnergies, Eni, and Nigeria’s state-owned Nigerian National Petroleum Company (NNPC).
Sawan said Shell’s renewed interest in Nigeria reflects recent leadership and regulatory reforms that have improved the investment climate and restored investor confidence. He noted that Shell is now keen to invest in the country after a period of caution.
While major oil companies remain disciplined on capital spending amid volatile oil prices, rising uncertainty around future global supply is increasing the strategic importance of large, long-life offshore projects.
A Shell spokesperson confirmed that Sawan discussed several potential investments with President Bola Tinubu, including Bonga South West, which could progress toward future investment decisions.
The company said it will continue to deploy capital in upstream projects where commercial and regulatory conditions are supportive.
Shell paid $5.34 billion in taxes, royalties, and other charges to Nigeria in 2024—more than to any other country—as payments rose year-on-year while the company advances plans to exit its onshore oil production business in the Niger Delta.
The planned withdrawal from onshore operations, among Shell’s most emissions-intensive assets, forms part of the company’s strategy to simplify its portfolio and advance toward its net-zero emissions target by 2050.
Shell has long faced environmental and social challenges linked to its onshore operations in the region.
Sawan said recent incentives approved by President Tinubu have improved project clarity and economics, adding that Shell plans to begin pre-FID activities in the coming months with the aim of ultimately reaching a final investment decision.
