Shell Considers $20bn Investment in Nigeria’s Bonga South West Offshore Oil Project
Shell Plc and its partners in Nigeria are evaluating plans to develop a major offshore oil field that could attract up to $20 billion in investment, according to the company’s Chief Executive Officer, Wael Sawan.
Sawan said Shell is working with its partners on the Bonga South West project, a deepwater offshore development that could draw approximately $20 billion in foreign direct investment if it reaches a final investment decision (FID).
Speaking in a video shared by Nigeria’s presidency, he described Bonga South West as one of the world’s largest potential energy developments and confirmed that Shell is also assessing additional investment opportunities in the country.
He noted that Shell’s renewed interest in Nigeria follows improvements in the operating and investment environment, crediting recent leadership reforms for restoring investor confidence.
Located in deepwater offshore the Niger Delta, the Bonga South West field is estimated to contain about 820 million barrels of oil and could reach peak production of up to 220,000 barrels per day.
Sawan explained that roughly half of the projected $20 billion investment would be allocated to capital expenditure, with the remainder covering operating costs and other in-country spending.
Shell holds the largest equity stake in the project, alongside joint venture partners ExxonMobil, TotalEnergies, Eni, and Nigeria’s state-owned Nigerian National Petroleum Company (NNPC).
Despite renewed interest, major oil companies remain cautious about committing capital to large-scale developments as they prioritise capital discipline amid relatively subdued oil prices.
However, growing uncertainty around future oil supply is reinforcing the need for new sources of production.
A Shell spokesperson confirmed that Sawan discussed several potential projects with President Bola Tinubu, including Bonga South West, noting that these engagements could lead to future investment decisions.
The company said it would continue to pursue upstream investments where commercial and regulatory conditions are favourable.
Shell paid $5.34 billion in taxes and other charges to Nigeria in 2024—more than to any other country—reflecting an increase from the previous year as the company progresses toward exiting its onshore oil production business.
The planned divestment from onshore operations in the Niger Delta, among Shell’s most emissions-intensive assets, forms part of the company’s strategy to streamline its portfolio and advance toward its net-zero emissions target by 2050.
Shell has long faced allegations of environmental damage linked to its onshore activities in the region.
Sawan said recently approved incentives by the Nigerian government have improved project visibility and investor certainty.
He added that Shell plans to commence pre-FID work in the coming months, with the objective of advancing the project toward a final investment decision.
