Nigerian President Bola Tinubu has approved a targeted production tax credit and other fiscal incentives to accelerate the Final Investment Decision (FID) for Shell's Bonga Southwest Aparo deepwater oil project. This strategic move aims to attract approximately $20 billion in foreign direct investment (FDI) into Nigeria and usher in a new phase of deepwater oil production. The project, operated by Shell in partnership with other international oil companies, is projected to produce around 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily, while also creating over 5,000 direct and indirect jobs.
The approval follows extensive technical and commercial negotiations involving the Nigerian National Petroleum Company Limited (NNPCL), the Nigeria Revenue Service (NRS), President's Special Adviser on Energy Ms. Olu Verheijen, and Shell CEO Mr. Wael Sawan. According to the NNPCL spokesperson, Mr. Andy Odeh, this investment represents a major step in Nigeria's efforts to attract large-scale energy investments and stimulate long-term economic growth. The Bonga Southwest Aparo project is set to be Nigeria's first deepwater production sharing contract (PSC) asset to reach an FID since 2008, re-establishing the country as a competitive destination for deepwater oil investment.
President Tinubu emphasized that these incentives are not broad concessions but are specifically tied to new capital and incremental production, with a focus on strong local content and in-country value addition. The President instructed his Special Adviser on Energy, Mrs. Olu Verheijen, to facilitate the official gazetting of these incentives within Nigeria's existing legal and fiscal frameworks. He stated his clear expectation that the Bonga South West project must reach an FID within the first term of his administration, which concludes in 2027.
