Shell sees $6 billion in investment prospects in Nigeria, particularly in offshore, gas and liquefied natural gas (LNG) projects, according to a statement issued by the country’s presidency on Friday.
Nigeria, the continent’s largest economy and major oil producer, has been attempting to attract more foreign investment since President Bola Ahmed Tinubu took office in May, bringing with him a slew of economic changes.
After meeting with Tinubu in Abuja, Shell representative Zoe Yujnovich announced a “imminent” $5 billion investment in the Bonga North offshore project and commitment to another $1 billion over the next 5 to 10 years in gas and LNG, according to a presidency statement.
Shell remains committed to investments in Nigeria, “particularly as the company refocuses its investment to key into new and existing opportunities in the Deepwater and Gas sector,” the statement said.
Tinubu, a former Lagos governor, said he was committed to overcoming roadblocks to investment for the energy sector.
“We are very focused on resolving all investment-related issues,” the Nigerian leader said in the statement.
“There is no bottleneck that is too difficult for us to remove in our determined march toward making Nigeria the African haven for large-scale investment in all key sectors.”
OPEC member Nigeria has seen its oil output on the decline in recent years due to widespread theft from pipelines and attacks and high operating costs deterring on-shore investors.
A new law, the Petroleum Industry Bill, passed in 2021 after years of debate and delays aimed to bring more foreign investment in the oil sector with amendments to regulations, royalties and taxes.