By Abdulfatah Babatunde
The Democratic Front (TDF), a think tank group, has praised Shell’s $5 billion final Investment Decision (FID) on the Bonga North Deep Offshore field.
TheNewsZenith reports that TDF described the investment as “yet another proof of the investment-friendly mindset of President Bola Tinubu’s administration”.
Mallam Danjuma Muhammad and Chief Wale Adedayo, the group’s Chairman and Secretary gave the commendation in a statement e-mailed to TheNewsZenith on Thursday.
TDF noted that Shell’s move showed that International Oil Companies (IOCs) still found Nigeria attractive for investment.
“We join President Bola Tinubu in celebrating Shell’s Final Investment Decision (FID) on Bonga North Offshore Field.
“It is a thing of pride for us that the investment is the outcome of reforms introduced by the President through the Presidential Directives numbers 40, 41 and 42.
“The directives are to fast-track regulatory approvals, reduce operational costs, and promote competitive fiscal incentives in the oil and gas sector.
“We are convinced that the fresh investment in the sector, and indeed the larger Nigeria economy, is not only limited to the $5 billion value of the investment.
“It also extends to the field’s potential volume of 350 million barrels of crude oil.
“This development will further raise the nation’s oil output and revenue. It will also bolster Nigeria’s position as Africa’s largest oil producer.
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“We are elated about Shell’s $5 billion deepwater investment, especially as it came at a time of misconceptions about IOCs leaving Nigeria.
“Indeed, many of them are making strategic investment decisions in response to the administration’s incentives,” the statement read in part.
TDF recalled that earlier this year, the Ubeta upstream gas field (OML 58), attracted a $500 million investment from TotalEnergies.
This investment is due to President Tinubu’s fiscal incentives to drive foreign direct investments into the newly transformed oil and gas sector.
“The Ubeta upstream field is estimated to produce 350 million standard cubic feet of gas daily when operational.
“This will significantly raise the country’s profile as a major gas producer.”
“Since its discovery in 1996, the Bonga deepwater field in OML 118 has not witnessed such a huge investment as the $5 billion coming from Shell.
“This is an attestation of President Tinubu’s pro-business approach to governance,” TheNewsZenith quoted TDF as stating.
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