Nigerian President Bola Tinubu has approved "targeted, investment-linked" incentives for Shell's Bonga South West deepwater oil project following a meeting with the company's CEO, Tinubu's office said.
The proposed incentives are the latest in a raft of regulatory reforms in Africa's top crude oil producer as it looks to attract investment to boost oil and gas production.
"These incentives are not blanket concessions," Tinubu said in a statement late on Thursday.
He said the incentives will be ring-fenced and focused on new capital, incremental production and strong local content delivery. His office did not give further details on what form they would take.
"My expectation is clear: Bonga South West must reach a final investment decision within the first term of this administration," Tinubu added.
Shell took a final investment decision on the Bonga North development in 2024 as it sought to maintain output at its linked Bonga floating production, storage and offloading facility.
Since the start of Tinubu's presidential term in 2023, it has invested some $7 billion in Bonga North and other projects, the presidency said.
Special Adviser Flags Further $20 Billion Investment
The president's special energy adviser, Olu Arowolo Verheijen, who has been tasked with helping finalise the incentives, said the visit led by Shell's CEO Wael Sawan reaffirmed the oil major's long-term confidence in Nigeria.
She said in a separate LinkedIn post that during the meeting Shell had informed the president of plans to invest an additional $20 billion in the upcoming Bonga South West project.
When asked about the comments from Nigeria, a Shell spokesperson said the group continues to invest in Nigeria, focusing particularly on deepwater and gas.
"Our CEO Wael Sawan discussed various projects with President Tinubu, including Bonga South West, that could see us and partners potentially make future investment decisions," the spokesperson said in an emailed statement.
Last year Shell acquired a stake from TotalEnergies that raised its share in the Bonga oilfield to 65%, underlining its continued interest in offshore Nigeria production after it sold its onshore assets.
(Reuters - Reporting by Wendell Roelf; Additional reporting by Shadia Nasralla in London; Editing by Alexander Winning, Ronojoy Mazumdar and Jan Harvey)