President Bola Ahmed Tinubu has approved a package of targeted fiscal and regulatory incentives for Shell Nigeria Exploration and Production Company’s (SNEPCo) long-delayed Bonga South West (BSW) deepwater oil project, estimated to be worth up to $20 billion upon full development.
The approval, announced by the Presidency on Thursday, January 23, 2026, is expected to unlock significant job creation, boost foreign exchange earnings, and accelerate Nigeria’s deepwater oil production capacity.
The Bonga South West field, discovered in 2001 and located approximately 120 km offshore in water depths of 1,000–1,200 metres, holds estimated recoverable reserves of over 1 billion barrels of oil and substantial associated gas. The project has been stalled for nearly two decades due to fiscal disagreements, regulatory uncertainty, and global oil price volatility.
Industry experts estimate that once operational (targeted first oil in 2028–2029), BSW could add 200,000–250,000 barrels per day to Nigeria’s output, significantly increasing revenue and reducing dependence on onshore and shallow-water fields.
In a separate but related decision, President Tinubu approved the commencement of commercial oil drilling in Ogun State following successful appraisal and certification of discoveries in the Dahomey Basin (part of the Dahomey Embayment). This marks the first commercial onshore oil production in the South-West geopolitical zone.
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The President also directed accelerated progress on the Olokola Deep Seaport project a joint initiative between Ogun, Ondo, and Lagos states with renewed emphasis on securing private-sector investment and completing critical feasibility and environmental studies within the next 12 months.
Special Adviser to the President on Energy, Mrs. Olu Verheijen, described the approvals as “a clear signal of the administration’s Renewed Hope agenda to unlock energy investments, create jobs, and diversify revenue streams away from single-source dependence.”
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian National Petroleum Company Limited (NNPCL) are expected to issue formal notices and begin implementation immediately.
By Ogungbayi Beedee Adeyemi
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