The Tinubu Media Volunteers (TMV) has described the Presidential approval of incentives for the $20 billion Bonga Southwest Deepwater project as a clear demonstration of the administration’s readiness to open the country to big businesses in the oil sector.
In a statement signed by its Chairman, Chukwudi Enekwechi, the group also argued that the incentives would make more foreign investors to take Nigeria seriously.
The statement read in part, “The incentives are meant to unlock the long-awaited Final Investment Decision by global oil giants Shell for the Bonga Southwest Aparo (BSWA) Deepwater project following the recent meeting between President Bola Tinubu and the top executives of the company.
“Furthermore, the decision is a testament to the renewed confidence in Nigeria’s policy direction and its commitment to translating the reform momentum into tangible investment results.
“It is also proof of the effective leadership and execution by the Tinubu administration.”
The group noted that the Bonga Southwest Deepwater project had been stalled for about twenty years, but with the reforms-focused administration of President Tinubu and NNPCL’s continuous advocacy, the logjam had been broken.
“This positive development also affirms the NNPCL’s avowed commitment under the direction of President Tinubu to unlock Nigeria’s huge potential in the oil and gas sector through partnerships, innovation and execution.
“We want to acknowledge that the fiscal policy being deployed towards the realisation of this project includes enhanced Production Tax Credit and resolution of the 2021 dispute settlement agreement, thereby creating a competitive framework that balances national interest with investor returns.
“It is also worthy of note that the previous attempts towards a resolution were stalled due to fiscal and regulatory constraints,” said the group.
It also applauded the Tinubu administration’s move as a deliberate policy deployment to unlock increased investment and production in the country’s vital crude oil sector.
“For the avoidance of doubt, the Bonga Southwest Aparo development, operated by Shell through its Nigerian deepwater subsidiary, is expected to deliver about 150,000 barrels of crude oil per day and 140 million standard cubic feet (Scf) of gas daily once fully operational.”
The group added that the administration’s hands-on engagement on the issue signals to the world Nigeria’s readiness to cultivate investors’ confidence and protect their interests in return for their huge investments in the Nigerian economy.