Eni, Shell, TotalEnergies Renew Offshore Investments in Nigeria

Eni, Shell, and TotalEnergies are reportedly re-engaging in offshore investment in Nigeria, motivated by new tax incentives introduced by President Bola Tinubu. The new Deep Offshore Oil and Gas Projects Incentives framework, approved in August, aims to replace lengthy negotiations with clearer, investment-linked rules, potentially unlocking up to $50 billion in offshore capital.

Shell's Bonga South-West Aparo project exemplifies the framework's impact, as NNPC and its OML 118 partners, including Shell Nigeria Exploration and Production, have amended their production-sharing terms, moving closer to a final investment decision valued between $15 billion and $21 billion. Additionally, in March, President Tinubu met with Eni's chief executive, Claudio Descalzi, resolving a long-standing dispute over OPL 245, which has since been converted into new development and exploration licenses.