Tinubu Approves New Deep Offshore Oil Investment Framework Worth $50bn

President Bola Tinubu has given approval to a new standardized framework governing how foreign companies invest in Nigeria's deep offshore oil and gas sector. The move replaces the longstanding practice of individual project negotiations between the government and operators, according to an announcement made by presidential spokesperson Bayo Onanuga on Tuesday.

The framework is designed to unlock approximately $50 billion in fresh investment while breathing life into major offshore developments that have sat dormant for years. The new system aims to establish clear, transparent rules that apply uniformly across eligible projects rather than allowing case-by-case deal-making.

This approach is intended to make Nigeria a more attractive destination for the large capital investments required by deep offshore operations, which are among the world's most expensive energy development projects. The framework will also incorporate measures to strengthen local industrial participation in these ventures.

The inaugural project under this new framework is Shell's Bonga South West development, valued at approximately $10 billion. This project has been among the stalled initiatives awaiting regulatory clarity and investment terms.

By standardizing the approval and investment process, the government seeks to reduce delays and create predictability for operators planning major expenditures. Officials have framed the reform as a competitive strategy to secure mobile international capital in the energy sector.

The framework addresses a critical gap in Nigeria's oil and gas infrastructure, as deep offshore production capacity has stagnated over the past decade. The precise eligibility criteria and specific terms of the new framework were not detailed in the announcement by Onanuga.