$10 billion would be unlocked in the expansion of the project on the oil field as a result of the settlement of the disputes. “This is an indication of a renewed confidence between NNPC and its partners; between the [Nigerian] government and the investing communities,” he said in a statement.
According to the country chair of Shell’s Nigerian operation, Osagie Osunbor, this renewal of license will be important in improving relations between Nigeria and Shell, following several disputes which had affected the trust between the parties as well as investments.
Back in 2019, the energy giant invited bids from international contractors for a project on the building of a new 150,000 b/d floating production storage and offloading (FPSO) platform for Bonga Southwest, but the project was halted after the West African nation said it was reviewing the PSC agreement binding on the field. Although Shell had been the country’s biggest oil producer, relations between the parties have deteriorated owing to commercial and security issues over the recent years.
Nevertheless, earlier this month, Shell Chief Executive Ben van Beurden told investors that since Nigeria’s onshore oil portfolio was deemed no longer compatible, the company had decided to focus on the country’s deep-water and gas assets going forward. According to S&P Global Platts, Shell is currently in talks with Abuja to sell at its onshore oil assets.
