International Oil Giants Launch Massive $10 Billion Return to Nigeria After Decade-Long Exodus
In a stunning reversal that’s sending shockwaves through the global energy sector, International Oil Companies (IOCs) are staging a dramatic comeback to Nigeria’s oil and gas industry with investments exceeding $10 billion, marking the end of a decade-long absence from the volatile but lucrative market.
The remarkable turnaround comes as President Bola Tinubu’s comprehensive reform agenda transforms Nigeria’s operating environment, creating an irresistible attraction for major oil companies that fled the troubled Niger Delta region in 2012.
The numbers tell an extraordinary story of renewed confidence. Over $8 billion in Final Investment Decisions (FIDs) have been committed to deep-water oil and gas projects, while the previously troubled shallow and onshore fields have attracted over $2 billion in FIDs within just twelve months.
Leading the charge, Shell Nigeria announced a massive $5 billion final investment decision for the Bonga North deep-water project in December 2024, followed by a strategic $510 million acquisition of TotalEnergies’ stake in the OML 118 Production Sharing Contract.
Not to be outdone, American oil giant ExxonMobil unveiled plans for a $1.5 billion investment to revitalize the Usan deep-water offshore oil field, with Managing Director Shane Harris declaring the move reflects “confidence in Nigeria’s upstream potentials.”
TotalEnergies has committed $550 million to the Ubeta Field Development Project, while Brazil’s Petrobras announced its intention to return after a 23-year absence, driven by an ambitious $111 billion five-year investment strategy.
The transformation is attributed to game-changing presidential directives, including the Presidential Directive on Local Content Compliance Requirements 2024 and the Oil and Gas Companies Tax Incentives Order 2024, which have fundamentally reshaped the sector’s appeal to international investors.
Source: hallmarknews.com