CAPE TOWN - Nigerian President Bola Tinubu has approved "targeted, investment-linked" incentives for Shell's Bonga South ‍West deepwater oil project following ‍a meeting with the company's CEO, Tinubu's office said.

The proposed incentives are ​the latest in a raft of regulatory reforms in Africa's top crude oil producer as it looks ⁠to attract investment to boost oil and gas production.

"These incentives are not blanket concessions," Tinubu ⁠said in a ‌statement late on Thursday. He said the incentives will be ring-fenced and focused on new capital, incremental production and strong local content delivery. His office did not ⁠give further details on what form they would take. "My expectation is clear: Bonga South West must reach a final investment decision within the first term of this administration," Tinubu added. Shell took a final investment decision on the Bonga North development in 2024 as ⁠it sought to maintain output ​at its linked Bonga floating production, storage and offloading facility. Since the start of Tinubu's presidential term in 2023, it has invested ‍some $7 billion in Bonga North and other projects, the presidency said.

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The president's special ​energy adviser, Olu Arowolo Verheijen, who has been tasked with helping finalise the incentives, said the visit led by Shell's CEO Wael Sawan reaffirmed the oil major's long-term confidence in Nigeria. She said in a separate LinkedIn post that during the meeting Shell had informed the president of plans to invest an additional $20 billion in the upcoming Bonga South West project. When asked about the comments from Nigeria, a Shell spokesperson said the group continues to invest in Nigeria, focusing particularly on deepwater and gas.

"Our CEO Wael Sawan discussed various projects with President Tinubu, including ⁠Bonga South West, that could see us and partners ‌potentially make future investment decisions," the spokesperson said in an emailed statement. Last year Shell acquired a stake from TotalEnergies that raised its share in the Bonga oilfield to 65%, underlining its ‌continued interest ⁠in offshore Nigeria production after it sold its onshore assets.