ExxonMobil Executive Addresses FID Delays for Bonga Southwest Project
Jagir Bakshi, Chairman and Managing Director of ExxonMobil Affiliates in Nigeria, has countered accusations suggesting that the American oil corporation is obstructing the Final Investment Decision (FID) for the Bonga Southwest Deepwater Project, estimated at $20 billion.
Bakshi clarified that ExxonMobil’s role in the Bonga Southwest project is to collaborate with operator Shell Nigeria Exploration and Production Company (SNEPCo) and other partners to enhance the project’s readiness for FID.
The Bonga Southwest asset represents one of Nigeria’s most significant deepwater oil resources, boasting about 820 million barrels of reserves and an estimated production capacity of 150,000 barrels per day (bpd), alongside potential gas production of 140 million standard cubic feet (Scf) daily once fully operational.
Alongside Shell, ExxonMobil shares the Bonga Southwest project with Total Energy, Eni SpA, and the Nigerian National Petroleum Corporation (NNPC). If plans remain unchanged, Shell anticipates implementing the FID for this project by 2027.
Recently, the NNPC disclosed that it had acquired presidential consent for a financial incentive package designed to facilitate the long-awaited FID for the Bonga Southwest Aparo Project. Part of this initiative involves reinforcing production tax credits and addressing issues arising from the 2021 dispute settlement agreement between the government and contractors.
In a recent conversation with THISDAY, Bakshi reaffirmed that ExxonMobil is actively collaborating with Shell and its partners to propel Bonga Southwest toward FID, although he refrained from specifying an exact timeline. He emphasized the necessity of establishing a viable financial structure for the project’s advancement.
Bakshi indicated that the much-discussed issues surrounding the project are not inhibiting factors; instead, they highlight the need for enhanced resource understanding and strategic application of national content and contracting methods. He asserted that ensuring Bonga Southwest’s competitiveness in ExxonMobil’s capital portfolio is crucial for attracting investment.
He added that an increase in the project’s capital competitiveness is essential for ensuring that stakeholders recoup their investments effectively. Bakshi noted that this fundamental aspect can often be overlooked in broader discussions, where blame is placed on partners rather than addressing the underlying needs for maximizing total shareholder value.
Bakshi reiterated that collaboration among stakeholders is paramount for making a project of Bonga’s scale competitive on a global level. He acknowledged the supportive role of the current administration, including President Bola Tinubu and various ministers, in coordinating efforts to advance Bonga Southwest.
While Bakshi did not provide a timeline for the FID, he expressed ExxonMobil’s robust commitment to supporting the project under the right conditions. He emphasized the importance of open dialogue, indicating a willingness to raise concerns with stakeholders if conditions change. His remarks underscored that improving project readiness is a collaborative effort aimed at benefiting all investors involved.
