Business · South Africa
Shell Eyes $20bn Nigeria Deepwater Oil Project
Moneyweb · 2026/01/23
Summary
Shell and its partners are exploring the possibility of developing the Bonga South West oil project in Nigeria’s Niger Delta. This deepwater project is estimated to hold about 820 million barrels of oil reserves and could reach a peak production of 220,000 barrels per day if it goes ahead. Nigeria is one of Africa’s biggest oil producers, and projects like this could significantly impact the local and global oil markets. For South Africa and the broader African economy, such developments may influence fuel prices and investment opportunities in the energy sector. While still in the study phase, a $20 billion investment reflects the scale and importance of this potential project, showing confidence in Nigeria’s oil potential despite current global energy challenges.
OnABudget takeaway: If developed, this huge oil project could affect fuel prices and investment options for South African consumers and businesses. It highlights ongoing demand and opportunities in Africa's energy markets even amid global shifts.