London, Jan 23, 2026, 08:03 GMT — Regular session
- Shell shares climbed roughly 0.3% in early London trading, rebounding from Thursday’s decline.
- Nigeria has greenlit targeted incentives for Shell’s planned Bonga South West deepwater project. The presidency mentioned a potential $20 billion investment, though Shell has yet to confirm that figure.
- Investors are digesting news that Shell is exploring potential buyers for its Vaca Muerta shale assets in Argentina.
Shell shares SHEL.L edged up roughly 0.3%, hitting 2,683 pence by 0803 GMT Friday, just above Thursday’s close of 2,674 pence as London trading kicked off.
The early gain reflects investors grappling with mixed signals: Nigeria is pushing Shell toward a major new offshore project, but a separate report suggests the company could scale back its shale operations in Argentina. Shares dropped 2.2% on Thursday, underperforming the stronger FTSE 100.
These developments come at a tricky time for the sector. Oil prices are bouncing unpredictably due to geopolitics and U.S. inventory reports, while investors keep a close eye on whether companies will funnel cash into new projects, share buybacks, or further selloffs.
Nigeria’s presidency announced that President Bola Tinubu has approved targeted, investment-linked incentives for Shell’s planned Bonga South West deepwater project following a meeting with Shell CEO Wael Sawan. “These incentives are not blanket concessions,” Tinubu emphasized, adding, “My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration.” Tinubu’s special energy adviser, Olu Arowolo Verheijen, said Shell informed the president it intends to invest an additional $20 billion in Bonga South West. Shell has not immediately confirmed this figure. Reuters
A final investment decision, or FID, marks the point when partners approve the budget for a major project and commit to the expenditure.
Shell has contacted potential buyers recently about offloading some or all of its Vaca Muerta shale holdings in Argentina, three sources told Reuters. The assets could fetch billions of dollars, according to those familiar with the talks. Andy McConn, director at Enverus Intelligence Research, noted these assets might break even with Brent crude under $50 a barrel, calling their economics and scale “favorable compared to other global shale plays.” Reuters
According to the report, Shell got into Vaca Muerta back in 2012. It now operates four blocks and holds minority stakes in three more, all managed by state company YPF. The company expects to produce around 15.6 million barrels in Argentina this year. However, sources warned that a sale isn’t certain.
Oil prices gave energy stocks a lift on Friday. Brent crude climbed 0.7% to $64.49 a barrel, while U.S. crude also rose 0.7%, hitting $59.78 as of 0522 GMT. The move came after Trump renewed threats against Iran, sparking fears of supply disruption.
Crude dropped about 2% the previous day after Trump dialed back his tough talk on Greenland and Iran. U.S. data also showed crude inventories jumped 3.6 million barrels in the week ending Jan. 16, surpassing forecasts. “There is a deflation of risk premium related to the Greenland debacle and Iran supply risk has also been reduced,” said Ole Hansen, chief commodity analyst at Saxo Bank. Reuters
Shell faces a complicated road ahead. Nigeria’s incentives might accelerate the project timeline—or just push negotiations further down the line, with spending decisions still up in the air; the company hasn’t confirmed the $20 billion figure mentioned by the presidency. In Argentina, the sale could stall, with valuation depending heavily on how fast development moves and what commodity prices do.
Investors have their sights set on Feb. 5, when Shell plans to release fourth-quarter results along with its interim dividend update for the quarter.
