Shell: Nigeria’s Deep-Water Oil Production to Drive Output Growth.

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Nigeria has the potential to meet its oil production targets and implement ambitious development programs through deep-water oil and gas operations, according to Ronald Adams, Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCo).

Speaking at the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos, Adams noted that deep water is a crucial consideration for Nigeria to achieve its oil production targets and implement development programs. He emphasised that Nigeria’s deep-water fields hold some of the world’s most promising associated and non-associated gas reserves, with vast untapped potential to power Nigeria’s future, support cleaner energy, and contribute to global emissions reduction.

However, Adams stressed that this requires “a favourable investment climate to attract capital and innovation to develop these gas resources responsibly and sustainably, ensuring long-term benefits for the country in meeting its energy and global sustainability goals.”

Adams welcomed government reforms aimed at attracting investments, particularly the signing of three executive orders on tax incentives, local content compliance requirements, and reduction of petroleum sector contracting costs and timelines. He noted that these reforms should be part of a renewed strategy to attract investments “through fiscal and regulatory policies that are fit-for-purpose, forward-looking, and competitive.”

To consistently reap the benefits from deep-water operations, Adams emphasised the need for Nigeria to address regulatory bottlenecks through streamlined and faster approval processes and consistent and fair policy enforcement.

On Shell’s vision for unlocking Nigeria’s deep-water potential, Adams assured that the company would continue to leverage its expertise, referencing its pioneering production at the Bonga field in 2005, which achieved a one billion barrels export milestone in 2023. Further developments include the Final Investment Decision (FID) on the $5 billion Bonga North deep-water project announced last year.

Adams highlighted SNEPCo’s deep-water achievements, which have resulted in the payment of taxes and royalties to the government, the development of indigenous businesses through contract awards, and the implementation of social investments across the six geopolitical zones in Nigeria.

“Shell has powered progress in Nigeria, and our vision is to build on our support and help the country achieve energy security and economic development,” Adams added. “We will do this by continuing to take innovative approaches to deep-water development, reducing costs, and ensuring better and quicker returns for all stakeholders”

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