The Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCo), Ronald Adams, has emphasized that Nigeria can meet its oil production targets and implement ambitious development programs through deep-water oil and gas operations, provided that the country maintains policies that encourage investment and output growth.
Deep-Water Potential and Nigeria’s Energy Future
Speaking at the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference in Lagos, Adams underscored the strategic importance of deep-water exploration in Nigeria. He noted that Nigeria’s deep-water fields house some of the world’s most promising associated and non-associated gas reserves, with vast untapped potential that could:
- Power Nigeria’s future energy needs
- Support cleaner energy production
- Contribute to global emissions reduction
He emphasized that a favorable investment climate is essential to attract the necessary capital and innovation required to develop these resources sustainably.
“This will require 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 stated.
Government Reforms and Investment Climate
Adams commended recent government reforms aimed at attracting investments, including the signing of three executive orders in February 2023 that focused on:
- Tax incentives for oil and gas investors
- Local content compliance requirements
- Reduction of petroleum sector contracting costs and timelines
He noted that the introduction of tax credits for new deep-water investments is a positive step, but more needs to be done to sustain investor confidence.
To ensure consistent benefits from deep-water operations, Adams urged the Nigerian government to address:
- Regulatory bottlenecks that slow down project approvals
- More efficient approval processes to prevent investment delays
- Fair and consistent policy enforcement to encourage long-term investor commitments
Shell’s Commitment to Nigeria’s Deep-Water Development
Adams reaffirmed Shell’s commitment to Nigeria, highlighting that the company has been a pioneer in deep-water exploration, starting with its Bonga field production in 2005. The Bonga project achieved a 1-billion-barrel export milestone in 2023, cementing its place as a key contributor to Nigeria’s oil production.
Further developments include:
- Final Investment Decision (FID) on the $5 billion Bonga North project announced in 2023
- Significant contributions through taxes and royalties
- Development of indigenous businesses via contract awards
- Implementation of social investment projects across Nigeria’s six geopolitical zones
Enhancing Nigeria’s Energy Security and Economic Growth
Adams reiterated that Shell remains dedicated to supporting Nigeria’s energy security and economic development. He outlined the company’s vision of:
- Innovating deep-water development strategies
- Reducing operational costs
- Ensuring quicker and better returns for all stakeholders
“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. 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,” Adams concluded.
The Future of Deep-Water Exploration in Nigeria
As Nigeria seeks to boost oil production and attract foreign investment, deep-water exploration is set to play a crucial role. The government’s ability to implement efficient policies and regulatory frameworks will determine how well the country maximizes its vast offshore oil and gas resources while ensuring sustainable economic growth.
