Nigeria has the potential to achieve its oil production targets and drive major development programs through deep-water oil and gas operations, provided it maintains policies that attract investments and boost output, 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 emphasized that deep-water development is essential for Nigeria’s energy future. He highlighted that the country’s deep-water fields hold some of the world’s most promising associated and non-associated gas reserves, which, if properly harnessed, could support cleaner energy, drive economic growth, and contribute to global emissions reduction.
“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.
He welcomed recent government reforms aimed at attracting investment, including three executive orders signed in February 2024 on tax incentives, local content compliance, and reductions in petroleum sector contracting costs and timelines. He also noted the introduction of tax credits for new deep-water oil and gas investments.
Adams called for these reforms to be part of a broader strategy that includes competitive fiscal and regulatory policies. He stressed the need for Nigeria to address regulatory challenges by streamlining approval processes and ensuring consistent and fair policy enforcement.
Reflecting on Shell’s contributions to Nigeria’s deep-water industry, Adams reaffirmed the company’s commitment to leveraging its expertise. He pointed out that Shell pioneered deep-water production at the Bonga field in 2005, which reached a milestone of 1 billion barrels exported in 2023. Additionally, he highlighted last year’s announcement of the Final Investment Decision (FID) on the $5-billion Bonga North deep-water project as a testament to Shell’s long-term commitment.
SNEPCo’s deep-water operations, Adams noted, have resulted in significant contributions to Nigeria’s economy, including tax and royalty payments, the development of indigenous businesses through contract awards, and social investment projects across all six geopolitical zones.
“Shell has powered progress in Nigeria, and our vision is to build on our support to help the country achieve energy security and economic development,” Adams said. “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.”
