Nigeria has the potential to meet its oil production targets and implement ambitious development programs through deep-water oil and gas operations, provided the government continues policies that encourage investments and boost output, according to Ronald Adams, Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCo).
Adams made the remarks while speaking at the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC), which began in Lagos on Tuesday.
“Deep water is a compelling consideration for Nigeria if the country must meet its oil production targets and implement ambitious development programmes,” Adams said.
According to him, Nigeria’s deep-water fields hold some of the world’s most promising associated and non-associated gas reserves, with vast untapped potential that could power Nigeria’s future, support cleaner energy, 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,” he added.
Adams welcomed recent government reforms aimed at attracting investments, particularly the signing of three executive orders in February 2024 focused on tax incentives, local content compliance requirements, and reduction of petroleum sector contracting costs and timelines. Additionally, tax credits were introduced for new investments in deep-water oil and gas.
However, he stressed the need for a renewed strategy that promotes investments through fiscal and regulatory policies that are fit-for-purpose, forward-looking, and competitive.
For Nigeria to consistently maximize the benefits of deep-water operations, Adams emphasized the importance of addressing regulatory bottlenecks by ensuring streamlined and faster approval processes, as well as consistent and fair policy enforcement.
Speaking on Shell’s vision for unlocking Nigeria’s deep-water potential, he reaffirmed the company’s commitment to leveraging its expertise, referencing its pioneering production at the Bonga field in 2005, which achieved a 1 billion barrels export milestone in 2023.
Further developments, he noted, include the Final Investment Decision (FID) on the $5-billion Bonga North deep-water project announced last year.
He said SNEPCo’s deep-water achievements have resulted in the payment of taxes and royalties to government, development of indigenous businesses through contract awards and 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. 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,” he stated.
