The Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has expressed confidence that Nigeria can meet its oil production target of over 2.4 million barrels per day through deep water exploration.
The company added that the ongoing reforms in the oil and gas sector must be sustained if the government wishes to increase its oil output.
This assertion was made by Ronald Adams, Managing Director of SNEPCo, during his address at the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos on Tuesday.
According to a statement released on Wednesday and signed by SNEPCo’s Media Relations Manager, Gladys Afam-Anadu, the MD emphasized that Nigeria’s deep-water fields hold significant potential to drive the country’s oil and gas production.
“Deepwater is a compelling consideration for Nigeria if the country must meet its oil production targets and implement ambitious development programmes,” Adams said.
Deep water fields have gas reserves
He noted that these fields are home to some of the world’s most promising gas reserves, which could play a crucial role in powering Nigeria’s future, supporting cleaner energy, and contributing to global emissions reduction.
- Adams highlighted the importance of creating a favorable investment climate to attract capital and innovation for the responsible and sustainable development of these resources.
- He commended recent government reforms, including the signing of three executive orders in February 2024, which introduced tax incentives, streamlined local content compliance requirements, and reduced contracting costs and timelines in the petroleum sector, especially new investments in deep-water oil and gas projects.
“The fields can play a vital role in powering Nigeria’s future, supporting cleaner energy, and contributing 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.
He also outlined Shell’s vision for unlocking Nigeria’s deep-water potential, citing the company’s expertise since pioneering production at the Bonga field in 2005.
In 2023, Bonga achieved a milestone of one billion barrels exported, with further developments including the $5 billion Bonga North deep-water project, which reached a Final Investment Decision (FID) in 2025.
Adams highlighted SNEPCo’s contributions to Nigeria’s economy, including tax and royalty payments, the development of indigenous businesses through contract awards, and the implementation of social investments across the country’s six geopolitical zones.
“Shell has powered progress in Nigeria and our vision is to build on our support and help the country to 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.”
What you should know
- In December 2024, Shell made a Final Investment Decision (FID) of $5 billion on the Bonga North Deepwater Project which is an extension of the Bonga oil field.
- Saipem and two other Nigerian companies, KOA Oil & Gas and AVEON Offshore secured a contract of $ 1 billion for the Engineering, Procurement, Construction, and Installation (EPCI) of risers, flowlines, and subsea umbilicals, in the Bongo North project.
