By Our Energy Correspondent
The Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCo), Ronald Adams, has said that Nigeria has the capacity to meet oil production targets and implement ambitious development programmes from deep-water oil and gas operations.
He, however, said this would be possible only if it continues to implement policies to encourage investments and boost output in the sector.
Adams stated this in Lagos on Tuesday, February 11, 2025 while speaking at the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC).
He noted that Nigeria’s deep-water fields are home to some of the world’s most promising associated and non-associated gas reserves, with vast untapped potential that could play a vital role in powering Nigeria’s future, supporting cleaner energy and contributing to global emissions reduction.
“Deep water is a compelling consideration for Nigeria if the country must meet its oil production targets and implement ambitious development programmes,” he said.
According to him, to achieve 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 who welcomed reforms by government to attract investments, especially the signing of three executive orders in February last year on tax incentives, local content compliance requirements and reduction of petroleum sector contracting costs and timelines, suggested that the 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.
“For Nigeria to consistently reap the benefits from deep-water operations, it must address regulatory bottlenecks through streamlined and faster approval processes and consistent and fair policy enforcement.
Speaking on Shell’s vision for unlocking Nigeria’s deep-water potential, Adams assured that the company would continue to leverage its expertise since it pioneered production at the Bonga field in 2005 which achieved 1 billion barrels export milestone in 2023, with further developments to include the FID on the $5-billion Bonga North deep-water project announced last year.
The Shell boss further disclosed that 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 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,” he added.
