Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigeria can achieve its oil production target of over 2.4 million barrels per day through deep-water exploration.
However, the company stressed the need for sustained reforms in the oil and gas sector to drive this growth.
Speaking at the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos on Tuesday, Ronald Adams, SNEPCo’s managing director, underscored the vast potential of Nigeria’s deep-water fields.
According to a statement signed by Gladys Afam-Anadu, SNEPCo’s media relations manager, Adams described deep-water exploration as crucial for Nigeria’s energy ambitions and economic development.
“Deep-water is a compelling consideration for Nigeria if the country must meet its oil production targets and implement ambitious development programmes,” Adams said.
He highlighted that these offshore fields contain some of the world’s most promising gas reserves, which could contribute to Nigeria’s energy security, support cleaner energy initiatives, and help reduce global emissions.
He also emphasised the need for a conducive investment environment to attract capital and technological innovation for the responsible and sustainable development of these resources.
Adams commended the Nigerian government’s recent policy measures, particularly the three executive orders signed in February 2024.
These reforms introduced tax incentives, streamlined local content requirements, and reduced contracting costs and timelines, key factors in boosting investment 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. A favourable investment climate is essential to attract capital and innovation, ensuring long-term benefits for the country’s energy security and sustainability goals,” he said.
He also reaffirmed Shell’s commitment to Nigeria’s deep-water development, citing the company’s pioneering role in the Bonga field, which began production in 2005.
In 2023, Bonga reached a major milestone, exporting one billion barrels of oil. Further expansion includes the $5 billion Bonga North deep-water project, for which Shell made a Final Investment Decision (FID) in December 2024.
SNEPCo’s contributions extend beyond oil production, with Adams noting the company’s economic impact through tax and royalty payments, contract awards to indigenous businesses, and social investment programmes across Nigeria’s six geopolitical zones.
“Shell has powered progress in Nigeria, and our vision is to strengthen our support for the country’s energy security and economic development,” Adams said.
“We will continue to take innovative approaches to deep-water exploration, reducing costs, and delivering quicker and better returns for all stakeholders,” he added.
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