Segun Atanda/
Nigeria has the potential to meet its oil production targets and drive economic growth through deep-water oil and gas operations—provided it sustains policies that encourage investment and boost output, says 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 operations are essential for Nigeria’s energy future.
“Deep water is a compelling opportunity for Nigeria to achieve its production targets and ambitious development goals,” he said.
He highlighted Nigeria’s deep-water fields as home to some of the world’s most promising associated and non-associated gas reserves, offering vast untapped potential to power the country’s future, support cleaner energy, and contribute to global emissions reduction. However, he stressed that unlocking these resources requires a stable and attractive investment climate.
“This will demand policies that foster investment, drive innovation, and ensure responsible and sustainable development of these gas resources—ultimately delivering long-term economic and environmental benefits,” Adams said.
Adams welcomed the government’s recent reforms to attract investment, particularly the three executive orders signed in February 2024. These orders focus on tax incentives, local content compliance, and reducing petroleum sector contracting costs and timelines. Additionally, tax credits have been introduced for new deep-water investments.
He urged policymakers to build on these reforms with a long-term strategy that ensures Nigeria remains competitive globally. “We need fiscal and regulatory policies that are fit-for-purpose, forward-looking, and competitive,” he stated.
For sustained success in deep-water operations, Adams emphasized the need to eliminate regulatory bottlenecks, streamline approval processes, and ensure consistent and fair policy enforcement.
Shell has played a pioneering role in Nigeria’s deep-water sector since achieving first oil at the Bonga field in 2005. In 2023, Bonga reached a milestone of 1 billion barrels exported. Further expansion includes the Final Investment Decision (FID) on the $5-billion Bonga North deep-water project announced last year.
SNEPCo’s deep-water operations have contributed significantly to Nigeria’s economy through tax and royalty payments, local business development, and social investments across all six geopolitical zones.
“Shell has powered progress in Nigeria, and our vision is to support the country in achieving energy security and economic growth,” Adams concluded. “We will continue to drive innovation in deep-water development, reducing costs and ensuring better, faster returns for all stakeholders.”
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