How Nigeria can meet oil production targets — Shell

The Managing Director of Shell Nigeria Exploration and Production Company Limited, Ronald Adams, has said Nigeria can meet oil production targets and implement ambitious development programmes from deep-water oil and gas operations if it continues with policies to encourage investments and boost output in the sector.

Adams emphasised that deep water is a compelling consideration for Nigeria if the country must meet its oil production targets and implement ambitious development programmes.

While speaking at the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference in Lagos yesterday, Adams maintained 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.

“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 said.

Adams welcomed reforms by the 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, recalling that tax credits were also announced for new investments in deep-water oil and gas.

The reforms, he noted, should be part of a renewed strategy to attract investments through fit-for-purpose, forward-looking, and competitive fiscal and regulatory policies.

The managing director warned that Nigeria must address regulatory bottlenecks through streamlined and faster approval processes and consistent and fair policy enforcement to consistently reap the benefits from deep-water operations.

Adams, who spoke on Shell’s vision for unlocking Nigeria’s deep-water potential, assured that the company would continue to leverage its expertise since it pioneered production at the Bonga field in 2005, which achieved a 1-billion-barrel export milestone in 2023.

He disclosed that further developments include the FID on the $5bn 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 the government, the development of indigenous businesses through contract awards, and the implementation of social investments across Nigeria’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,” he concluded.