Shell: Nigeria needs to focus on deepwater resources to achieve oil production target

Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell Plc, says through robust policies, the country can achieve its oil and gas production targets by focusing on its deepwater resources.

Ronald Adam, managing director of SNEPCo, spoke at the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) on Tuesday in Lagos.

Adam said deepwater resources are crucial for Nigeria to meet its oil production goals, which can be achieved by maintaining policies that encourage investment and enhance output in the sector.

He highlighted the nation’s deepwater fields that contain some of the world’s most promising gas reserves 

“These reserves could play a pivotal role in powering Nigeria’s future, supporting cleaner energy, and helping to reduce global emissions,” Adam said.

“To unlock this potential, we need a favourable investment climate that attracts capital and innovation to develop these resources sustainably, ensuring long-term benefits for the country and supporting global sustainability goals.”

To ensure continued success in deepwater operations, Adam said Nigeria needed to address regulatory bottlenecks by streamlining approval processes and ensuring consistent, and fair policy enforcement.

Reflecting on Shell’s commitment to unlocking Nigeria’s deepwater potential, Adam said the company would continue to build on its legacy.

He noted that, since pioneering production at the Bonga field in 2005, the company celebrated a major milestone by reaching one billion barrels in exports in 2023.

The managing director also highlighted the recent final investment decision (FID) on the five billion dollar Bonga North deepwater project.

“SNEPCo’s contributions have resulted in significant tax and royalty payments to the government, as well as the development of indigenous businesses through contract awards and social investments across Nigeria’s six geopolitical zones,” he said.

“Our vision is to continue supporting Nigeria’s energy security and economic development.

“We will do this by applying innovative approaches to deepwater development, reducing costs, and ensuring faster, better returns for all stakeholders.”

Adam also said through continued innovation and collaboration, Shell is confident that Nigeria can harness its deepwater resources to secure a brighter energy future.

In December 2024, the federal government said its crude oil production target for 2025 is three million barrels per day (bpd).