Nigeria’s deep-water oil and gas production could really take off if the right policies continue to support local investment and boost output, according to 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 on Tuesday, Adams stressed that Nigeria’s deep-water fields hold some of the world’s most promising gas reserves. He believes that these untapped resources can not only help the country meet its oil production targets but also fund ambitious development programmes and support cleaner energy for the future.
“Deep water is a compelling consideration for Nigeria if the country must meet its oil production targets and implement ambitious development programmes,” Adams said. “Our deep-water fields are rich with both associated and non-associated gas reserves, which, if developed responsibly and sustainably, will offer long-term benefits for our energy security and global sustainability goals.”
Adams credited recent government reforms for creating a more favourable investment climate. In February last year, the government signed three key executive orders that introduced tax incentives, local content compliance requirements, and measures to cut petroleum sector contracting costs and timelines. New tax credits for investments in deep-water oil and gas have also been announced.
“These reforms should form part of a renewed strategy to attract investment through fiscal and regulatory policies that are fit-for-purpose, forward-looking and competitive,” Adams added. He called for further action to address regulatory bottlenecks by streamlining approval processes and ensuring consistent, fair policy enforcement.
Shell, which pioneered production at Nigeria’s Bonga field in 2005, continues to leverage its decades of experience in deep-water operations. The company recently celebrated a major milestone when the Bonga field reached a 1-billion-barrel export mark in 2023. In addition, Shell has announced the Final Investment Decision on the US$5-billion Bonga North deep-water project as part of its ongoing commitment to Nigeria’s energy future.
Adams noted that SNEPCo’s work in deep-water operations has not only boosted the country’s oil production but also contributed significantly to government revenues through taxes and royalties. He highlighted the development of indigenous businesses through local contract awards and social investments across Nigeria’s six geopolitical zones.
“Shell has powered progress in Nigeria, and our vision is to build on that support to help the country achieve energy security and economic development,” Adams said. “We will continue to take innovative approaches to deep-water development, reduce costs and ensure quicker, better returns for all stakeholders.”
With vast untapped potential lying beneath Nigeria’s deep waters, Adams is optimistic that the country can meet its production targets and implement major development programmes. However, he stressed that a sustained, supportive policy environment is crucial to attracting the capital and innovation needed to responsibly develop these resources.
As Nigeria looks to the future, the message is clear: with the right policies and ongoing investment, deep-water oil and gas could be a game-changer for the nation’s energy security and economic growth.