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, Managing Director, Shell Nigeria Exploration and Production Company Limited (SNEPCo,) Ronald Adams has said.
“Deep water is a compelling consideration for Nigeria if the country must meet its oil production targets and implement ambitious development programmes,” Adams said while speaking at the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) which began in Lagos on Tuesday.
According to Adams, 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 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. 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 fiscal and regulatory policies that are fit-for-purpose, forward-looking and competitive.
He said that, for Nigeria to consistently reap the benefits from deep-water operations, it must address regulatory bottlenecks through streamlined and faster approval processes and consistent and fair policy enforcement.
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 1 billion barrels export milestone in 2023. Further developments include the FID on the $5-billion 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 government, development of indigenous businesses through contract awards and implementation of social investments across the six geopolitical zones in Nigeria.
Adams added: “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.”
Meanwhile, the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, has advocated stronger regional collaboration to drive Africa’s energy future.
The minister also reiterated plans of the Africa Energy Bank (AEB) which will fund oil and gas projects and support the continent’s energy transition goals, to be unveiled in the first quarter of 2025
The Bank targets an asset base of $120 billion and will be headquartered in Nigeria.
The fossil fuel-focused bank, a partnership between trade finance institution Afrexim Bank and the African Petroleum Producers Organization, was due to start operations by mid-2024, an Afreximbank official said last year.
Speaking at the ongoing Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos on Tuesday, Lokpobiri called for the creation of frameworks that would encourage collaboration and prevent competition among African nations.
The theme of the 2025 SAIPEC conference is “Building Africa’s Future: Advancing Local Content and Sustainable Development in the Oil and Gas Industry,” brought together key stakeholders in the energy sector.
Lokpobiri highlighted one of Africa’s greatest challenges, which he mentioned to be access to financing for energy development.
He said that as global investment in oil and gas declined due to the energy transition, Africa had stepped up to create its own solutions.
He said that a key initiative in this regard was the establishment of the African Energy Bank (AEB), which would be hosted in Nigeria.
“The African Energy Bank has the potential to revolutionise energy financing across the continent, providing funding tailored to Africa’s unique needs.
“This is not just for oil-producing nations; it is for all of Africa.
“It represents a shift towards financial autonomy, allowing us to move away from dependency on foreign capital and policies that do not align with our priorities,” Lokpobiri said.
According to him, AEB is expected to unlock billions in funding, accelerate infrastructure development, and secure Africa’s energy future.
Lokpobiri said that it required broad support from every African nation, private investors, and regional financial institutions for AEB to succeed,
He added that Nigeria had taken the lead in hosting the bank, but its success would depend on collective commitment across the continent.
“Technology is transforming the world, and Africa must lead, not follow. Let us invest in research, development, and digital transformation.
“Investors trust nations that prioritise accountability—good governance is good business,” he said.
He emphasised that local content was crucial to unlocking Africa’s potential, saying by investing in local businesses, nurturing youth, and transferring critical technology, Africa would not only build an industry but shape its future.
He said that in Nigeria, successful initiatives like the divestment programme which empowered indigenous companies to take ownership of marginal fields, had revitalised production and generated economic opportunities.
“We have witnessed the transformative power of local content.
“By empowering indigenous companies, we’ve seen technical expertise and operational efficiency that have expanded production and retained greater value within our economy.
“Nigeria is now a regional leader, proving that African nations can take full ownership of their resources and transform them into engines of prosperity,” minister said.
According to him, the journey is far from complete. With the right policies, access to financing, and technological support, indigenous operators can tackle larger projects and make new discoveries.
“Africa must unite, share knowledge, close funding gaps, and harmonise regulations to remain competitive.
“Our greatest asset is our collective strength, and together, we can build a brighter future.”
He also described the dawn of a new era for Nigeria’s energy sector—an era of leadership, self-reliance, bold investments, and sustainability.
“Nigeria is not just adapting to change—we are shaping it.
“The future is bright, and we invite the world to join us as we power Africa’s next frontier.
Lokpobiri emphasised that Africa’s true strength lies not just in its oil, gas, and minerals, but in its people.
“We are resilient. We are resourceful. We are ready. By committing to local content, sustainability, and innovation, we will lead the global energy conversation. This is our moment. Let’s seize it,” he added.
The conference recorded about 200 delegates and 100 exhibitors which shows the growing interest and commitment to Africa’s energy future.
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