Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says the country can achieve its oil and gas production targets and drive development programmes by focusing on its deepwater resources.

The company said the country could achieve this by maintaining policies that encourage investment and enhance output in the sector.

Ronald Adam, the managing director of SNEPCo, disclosed this at the ninth Sub-Saharan Africa International Petroleum Exhibition and Conference on Tuesday in Lagos.

According to Mr Adam, deepwater resources are crucial for Nigeria to meet its oil production goals. He highlighted that the nation’s deepwater fields contain some of the world’s most promising gas reserves.

These, he added, include both associated and non-associated, which have immense untapped potential to contribute significantly to Nigeria’s energy future.

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

“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,” he said.

Mr Adam lauded some of the government’s recent reforms, particularly the signing of three executive orders in February 2024 aimed at attracting investments.

He said these reforms included tax incentives, local content compliance requirements, and efforts to reduce contracting costs and timelines in the petroleum sector.

He also noted the introduction of tax credits for new investments in deepwater oil and gas projects.

“These reforms are a crucial part of a renewed strategy to attract investments through fiscal and regulatory policies that are forward-looking, competitive, and aligned with the needs of the sector,” Mr Adam added.

Mr Adam also mentioned that Nigeria needed to address regulatory bottlenecks by streamlining approval processes and ensuring consistent and fair policy enforcement to ensure continued success in deepwater operations.

Reflecting on Shell’s commitment to unlocking Nigeria’s deepwater potential, Mr 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.

He also highlighted the recent Final Investment Decision 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.

“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.

“This is through continued innovation and collaboration. Shell is confident that Nigeria can harness its deepwater resources to secure a brighter energy future,” he explained.

(NAN)