Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigeria’s target of over 2.4 million barrels per day can be met, if ongoing reforms are sustained.
Managing Director, SNEPCo, Ronald Adams, according to a statement by the Media Relations Manager of the energy firm, Gladys Afam-Anadu, stated this in an address to the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) which began in Lagos on Tuesday.
He was quoted to have told the conference that increased output would improve the country’s earnings and subsequently provide resources to fund development projects, if Nigeria continued with sectoral policies to encourage investments and boost output.
“Deep water is a compelling consideration for Nigeria, if the country must meet its oil production targets and implement ambitious development programmes,” Adams said.
He further said 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.
“The fields can 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.
He welcomed reforms by the government to attract investments, especially the signing of three executive orders in February 2024 on tax incentives, local content compliance requirements and petroleum sector contracting costs and timelines reduction.
Adams said that tax credits were also announced for new investments in deep-water oil and gas.
The reforms, according to him, should be part of a renewed strategy to attract investments “through fiscal and regulatory policies that are fit-for-purpose, forward-looking and competitive.”
The SNEPCo boss added that, for Nigeria to consistently reap the benefits from deep-water operations, it must address regulatory bottlenecks through streamlined and faster approval processes as well as consistent and fair policy enforcement.
