Shell Deepens Nigerian Investments in Deepwater, Gas, Renewables

February 16, 2024
SNEPCo workers Shell

By Adedapo Adesanya

As it moves away from its onshore assets, Shell is working to extend the life of the Bonga Floating, Production, Storage, Offloading (FPSO) vessel for another 15 years to handle more production from Nigeria’s first deep-water development.

The deep-water project came on stream in November 2005 and the extension project is coming at a time when the company is exploring opportunities in deep-water, gas, and renewables in Nigeria where it pioneered oil and gas production more than 60 years ago.

Speaking at a panel discussion at the ongoing 8th Sub-Saharan Africa International Petroleum, Exhibition and Conference (SAIPEC) in Lagos organised by the Petroleum Technology Association of Nigeria (PETAN), Mrs Elohor Aiboni, the Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCo,), said this is part of its promises to invest in Nigeria.

“Shell is committed to developing its robust portfolio in Nigeria. We are maturing numerous projects planned to come on stream in the short, medium, and long terms with the right fiscal and regulatory framework,” she stated.

Bonga produced the 1 billionth barrel of oil last year and SNEPCo has stepped up efforts for additional volumes from existing assets with more to come on stream in 2024 and beyond.

Other opportunities in deep water include the Bonga North as well as Bonga South-West and Nnwa Doro projects on which SNEPCo is collaborating with the Nigerian government and partners to implement.

Shell is also expanding its gas portfolio with both SNEPCo and The Shell Petroleum Development Company of Nigeria Ltd (SPDC) maturing several projects to deliver gas from their onshore and deepwater assets.

For its part, Shell Nigeria Gas currently serves more than 130 industrial and commercial customers and now it is looking to expand its gas distribution network to deliver over 1,000MW equivalent of energy to industrial parks and manufacturing companies in Nigeria.

Mrs Aiboni explained on investments in renewables, “Off-grid solutions are the quickest way to improve energy access in remote communities, so our investments in this area will provide millions of Nigerians access to reliable and sustainable electricity.” Shell Nigeria is driving uptake in renewable energy through two companies — All On and Daystar Power Solutions.

“All On has facilitated more than 80,000 off-grid connections in the 36 states in Nigeria including the federal capital territory, with nearly 200 underserved communities and 560 new businesses powered with clean energy.

“Daystar plans to increase its installed solar capacity to 400MW by 2025 to become one of Africa’s leading providers of solar power solutions for commercial and industrial businesses.”

“Over the years, Shell has proved to be a reliable partner in the development of Nigeria through our range of business and mainly the energy we produce. We will continue to look for innovative ways to help reduce costs and drive efficiency in our business.

“We want to remain highly competitive and relevant in the oil and gas business and still stand tall despite all the challenges,” Mrs Aiboni added.

Shell recently agreed to sell its Nigerian onshore oil and gas subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a group of five companies, for $2.4 billion.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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