Shell is poised to significantly amplify its investment in Nigeria’s energy sector, focusing on deep water, gas, and renewables, marking a strategic shift towards more sustainable and diversified energy sources. This initiative is part of a broader effort to extend the operational life of the Bonga Floating, Production, Storage, Offloading (FPSO) vessel, Nigeria’s pioneering deep-water project since its inception in November 2005, for an additional 15 years.
During the 8th Sub-Saharan Africa International Petroleum, Exhibition, and Conference (SAIPEC) held in Lagos, organized by the Petroleum Technology Association of Nigeria (PETAN), Elohor Aiboni, the Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCo), shared insights into Shell’s ambitious agenda. Shell aims to mature a series of projects across short, medium, and long-term horizons, provided the fiscal and regulatory frameworks are conducive. The company’s vision encompasses not only bolstering its existing deep-water ventures but also expanding its footprint in gas production and renewable energy sources in Nigeria, a country where it has spearheaded oil and gas exploration for over six decades.
The Bonga Main Life Extension Project is a testament to Shell’s commitment to sustaining its legacy in Nigeria’s energy landscape. The Bonga FPSO, which celebrated a milestone of producing 1 billion barrels of oil last year, stands as a symbol of Shell’s deep-water expertise. SNEPCo is actively pursuing avenues to increase oil output through additional explorations and developments in Bonga North, Bonga South-West, and Nnwa Doro areas. These endeavors are in collaboration with the Nigerian government and various partners, underlining Shell’s integrated approach to advancing the nation’s energy sector.
Moreover, Shell’s engagement in Nigeria’s gas sector is set to escalate, with Shell Nigeria Gas already catering to over 130 industrial and commercial clients. The company has ambitious plans to expand its gas distribution network, aiming to deliver energy equivalent to over 1,000MW to industrial parks and manufacturing entities across Nigeria. This expansion is indicative of Shell’s commitment to enhancing energy access and supporting industrial growth within the country.
The renewable energy initiatives undertaken by Shell in Nigeria further illustrate the company’s dedication to sustainable energy development. Through investments in off-grid solutions, Shell aims to provide remote communities with reliable and sustainable electricity, addressing the critical energy access gap. Shell’s ventures, All On and Daystar Power Solutions, are at the forefront of this effort. All On has already facilitated over 80,000 off-grid connections nationwide, empowering nearly 200 underserved communities and enabling the establishment of 560 new businesses with clean energy. Daystar Power Solutions, on the other hand, is on track to boost its installed solar capacity to 400MW by 2025, positioning itself as a leading provider of solar power solutions for commercial and industrial clients in Africa.
Elohor Aiboni emphasized Shell’s enduring partnership with Nigeria, highlighting the company’s contributions to the country’s development, particularly through energy production. Shell’s strategy involves not only maintaining a competitive edge in the oil and gas industry but also pioneering innovative solutions to reduce costs and enhance operational efficiency. Despite facing challenges, Shell remains committed to playing a pivotal role in Nigeria’s transition towards a more diversified and sustainable energy future.
In summary, Shell’s investment plans in deep water, gas, and renewables in Nigeria are set to catalyze the country’s energy sector, driving economic growth and sustainability. Through the extension of the Bonga project, expansion of gas distribution networks, and pioneering renewable energy initiatives, Shell reaffirms its commitment to Nigeria’s energy development, underpinning the nation’s journey towards achieving energy independence and environmental sustainability.
