Home Oil and Gas Shell to deepen investments in deep water, gas, renewables

Shell to deepen investments in deep water, gas, renewables

by Business News Report

Shell says it 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 which came on stream in November 2005. The Bonga Main Life Extension Project comes as the company explores opportunities in deep-water, gas and renewables in Nigeria where it pioneered oil and gas production more than 60 years ago. “Shell is committed to developing its robust portfolio in Nigeria,” Managing Director, Shell Nigeria Exploration and Production Company Limited (SNEPCo,) Elohor Aiboni said 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.)

“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 said Bonga produced one billion barrels 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.  The SNEPCo boss said 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. She noted that 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 deep-water assets.

For its part, Shell Nigeria Gas is currently serving more than 130 industrial and commercial customers and looks to expand its gas distribution network to deliver over 1,000MW equivalent of energy to industrial parks and manufacturing companies in Nigeria. She said: “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.” According to her, “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.”

She added “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 cost and drive efficiency in our business. We want to remain highly competitive and relevant in the oil and gas business and still stand tall in spite all the challenges.”

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