Shell Urges Nigerian Firms to Dive Deeper into Offshore Oil Opportunities
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has emphasised the significant potential for Nigerian enterprises to expand their involvement in deepwater and shallow water petroleum activities.
The company’s leadership outlined numerous avenues through which domestic firms can capitalise on expanding offshore developments.
Ronald Adams, Managing Director of SNEPCo, delivered these remarks during the recently concluded 5th Nigerian Oil and Gas Opportunity Fair (NOGOF), held in Yenagoa, Bayelsa State. His comments were conveyed through a statement distributed to media representatives by Gladys Afam-Anadu, Communications Manager for SNEPCo.
The fair provided a platform for discussing how major offshore developments could serve as catalysts for local business growth. Adams specifically highlighted projects such as Bonga Southwest Aparo as examples of ventures that could substantially benefit Nigerian commercial enterprises.
Charles Oranyeli, Head of Supply Chain, delivered Adams’ presentation at the event, noting additional projects positioned to enhance local business capabilities. These included Bonga North and the Bonga Main Life Extension initiative, both representing substantial opportunities for qualified Nigerian contractors.
SNEPCo leadership stressed that Nigerian companies could significantly enhance their technical capabilities by pursuing more complex, higher-value contractual arrangements. This approach would not only increase revenue potential but also foster specialised expertise within the domestic market.
Adams emphasised SNEPCo’s pioneering role in establishing Nigeria’s deepwater petroleum sector. The Bonga development marked a historic milestone as the nation’s inaugural deepwater exploration and production operation, opening an entirely new frontier for the country’s oil and gas industry.
Since launching this groundbreaking venture, the operations have generated substantial benefits for Nigerian businesses and heightened expectations for expanded local participation in future developments.
The company outlined numerous technical areas where Nigerian firms could expand their service offerings. These encompass logistics support, drilling operations, fabrication services, and the specialised construction of subsea manifolds. Additional opportunities exist in developing mooring and loading systems, along with manufacturing pressure vessels for deepwater applications.
Further possibilities include supplying gas processing equipment specifically designed for deepwater environments, alongside traditional procurement services and civil engineering work in shallow water projects.
SNEPCo’s support for Nigerian contractors and service providers has been ongoing since Bonga commenced production in 2005. This commitment has focused on building both technical systems and human resource capabilities within the domestic market.
“The support has been through the development of systems and a competent workforce, to deliver projects safely, on time, and within budget—not only in Nigeria but also in the West African subregion,” Adams explained.
These developmental efforts have yielded significant results, enabling Nigerian companies to assume important operational roles in managing the Bonga Floating Production, Storage and Offloading (FPSO) vessel. The facility represents a major technological achievement and serves as a training ground for local expertise.
“These efforts have enabled Nigerian companies to play prominent roles in the safe and efficient operations of the Bonga Floating, Production, Storage and Offloading (FPSO) vessel,” he noted.
The Bonga field reached a significant production benchmark when the FPSO achieved its one-billionth barrel of oil output on February 3, 2023. This milestone demonstrates both the field’s productivity and the successful collaboration between international operators and local service providers.
Adams characterised Nigerian content development as fundamentally important to SNEPCo’s business strategy, rather than merely a regulatory obligation.
“SNEPCo sees Nigerian content development as a business driver and not a regulatory requirement,” he stated.
The company’s commitment extends beyond current operations, with plans to continue supporting domestic enterprises in expanding their roles within oil and gas activities.
“SNEPCo will continue to support our companies to play even bigger roles in their support for oil and gas operations,” Adams affirmed.
The Nigerian Content Development and Monitoring Board (NCDMB) served as host for NOGOF, bringing together industry stakeholders to discuss sector development priorities. The event’s theme reflected the industry’s focus on sustainable growth through local capacity building.
The gathering operated under the theme: “Driving Investment and Production Growth: Shaping a Sustainable Future for Nigeria’s Oil and Gas Industry Through Indigenous Capacity Development.”
This theme underscored the critical importance of developing domestic capabilities to ensure long-term sustainability and growth within Nigeria’s petroleum sector.
