Financial Energy Review
…….by Ben Ndubuwa….
The energy sector in Nigeria is witnessing a transformative shift, driven by proactive government policies and investments aimed at bolstering national economic growth. Recent developments highlight the growing optimism within the industry, with major players such as Shell Nigeria making substantial commitments to expand production.
In a significant move, Shell Nigeria Exploration and Production Company Limited (SNEPCo) has announced a Final Investment Decision (FID) to invest $5 billion into the Bonga North Deepwater Project. This project, a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, will involve the drilling and completion of 8 production wells and 8 water injection wells. This marks a critical step in ensuring the sustainability of Nigeria’s oil and gas production.
Mr. Johnbosco Uche, FNAPE, President of the Nigerian Association of Petroleum Explorationists (NAPE), underscored the project’s significance, highlighting its role in strengthening the nation’s energy security. “At NAPE, we have consistently advocated for increased, sustainable oil and gas production that positively impacts energy security while supporting the eradication of energy poverty affecting millions of Nigerians,” Uche stated. He also noted that projects like Bonga North reflect the industry’s ability to meet global demands for cleaner, low-emission energy solutions.
The Bonga North initiative is not the only sign of growth in the sector. NAPE also commended the Nigerian government for facilitating key acquisitions that continue to enhance the local oil and gas industry. A notable example is Seplat Energy’s acquisition of ExxonMobil’s Nigerian assets, which marks a significant step toward strengthening domestic energy operations. Additionally, the Nigerian government granted ministerial consent to Renaissance Africa Energy Company Limited, a local consortium, for the acquisition of Shell Petroleum Development Company (SPDC) assets.
These acquisitions underscore a broader effort to encourage local content development and empower Nigerian operators. By transferring ownership to indigenous companies, the country is accelerating capacity building and boosting local revenue generation.
“These strategic investments and asset sales mark a positive trajectory for Nigeria’s energy sector,” Uche concluded. “They not only demonstrate investor confidence but also reaffirm our collective commitment to positioning oil and gas as a cornerstone for sustainable national growth and energy security.”
As Nigeria continues to build a resilient and innovative energy sector, NAPE remains dedicated to fostering collaboration between government, industry stakeholders, and investors to ensure the long-term prosperity of the country’s oil and gas industry.
