Shell goes bullish in Nigeria’s deepwater with 67.5% stake in OML 118
*Pays $1.208 bn royalties to FG, maps $5 bn for Bonga North project
*Dazzles NOG delegates with elaborate exhibition
Sopuruchi Onwuka
After loading off its onshore exploration and production portfolios with the basket divestment of Shell Petroleum Development Company (SPDC) Limited to Renaissance Group, Shell Nigeria Exploration and Production Company (SNEPCO) is now solidifying its position in the deepwater with increased stake in the prolific Oil Mining Lease (OML) 118 acreage which hosts multiple oilfields.
Shell also declared at the ongoing Nigerian Oil and Gas (NOG) Energy Week in Abuja that its other local affiliates including SNEPCO and Shell Nigeria Gas (SNG) have continued to meet royalty obligations to the Nigerian government, pointing at recent payment of $1.28 billion to federal authorities last year.
In conducting dignitaries round its impressive exhibition pavilion at the conference, the company’s Business Value Manager, Chidi Nkazi, stated that Shell Companies in Nigeria also called SCiN have achieved many milestones in deep-water production, gas supply to industries as well as provision of off-grid and renewable energy.
Highlighting some milestones, Chidi said SNEPCo and SNG paid combined royalties of $1.208 billion dollars to the Nigerian government last year; adding that Shell is also investing in the future of Nigeria with the Final Investment Decision (FID) on the $5.0 billion Bonga North deep-water project.
He also noted that SNEPCo is increasing its interest in the OML 118, which includes the Bonga field, from 55% to 67.5%, through the acquisition of the 12.5% stake of TotalEnergies which earlier announced its divestment from the venture.
According to him, the company’s domestic gas player, SNG, is fueling commerce and industry across cities in the country with supply of cheaper, cleaner and affordable gas energy.
“On its part, SNG serves more than 140 industrial and commercial customers in Ogun, Abia, and Rivers states while All On now has a total portfolio of 51 renewable energy companies, which have delivered more than 210,000 energy connections across the country.
“Daystar Power is offering integrated solar power to businesses in five countries in Africa, including Nigeria,” he listed.
Mr Nkazi also told visitors to the company’s pavilion that Shell has continued to assist in Nigeria’s development through critical interventions in sectors of the socio-economy.
“A robust social investment portfolio by SCiN has also led to the implementation of programmes in education, health, employment generation as well as infrastructural development across communities in Nigeria,” he noted.
Meanwhile, the elaborate exhibition on their petroleum industry operations earned Shell Companies in Nigeria (SCiN) commendation from top government functionaries that attended the 24th Nigeria Oil and Gas Conference and Exhibition in Abuja.
Among the visitors to the stand were the Minister of State for Petroleum, Heineken Lokpobiri and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Bayo Ojulari, who were conducted round by Business Value Manager, Chidi Nkazi.
SCiN are Diamond sponsors of the conference and are among many exhibiting companies from 85 countries. The exhibition features the positive impact of the Shell presence on the development of the country through the businesses run by Shell Nigeria Exploration and Production Company of Nigeria Ltd (SNEPCo), Shell Nigeria Gas (SNG), All On and Daystar Power.
