Shell Nigeria Exploration and Production Company Limited (SNEPCo) is aiming to execute over 90% of its contract value through Nigerian companies as part of its commitment to strengthening local content in the country’s oil and gas sector.
The Managing Director of SNEPCo, Ronald Adams, made this known on Wednesday through a press release seen by Energy in Africa.
The Shell executive stressed that the right policies, alongside technology and human capacity development, would shape a sustainable and secure energy future for Nigeria.
“The question is no longer whether Nigeria will play a key role in the future of energy, but how quickly and effectively we can harness our potentials to deliver affordable, secure, and increasingly cleaner energy for Nigeria, and the world,” Adam said.
Adam said Shell’s continued support for Nigeria’s energy transition goals, noting that SNEPCo is leveraging advanced technologies such as predictive analytics and integrated data systems.
These measures with strategic maintenance planning, he said has helped the company maintain record levels of operational efficiency at the Bonga FPSO, nearly two decades after it began producing oil.
“That’s performance built on foresight, technology, and a commitment to excellence,” Adams said.
Shell’s Bonga field
Shell’s operations are now limited to the offshore terrains.
The company finalised the sale of its entire onshore interest (SPDC JV) to Renaissance Group for $2.4 billion in March 2025.
Renaissance is a consortium of four Nigerian independent oil companies and a foreign partner including;
- ND Western Limited
- Aradel Holdings
- FIRST E&P Company
- Waltersmith Group,
- Petrolin Group (international partner)
Nevertheless, Shell still operates a few key deepwater assets:
- Bonga
- Bolia-Chota/Nnwa Doro
Additionally, it holds non-operating interests in Ehra (43.75%) and 50% in Zabazaba/Etan offshore field.
Of these, the Bonga asset (55%) remains its biggest operated asset in Nigeria. Other partners include ExxonMobil (20%), Oando (12.5%), and TotalEnergies (12.5%).
Bonga is Nigeria’s oldest oil-producing deepwater field. It currently produces around 225,000 barrels of oil equivalent per day.
However, Shell in late 2024 announced a $5 billion FID on the northern segment of the field (Bonga North), which is currently under active development.
Shell sues for more local capacity
Adams stressed that a strong local supply chain remains vital to industrial growth and that SNEPCo is committed to expanding the capacity of indigenous contractors in goods supply and service delivery.
Although Shell’s divestment from Nigeria’s onshore has boosted participation of local companies and even oil output, Adams said “a lot more needs to be done to scale up local competence.”
“End-to-end industrial capability is limited in Nigeria, which means project scopes often get split between in-country and overseas, increasing cost and in some cases delaying delivery,” he said.
To address this, the Shell manager called for increased investment in local fabrication and manufacturing centres, regional standardization and certification schemes, and improved access to capital for local vendors.
He also urged the need for sustained policy reforms to create a stable and investor-friendly fiscal environment that reduces uncertainty and fosters long-term investment in the energy sector.
“A sustainable energy future for Nigeria and Africa will not emerge by chance,” Adams concluded. “It must be built intentionally, collectively, and courageously.”
