Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has urged Nigerian companies to urgently position themselves to take advantage of a growing wave of opportunities in the country’s offshore and shallow water oil and gas projects.
With massive deepwater projects such as Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension on the horizon, SNEPCo says the time has come for indigenous firms to expand their capacity and move up the value chain — or risk being left behind.
The call was made by Ronald Adams, Managing Director of SNEPCo, while addressing stakeholders at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF), held Thursday in Yenagoa, Bayelsa State.
Register for Tekedia Mini-MBA edition 17 (June 9 – Sept 6, 2025) today for early bird discounts. Do annual for access to Blucera.com.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register to become a better CEO or Director with Tekedia CEO & Director Program.
“Projects like Bonga Southwest Aparo, Bonga North, and Bonga Main Life Extension are not just investments in oil production — they are investments in Nigeria’s industrial future,” Adams said. “Nigerian companies must demonstrate that they are ready, not just in ambition but in technical depth and delivery capability.”
At the heart of Adams’ message is billions of dollars of Nigeria’s deepwater. Nigeria’s oil industry, long battered by pipeline sabotage, underinvestment, and policy inconsistency, is slowly clawing its way back, and the deepwater sector is leading that resurgence.
The $5 billion Bonga North project, a major expansion of the iconic Bonga field, reached the Final Investment Decision (FID) in 2025, giving it the green light to proceed into full development. Together with Bonga Southwest Aparo and the Life Extension project on Bonga Main, these projects are expected to inject significant capital into Nigeria’s oil sector, boost daily production, and create thousands of direct and indirect jobs.
Adams noted that if local companies can rise to the challenge, they stand to benefit immensely not just in revenue but also in technological advancement and international credibility.
He pointed to key service areas such as subsea systems fabrication, gas processing infrastructure, drilling support, FPSO maintenance, and mooring systems as avenues where Nigerian firms can expand their role — if they invest in the required competence and infrastructure.
SNEPCo’s optimism is grounded in what it sees as a proven track record. Since launching Nigeria’s first deepwater oil project in 2005 with the original Bonga field, SNEPCo has worked closely with Nigerian firms to build local capacity — from engineering design to fabrication and project execution.
According to Adams, this partnership has paid off. The Bonga Floating, Production, Storage, and Offloading (FPSO) vessel — a massive floating facility central to Shell’s operations — reached a historic milestone in February 2023 when it produced its one-billionth barrel of oil. Crucially, Nigerian companies played key roles in managing and maintaining this facility.
However, there is still a large gap to fill. Despite years of local content promotion, Nigerian companies continue to struggle to break into high-value segments of offshore oil operations, which are still dominated by international contractors. Industry insiders say this is due to both technical limitations and a lack of financial muscle.
A Regional Opportunity Beyond Nigeria
It’s not just Nigeria that’s on the cusp of a deepwater renaissance. According to a recent report, Nigeria, Ivory Coast, and Mozambique are projected to launch at least 10 offshore oil projects between 2026 and 2027. This broader regional boom offers even more incentive for Nigerian firms to build exportable skills and compete beyond the local market.
Shell sees Nigeria as a potential hub for deepwater oil services in West Africa — but only if its companies act fast.
It is believed that if Nigerian companies can meet the standards required, they won’t just execute Nigerian projects — they’ll be eligible to participate in projects across the continent.
Structural Gaps and Policy Challenges
Nigeria’s offshore oil development is often delayed by regulatory uncertainty, contract disputes, and lengthy approval timelines. Although the enactment of the Petroleum Industry Act (PIA) in 2021 was meant to bring clarity, its implementation has been uneven, creating investor anxiety.
Local contractors also face barriers related to financing, insurance, and equipment procurement — problems that international players are better positioned to navigate.
Several Nigerian oil executives at the event quietly expressed concern that unless government agencies fast-track project approvals and reduce bureaucratic red tape, the opportunity being highlighted may once again be squandered.
A Bigger Vision of Raising National Output
Shell’s renewed emphasis on local participation is also tied to a broader national goal. In February 2025, SNEPCo projected that Nigeria could exceed 2.4 million barrels per day in oil production — but only if deepwater investments are fast-tracked and local capacity is scaled up to match project needs.
With most onshore and shallow water fields declining or compromised by theft and vandalism, offshore fields are now seen as Nigeria’s best shot at reversing years of production decline and revenue shortfalls.
The Nigerian government appears to agree. The Nigerian Content Development and Monitoring Board (NCDMB), which organized NOGOF, has repeatedly stressed that deepwater expansion must be accompanied by deeper local involvement, warning that outsourcing key contracts to foreign firms would amount to another missed opportunity.