With billions of dollars at its disposal, Shell Petroleum Development Company (SPDC) has expressed its readiness to make a significant impact on Nigeria’s gas and deep-water assets, leveraging on President Bola Tinubu’s commitment to policy consistency and a better business climate to attract investment.
This was revealed in a statement by Dele Alake, Special Adviser, Special Duties, Communication, and Strategy on Monday, after a delegation led by Ms Zoe Yunovic, the Global Upstream Director, Shell Petroleum Development Company paid a courtesy visit on President Bola Tinubu at the State House, Abuja.
EnergyDay’s check showed that Shell Petroleum Development Company (SPDC) is a joint venture between Shell and the Nigerian National Petroleum Corporation (NNPC) that operates onshore and offshore oil and gas assets in Nigeria.
SPDC and its partners plan to invest $6.5 billion to boost production of Nigeria’s offshore oil and gas. Additionally, in 2022, SPDC, SNEPCo, and SNG spent $34.29 million funding direct social investment in Nigeria.
Shell has stakes in 19 oil Mining Leases in Nigeria’s onshore oil and gas joint venture, and SPDC controls a 30% stake in the joint venture.
EnergyDay also gathered that SPDC has invested $2.4 billion in the Gbaran-Ubie Phase Two bundle, which is expected to have a peak production of 215 kboe per day. It is also planning to spend $10 billion in its projects in Nigeria.
According to Alake, President Tinubu welcomed the SPDC’s offer for more investments in the Nigerian oil and gas sector, adding that such investments are needed now more than ever to enable the government to meet its obligations.
The President recalled that attracting fresh investment was “a promise I made personally to Nigerians. Whatever it takes, I will fulfil that promise to Nigerians.”
He also reiterated that Nigeria is ready for business, assuring the Shell management and other investors of his administration’s willingness to maintain an open-door policy and address their concerns.
“We are open for business. We are serious. I give you the assurance of consistency in policy,” he said.
The President Tinubu therefore assured that his government was removing all forms of bottlenecks in order to ensure Nigeria became an attractive investment destination.
Ms Yujnock, in her presentation earlier during the conversation with the President applauded what she described as “incredibly strong start” of the Tinubu presidency and expressed optimism that the “bold” steps taken by the government would renew Nigeria’s pride of place as an investment destination.
Yujnock said SPDC was willing to ramp up investment in the country, especially in the areas of gas and deep-water assets, by pumping in billions of dollars.
She said Nigeria remains a strategic investment country for the company in view of the long history between the two entities and the prospects held by the county’s oil and gas sector.
SPDC therefore emphasised that such investments are needed now more than ever to enable the government to meet its obligations.