SNEPCO to Spend $6bn on Deepwater Projects

By Ndubuisi Micheal Obineme

The Shell Nigeria Exploration and Production Company, SNEPCo has been projected to spend $6billion on deepwater projects in Nigeria from 2023 to 2032.

The Country Chair and Managing Director of Shell Petroleum Development Corporation (SPDC), Mr Osagie Okunbor, announced this during a panel session at the fourth edition of Nigerian Oil and Gas Opportunity Fair, NOGOF2023 organized by the Nigerian Content Development and Monitoring Board (NCDMB) in Yenagoa, Bayelsa State.

Okunbor, while announcing the proposed Deepwater projects disclosed that over $3billion capital expenditure has been projected on growing domestic gas supply between 2023-2030.

He said over 1billion standard cubic feet of gas per day is expected from from its onshore projects between 2023-2030. This, he said, would supply gas to five projects namely, Assa North, Okpokonou, Freezo, Obele/Rumuekpe and Brass fertilizers.

The SCiN boss further explained that SNEPCO's deepwater growth centred on near term opportunities are infill projects and Bonga main life extension; for midterm opportunities, Bonga North, while long term opportunities are Bonga SW and Nnwa Doro.

Additionally, he said facilities to be set up include subsea manifolds, skids, etc. According to him, these projects will provide over 1,000 potential job opportunities.

He revealed that the work scope would include FEED and detailed design, Allocation and fiscal meters, compressors, dehydration units; fabrication – structural steel fabrications; pressure vessels; and civil works.

However, the SPDC boss highlighted some issues that must be fixed in order to unlock investments in the country, nothing that partners alignment and approvals are critical to advancing projects.

"Fix challenges that diminish the bankability of Nigeria's energy industry, namely operational challenges – security, crude theft, community. Legacy debts, poor governance framework, sanctity of contracts etc", he said.