Shell pledges support for reforms in Nigeria’s oil and gas industry

Shell has reaffirmed its commitment to supporting ongoing reforms in Nigeria’s oil and gas industry, describing them as essential for repositioning the sector for growth and profitability.

Speaking at a dinner on Wednesday night at the Nigeria International Energy Summit (NIES) in Abuja, Shell’s Senior Vice President for Nigeria, Marno de Jong, welcomed the regulatory changes spearheaded by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

He noted that the reforms have already led to increased crude oil production, reaching approximately 1.75 million barrels per day, as reported by the agency.

“We welcome the reforms by the NUPRC, which have already improved crude oil production,” Marno de Jong stated. “Sustained reforms will further boost production and generate better returns across the entire industry value chain. Shell remains committed to supporting these changes as part of our longstanding contribution to Nigeria’s development, dating back over 60 years.”

The Petroleum Industry Act (PIA), enacted in 2021, has accelerated reforms in Nigeria’s oil and gas sector, with the NUPRC implementing policies aimed at increasing production and reserves, enhancing cost efficiency, and ensuring stability in host communities.

De Jong highlighted the positive impact of these reforms, citing Shell’s $5-billion Bonga North deep-water project, for which a Final Investment Decision (FID) was made last year.

“Apart from boosting production, the reforms are also attracting investments, as seen with our FID on Bonga North,” he said.

“Nigeria faces stiff competition for capital and investor confidence. To maintain its position as a leading oil and gas destination, the country must continue to rethink strategies and policies, leveraging key enablers such as technology, cost efficiency, and skilled manpower to ensure business growth and sustainability across both international oil companies and independent producers.”