Shell has pledged support for the recent reforms in the oil and gas industry in Nigeria, describing them as a good way to reposition the sector for growth and profitability.
“We welcome the reforms by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) which have already improved crude oil production to about 1.75 million barrels per day as reported by the agency,” said Senior Vice President Nigeria Marno de Jong while speaking at a dinner Wednesday night at the Nigeria International Energy Summit (NIES) in Abuja. “Sustained reforms will boost production further and generate better returns in the entire value chain of the industry. Shell is determined to support the reforms as part of our general commitment to the development of Nigeria dating back to over 60 years of operations in the country.”
Reforms in the oil and gas industry have picked up following the enactment of the Petroleum Industry Act (PIA) in 2021 with the NUPRC looking to improve oil and gas production and reserves, achieve cost efficiency and ensure stability in host communities through many initiatives.
Marno said: “Apart from boosting production, the reforms are also attracting investments such as the FID we took last year on the $5-billion Bonga North deep-water project. Nigeria is in stiff competition for capital and confidence and attracting the attention of investors will require continued rethink of strategies and policies. This will enable the country to leverage enablers like technology, cost efficiency and manpower to ensure business growth and sustainability through the operations of international oil companies and independent producers.”