Shell Grows Oil Output to 514,000 bopd in Nigeria

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The chairman of Shell Companies in Nigeria (SCiN), Osagie Okunbor, has said that the Shell Petroleum Development Company (SPDC) has grown its oil output to an average of 514,000 barrels per day (bpd).

He said the company also has developed additional capacity to produce more. On the other hand, the managing director, Shell Nigeria Exploration and Production Company Limited (SNEPCo), Mr Bayo Ojulari, has advised industry players and firms ready to be creative and develop quality solutions to the challenges that are facing the oil and gas industry, especially those hindering the sector from implementing local content as required by the Nigerian Oil & Gas Industry Content Development (NOGICD) Act.

Okunbor said the SPDC achieved the feat last year when its production rose more than 10% to 514,000 barrels of oil equivalent per day (boe/d) due to enhanced exploration and production activities.

[Also Read] Nigerian Content is a Veritable Tool for National Development – Ojulari

Speaking at the 12th PSRG–Richardson Health, Safety, Security and Environment (HSSE) Forum, Mr. Ojulari said while there is increasing support, regulations are going to get stricter to ensure compliance by firms.

“There are areas where we can quickly close gaps identified in local content implementations”, Ojulari reiterated at the forum, which held as a webinar with the theme “Nigerian Content Development: Facing the future”,

He stressed the need for collaboration among Nigerian firms as a reliable way to harness the different skills that will grow the industry. “Collaboration is key to unlocking value. Don’t do it all alone, you always benefit from partnering,” he said.

Ojulari underlined the need to reinforce established processes and framework that will lead to achieving the goals of Nigerian Content.

He reminded indigenous firms to continue to invest in improving the quality of their products and services.

[Also Read] Nigeria’s Crude Oil Production Falls To 1.57mbpd Record Low

He said: “We cannot implement Local Content at the expense of quality. Don’t compromise on quality or safety. Instead, have a system in place to manage both quality and safety.”

With the extension of the implementation of Nigerian Content to other industries, like mines, power and information technology, Ojulari projected that there is more potential for success in these industries if the learnings from the pioneering example of the oil and gas industry are applied.

“The oil and gas industry is very complex and highly technical. With the success achieved in the oil and gas industry, other industries have good example to follow,” he said.

[Also Read] Be Creative, Collaborate to Gain Local Content Opportunities, Shell MD Tells Nigerian Companies

The SPDC managers said the company fed the domestic market and the export market through the Nigeria Liquified Natural Gas (NLNG) plant, adding that it supplied approximately 50% of the NLNG plant’s capacity.

The company’s gas feed to the NLNG facility in Bonny Island in Rivers State comes largely from the Gbaran-Ubie and Soku plants in Bayelsa and Rivers states.

By Chibisi Ohakah, Abuja

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