Petralon Wins Shell Backing After Hitting First Oil Production

Petralon Energy has secured strong backing from Shell Western Supply and Trading following its achievement of first oil at the Dawes Island Field.

The indigenous operator demonstrated its capability to acquire, develop, finance, and operate oil and gas assets.

During a London event hosted by Shell to mark the milestone, Shell’s chief executive officer, Rodrigo Teixeira de Abreu, commended Petralon’s progress and noted the role of leadership in advancing the project from concept to delivery.

The acknowledgement, witnessed by the company’s founder and chief executive officer, Ahonsi Unuigbe; board chairman, Mutiu Sunmonu; and chief commercial officer, Uduak Equere, validated Petralon Energy’s remarkable feat of transitioning the Dawes Island asset from development to production in 2025.

Petralon Energy’s first oil achievement marks a key milestone for the company and Nigeria’s marginal field programme. The accomplishment is a laudable testament to indigenous operators’ capacity to operate assigned assets responsibly and optimally. Since the licence award in June 2022, Petralon Energy has moved from development planning to drilling and production within a compressed timeline, positioning the company firmly among the more active operators in the current marginal field cycle.

The company has drilled multiple wells, brought the DI-2 well on stream, achieved first oil, and evacuated approximately 158,000 barrels of crude through the Bonny Oil and Gas Terminal.Entering 2026, Petralon has already drilled the third well on the field – DI-3- to total depth and will bring the well onstream before the end of this quarter, with a 4th well planned for later this year (DI-4). The company continues to focus on increasing and stabilising production and operations for the two wells (DI-2 and DI-3), while preparing for the next phase of development, which includes additional wells and permanent field facilities. With its progress at Dawes Island, Petralon Energy occupies a place of pride amongst the more active operators in the current marginal field cycle as the sector adjusts to a new operating landscape. “It’s important to note that acknowledging the company’s quality leadership and disciplined operational process by Shell Trading is not just a commendation, but an explicit expression of trust in the company, and an implied vote of confidence in our oil sector”, Quazim Adeniran, Energy Sector Analyst, said. As the crude oil offtaker and co-financier of the Dawes-Island project, Shell Trading is a significant partner in the Petralon Energy success story. The company provided market access and the financial support that enabled the field’s move into production.As Nigeria increasingly relies on indigenous operators to sustain output following a wave of divestments by international oil companies, operators with the right outlook and capacity to support the national daily output target should be encouraged, because available data indicate that few operators from the marginal field rounds progress to drilling and sustained production within a comparable timeframe.