Shell’s commitment to promoting Nigerian content in the oil and gas industry has led to increased participation by indigenous companies, marking a significant milestone in the sector. Indigenous contractors, supported by Shell initiatives, have been instrumental in executing key contracts both onshore and in deep-water operations.
At Bonny Terminal, The Shell Petroleum Development Company of Nigeria Limited (SPDC) engaged local contractors who deployed advanced technology for automated tank cleaning. Furthermore, the utilization of locally manufactured stud bolts, nuts, flanges, and sand screens for well operations underscores the positive impact of Shell’s initiatives on indigenous businesses.
Last year, Shell Nigeria Exploration and Production Company Limited (SNEPCo) demonstrated its commitment to Nigerian content by assembling a team of 33 companies, of which 87% were Nigerian-owned, to successfully complete the Bonga Turn Around Maintenance eight days ahead of schedule. This achievement not only showcased the capabilities of Nigerian contractors but also contributed to operational efficiency.
“Nigerian content is a business enabler for Shell, so it is in our interest to help build the capacity of Nigerian contractors to handle key contracts,” stated ‘Lanre Olawuyi, Shell’s General Manager of Nigerian Content Development. He made these remarks during a panel session on Nigerian content at the 8th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos.
Shell has actively supported the Nigerian government’s vision of increasing overall Nigerian content in the oil and gas industry from 20 percent in 2010 to 70 percent by 2070. In 2022, Shell companies in Nigeria awarded contracts worth over $1.9 billion to Nigerian-registered companies, with 61% being indigenous companies boasting 51% or more Nigerian ownership.
In alignment with the Nigerian Content Development and Monitoring Board’s goal of having 50,000 indigenous oil and gas professionals with postgraduate qualifications by 2027, Shell, alongside its partners, is implementing the Niger Delta Post Graduate Scholarship. This initiative has seen over 106 beneficiaries pursuing master’s degree programs at top universities in the United Kingdom.
Mr. Olawuyi expressed Shell’s gratitude for the support received from stakeholders, including the Nigerian Content Development and Monitoring Board (NCDMB), partners, and contractors, emphasizing their commitment to collaborating further to enhance Nigerian content in the oil and gas sector.
During the 2024 SAIPEC, SNEPCo received recognition as the International Oil Company of the Year, underscoring the company’s contributions to the industry and commitment to sustainable development.
Since 2005, SNEPCo’s Bonga project, Nigeria’s first oil and gas development in over 1,000 meters of water, has not only contributed to the country’s revenue through taxes and royalties but has also played a crucial role in developing local talent, empowering indigenous contractors, and creating a new generation of Nigerian deep-water professionals.
