Shell Companies Enhance Local Content in Nigeria with $1.98 Billion Contracts in 2023
In a significant move to boost local participation in the Nigerian oil and gas sector, Shell Companies announced the awarding of contracts amounting to $1.98 billion to indigenous firms in 2023. This represents a three percent increase from the $1.92 billion in contracts awarded in 2022.
The Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell Nigeria Exploration and Production Company Limited (SNEPCo), and Shell Nigeria Gas (SNG) were all involved in this initiative, aimed at enhancing local content in the industry. Ron Adams, Managing Director of SNEPCo, shared these details at the 13th edition of the Practical Nigerian Content (PNC) forum held in Yenagoa, Bayelsa State, themed “Deepening the Next Frontier for Nigerian Content Implementation.”
Adams, represented by Olaposi Fadahunsi, Business Opportunity Manager for SNEPCo’s Bonga South-West Aparo Project, noted that many of the local companies that benefited from these contracts have utilized the opportunity to expand their operations and bolster their technical and financial capabilities. He stated, “Shell companies execute a significant portion of their activities through contracts with third-party firms, and Nigeria-registered companies have been pivotal in driving this initiative aimed at propelling Nigeria’s growth.”
Moreover, Shell companies have launched projects under the Human Capital Development Fund, contributing to the establishment of a learning center and digital library at Niger Delta University, as well as an Information Technology Hub at the Federal University of Technology. Both projects were inaugurated this year, further reflecting Shell’s commitment to local development in partnership with its Joint Venture partners, which include the Nigeria National Petroleum Company Limited (NNPC), TotalEnergies, and Nigeria Agip Oil Company Limited (NAOC).
In related remarks, Heineken Lokpobiri, the Minister of State for Petroleum Resources, reaffirmed Nigeria’s commitment to continue fossil fuel production despite external pressures urging African nations to transition to alternative energy sources. “Despite the calls for a halt to fossil fuel production, Nigeria will persist in its production efforts; no nation will fully abandon it,” he stated.
Additionally, the Nigerian National Petroleum Company Limited (NNPCL) is enhancing its operational capabilities through a strategic restructuring aimed at optimizing oil production and solidifying local capacity. Mele Kyari, Group Chief Executive Officer of NNPCL, represented by Executive Vice President, Upstream, Udobong Ntia, emphasized the PNC Forum’s role in allowing stakeholders to assess advancements, exchange successful practices, and pinpoint strategic growth opportunities. He remarked, “The PNC has facilitated multiple initiatives to address stakeholder issues and maximize benefits from our abundant resources. Together, we share a responsibility to empower local companies and foster innovation to maintain a resilient oil and gas sector that meets both local and international needs.”
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