Shell Companies in Nigeria, including the Shell Petroleum Development Company (SPDC), Shell Nigeria Exploration and Production Company (SNEPCo), and Shell Nigeria Gas (SNG), have awarded contracts worth $1.98 billion to indigenous firms in 2023. This marks a 3% increase from the $1.92 billion awarded in 2022, reflecting Shell’s commitment to enhancing local content and fostering economic growth in the Nigerian oil and gas industry.
The announcement was made during the 13th Practical Nigerian Content (PNC) Forum in Yenagoa, Bayelsa State, themed “Deepening the Next Frontier for Nigerian Content Implementation.”
Shell’s Local Content Commitment
SNEPCo’s Managing Director, Ron Adams, represented by Olaposi Fadahunsi, highlighted how Shell’s local contracting policy benefits Nigerian companies, enabling them to expand operations, boost financial capacity, and enhance technical expertise.
“Shell companies execute a large proportion of their activities through contracts with third parties, and Nigeria-registered companies have been key beneficiaries of this policy aimed at powering Nigeria’s progress,” Adams said.
Investment in Human Capital
Shell has also invested in projects under the Human Capital Development Fund, inaugurating initiatives like the Niger Delta University Learning Centre and Digital Library and the Federal University of Technology Information Technology Hub. These projects were executed in partnership with SPDC’s joint venture partners: NNPC, TotalEnergies, and NAOC.
Nigeria’s Stance on Fossil Fuels
Despite global pressures for a transition to renewable energy, Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources (Oil), reaffirmed Nigeria’s commitment to fossil fuel production.
“All the nations that say we should stop the production of fossil fuel, we will never stop the production in Nigeria; no country in the world will stop it,” Lokpobiri declared, emphasizing the importance of oil to Nigeria’s economy.
NNPC’s Strategic Restructuring
The Nigerian National Petroleum Company Limited (NNPCL) is also taking steps to enhance local capacity and increase oil production through a strategic restructuring of its operational units. The Group Chief Executive Officer, Mele Kyari, represented by Udobong Ntia, stressed the importance of the PNC Forum in driving innovation and collaboration among stakeholders.
“We have a shared responsibility to empower local firms and drive innovation to ensure a robust oil and gas sector that meets both local and global demands,” Kyari said.
Shell’s $1.98 billion investment in Nigerian companies not only underscores its dedication to local content but also highlights the broader strategy to bolster Nigeria’s oil and gas sector. With continued support from stakeholders like NNPC and the government, the industry is poised for sustainable growth and innovation.
