Shell Companies in Nigeria announced that they awarded contracts worth $1.98 billion to indigenous companies in 2023, as part of efforts to boost local content in the Nigerian oil and gas sector.
These contracts, awarded by Shell Petroleum Development Company of Nigeria Limited, Shell Nigeria Exploration and Production Company Limited, and Shell Nigeria Gas, reflect a 3% increase from the $1.92 billion awarded in 2022.
SNEPCo’s Managing Director, Ron Adams, disclosed this at the 13th edition of the Practical Nigerian Content forum in Yenagoa, Bayelsa State, which had the theme, “Deepening the Next Frontier for Nigerian Content Implementation.”
Adams, represented by the Business Opportunity Manager for SNEPCo’s Bonga South-West Aparo Project, Olaposi Fadahunsi,
informed participants that several beneficiary companies had leveraged the opportunities provided by the contracts to expand their operations, enhance their expertise, and strengthen their financial position.
He said, “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.”
He also highlighted that Shell companies implemented projects under the Human Capital Development Fund, such as the Niger Delta University Learning Centre and Digital Library and the Federal University of Technology IT Hub. Both projects were inaugurated this year in collaboration with SPDC Joint Venture partners, including NNPC, TotalEnergies, and NAOC.
In his address, the Minister of State for Petroleum Resources (oil), Heineken Lokpobiri stated that Nigeria will continue to produce fossil fuels despite the growing pressure on African nations due to the global energy transition.
He said, “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.”
Meanwhile, the The Group Chief Executive Officer of the Company, Mele Kyari, said that the company has deepened its operations through the strategic restructuring of key operational units, aimed at increasing oil production and sustaining indigenous capacity.
Kyari, represented by the Executive Vice President, Upstream, NNPCL, Mr. Udobong Ntia, at the 13th edition of the Practical Nigerian Content (PNC) Forum, highlighted the importance of the forum as a unique platform for stakeholders to assess progress, share best practices, and identify strategic growth opportunities.
He said, “The PNC has spawned several initiatives to address stakeholder concerns and maximize the benefits of our rich resources. 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.”
