Shell Expands Use of Nigerian Companies in Oil and Gas Operations
Shell’s commitment to “Nigerian content” has resulted in increased involvement of indigenous companies in key oil and gas projects both onshore and offshore.
Local contractors have successfully implemented innovative technologies like automated tank cleaning at the Bonny Terminal, while locally manufactured components like stud bolts, nuts, flanges, and sand screens are now utilized in well operations.
“Nigerian content is not just a requirement, it’s a business enabler for Shell,” stated Shell’s General Manager, Nigerian Content Development, ‘Lanre Olawuyi, during a panel session at the recent 8th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos.
He added, “Building the capacity of Nigerian contractors to handle key contracts is in our best interest.”
Shell’s dedication is evident in their contract awards, significantly contributing to the Nigerian government’s target of increasing overall Nigerian content in the oil and gas industry to 70% by 2070 (from 20% in 2010). In 2022 alone, over $1.9 billion worth of contracts with Nigerian-registered companies were awarded, with 61% going to indigenous companies with majority Nigerian ownership.
Additionally, Shell and its partners support the Nigerian Content Development and Monitoring Board’s (NCDMB) goal of creating 50,000 qualified oil and gas professionals by 2027. Through the Niger Delta Post Graduate Scholarship program, over 106 students are pursuing master’s degrees at UK universities.
“We value the support of stakeholders like the NCDMB, our partners, and contractors in promoting Nigerian content,” said Olawuyi. “We look forward to continued collaboration to further grow this crucial aspect of our business.”
In a notable achievement, SNEPCo, a Shell company, was awarded the “International Oil Company of the Year 2024” by the Petroleum Technology Association of Nigeria (PETAN) at the SAIPEC awards dinner.
SNEPCo started Bonga production in 2005, using one of the world’s largest FPSOs, making it Nigeria’s first deepwater oil and gas development.
This project has generated significant economic benefits including tax and royalty remittances to the government, fees paid to regulatory bodies, and the development of local contractors and service providers. Importantly, 97% of SNEPCo’s workforce is Nigerian, and Bonga has played a vital role in creating a new generation of deep-water professionals in the country.
