Shell companies in Nigeria awarded contracts worth $1.98bn to local businesses in 2023, a three per cent increase from the previous year’s $1.92bn.
The contracts, granted by Shell Petroleum Development Company of Nigeria Limited, Shell Nigeria Exploration and Production Company Limited, and Shell Nigeria Gas, aim to support the development of Nigerian content in the oil and gas sector.
This was contained in a statement from the energy firm on Wednesday, detailing its commitment to boosting local expertise and business participation in the country’s oil and gas industry.
The news comes as Shell participates in the 13th edition of the Practical Nigerian Content Forum in Yenagoa, Bayelsa State, which began this week.
Over 700 oil and gas entities are taking part in the four-day event, themed “Deepening the Next Frontier for Nigerian Content Implementation”.
The forum, hosted by the Nigerian Content Development and Monitoring Board, is aimed at reviewing the progress of the Nigerian Oil and Gas Industry Content Development Act, which has been in effect since 2010.
“Shell companies in Nigeria are participating at the forum with a strong message of support for Nigerian companies, having awarded contracts worth $1.98bn to the businesses in 2023 in a continuing effort to develop Nigerian content in the oil and gas industry,” part of the statement read.
The Business Opportunity Manager for SNEPCo’s Bonga South-West Aparo Project, Olaposi Fadahunsi, representing SNEPCo Managing Director, Ron Adams, told participants at the opening of the forum that several benefitting companies had taken advantage of the patronage to expand their operations and improve their expertise and financial strength.
“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.
He commended the NCDMB for ensuring compliance with the Nigerian Content Act.
In addition to contract awards, Shell companies have implemented projects under the Human Capital Development Fund, including the Niger Delta University learning centre and digital library project and the Federal University of Technology Information Technology Hub.
Both projects were inaugurated this year in collaboration with SPDC Joint Venture partners—Nigeria National Petroleum Company Limited, TotalEnergies, and Nigeria Agip Oil Company Limited.
It noted that other projects included the University of Lagos Geosciences Centre of Excellence, Nigeria Diving School, and funding of ongoing research at the University of Ibadan to develop a synthetic-based drilling fluid.
Shell Companies in Nigeria also continue to develop indigenous manpower through scholarship programmes with over 3,772 undergraduate and 109 Niger Delta postgraduate scholarships since 2016.
Adams added: “As we speak, beneficiaries of the 13th edition of the Niger Delta Postgraduate Scholarship awards (beneficiaries) are pursuing their studies in the United Kingdom.
“The employability rate of the scheme is high, with over 98 per cent of the graduates who won the awards securing employment in the oil and gas industry, academia, and information technology, among other sectors, within one year of completing their studies. Nigerian content will continue to be an important part of Shell operations.”
