Quantifying local content in oil and gas sector

Shell highlights initiatives and commitments to local content

NIGERIA: Shell Nigeria Exploration and Production Company Ltd (SNEPCo) has launched a $3-billion Contract Finance Facility in partnership with nine leading Nigerian banks to help empower Nigerian contractors in the oil and gas sector.

The facility is designed to provide credit support for local contractors executing projects for SNEPCo operations and will be available in both Naira and US Dollars. The participating banks are First Bank, Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, Stanbic IBTC, Standard Chartered Bank, First City Monument Bank and Fidelity Bank.

Nigerian companies have continued to play key roles in supporting SNEPCo’s operation and project execution. Early this year, 43 wholly Nigerian companies took part in the turnaround maintenance exercise at the Bonga Floating Production and Offloading (FPSO) vessel out of the total of 53 companies involved.

The Contract Finance Facility is expected to further boost the capacity of Nigerian companies to deliver even more value in the operations of Nigeria’s premier deepwater producer.

Speaking at the signing of the Memorandum of Understanding in Lagos, the SNEPCo Managing Director, Ronald Adams said, “the initiative reflects the spirit of the Nigerian Oil and Gas Industry Content Development Act, which is aimed at in-country value retention. Our partner banks offer capital and discipline. SNEPCo brings contracts and domiciliation of payments that de-risk lending. On their part, the contractors provide performance. Each is accountable to others, and the mutual accountability gives the arrangement its strength.”

The chairman of indigenous oil and gas contractor group PETAN, Wole Ogunsanya, represented by Dr Joan Faluyi, lauded the scheme as a “gateway to unlocking contractor financing issues which will also drive efficiency in contract execution.”

Quantifying local content

Yesterday Shell issued a statement noting that contracts worth $518 million were awarded to indigenous companies last year in a big boost to the development of Nigerian content in oil and gas operations. Similarly, some 123 indigenous companies were engaged across the value chain of Shell businesses in Nigeria in the same period

“The payments show a strong support for Nigerian service providers in our operations,” said Vice President Commercial Rohan D'Souza while commenting on the figures recently published in Shell’s 2025 Payments to Governments Report. “We see the development of Nigeria companies beyond compliance with laws. It is an integral part of a longstanding strategy to create a win-win relationship with indigenous companies and support them to create more value in the oil and gas industry within and outside the country.”

Over the years, Nigerian companies have provided technical and logistics services among many others with Shell businesses supporting them to improve their expertise and processes.

Rohan pointed out: “When you consider the fact that Shell also paid some $2.016 billion through production entitlements, royalties, taxes, and statutory fees to the Nigerian Government in 2025 alone, you get an idea of the enduring partnership we have forged in the country since we set foot here more than 60 years ago.”

PHOTO: A group picture of Shell leaders and executives of nine Nigeria banks during the signing ceremony of the SNEPCo Contractor Support Fund at Shell Atlantic Towers.