In 2023, Shell Companies in Nigeria awarded contracts totaling $1.98 billion to indigenous firms, reflecting a commitment to increasing local content within the Nigerian oil and gas sector.
This represents a three percent rise from the $1.92 billion awarded in 2022 by Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell Nigeria Exploration and Production Company Limited (SNEPCo), and Shell Nigeria Gas (SNG).
At the 13th Practical Nigerian Content forum in Yenagoa, Bayelsa State, themed “Deepening the Next Frontier for Nigerian Content Implementation,” SNEPCo Managing Director Ron Adams, represented by Business Opportunity Manager Olaposi Fadahunsi of the Bonga South-West Aparo Project, announced that numerous companies have leveraged Shell’s procurement policies to enhance their operational capacity, expertise, and financial standing.
He stated that Shell’s significant reliance on third-party contracts has resulted in substantial benefits for Nigerian-registered companies, directly contributing to national development.
Shell companies have also undertaken initiatives under the Human Capital Development Fund, which encompass the Niger Delta University learning center and digital library project, as well as the Federal University of Technology Information Technology Hub. Both of these projects were launched this year in partnership with SPDC Joint Venture collaborators, including Nigeria National Petroleum Company Limited (NNPC), TotalEnergies, and Nigeria Agip Oil Company Limited (NAOC).
In a statement, the Minister of State for Petroleum Resources, Heineken Lokpobiri, affirmed Nigeria’s continued fossil fuel production, irrespective of global pressure for energy transition. He stated definitively that Nigeria, along with other nations, will not cease fossil fuel production.
Concurrently, the Nigerian National Petroleum Company Limited (NNPCL) reports enhanced operational efficiency via strategic restructuring of key operational units, targeting increased oil production and sustained domestic capacity.
At the 13th Practical Nigerian Content Forum, represented by Executive Vice President, Upstream, Mr. Udobong Ntia, Group Chief Executive Officer (GCEO) Mele Kyari emphasized the forum's crucial role in facilitating stakeholder progress reviews, best practice sharing, and the identification of strategic growth opportunities.
He stated that the PNC has fostered numerous initiatives designed to address stakeholder concerns and optimize the benefits derived from Nigeria’s abundant resources, underscoring the collective responsibility to empower local companies, drive innovation, and cultivate a robust oil and gas sector capable of meeting both domestic and international demands.