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BAYELSA, Nigeria — In a bid to enhance local content in the Nigerian oil and gas industry, Shell Companies in Nigeria said they awarded contracts worth $1.98 billion to indigenous companies in 2023.
The contracts, awarded by the Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell Nigeria Exploration and Production Company Limited (SNEPCo), and Shell Nigeria Gas (SNG), indicated a three percent increase from $1.92 billion, recorded in 2022.
SNEPCo’s Managing Director, Ron Adams, made this revelation 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, who was represented by Business Opportunity Manager for SNEPCo’s Bonga South-West Aparo Project, Olaposi Fadahunsi, said several benefitting companies had taken advantage of the patronage to expand their operations and improve their expertise and financial strength.
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.
"Shell companies also 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 (NNPC), TotalEnergies and Nigeria Agip Oil Company Limited (NAOC)."
Earlier, the Minister of State for Petroleum Resources (oil), Heineken Lokpobiri said, Nigeria will continue to produce fossil fuels despite pressure on African nations, due to 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 Nigerian National Petroleum Company Limited, NNPCL, said it has deepened its operations through strategic restructuring of critical operational units with the aim to increase oil production and sustain indigenous capacity.
The Group Chief Executive Officer (GCEO) of the Company, Mele Kyari, who was represented by the Executive Vice President, Upstream, Mr. Udobong Ntia, emphasized the significance of the PNC Forum as a unique opportunity for stakeholders to reflect on progress, share best practices and identify strategic opportunities for growth.
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.”
