By Ayomide Otitoju
Oil major Shell has reaffirmed its commitment to advancing Nigeria’s local content agenda, announcing that it has awarded contracts valued at $1.98 billion to indigenous companies. The announcement was made during the ongoing Practical Nigerian Content Forum in Bayelsa State.
Shell’s Nigerian subsidiaries, including Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell Nigeria Exploration and Production Company Limited (SNEPCo), and Shell Nigeria Gas (SNG), awarded the contracts in 2023, marking a 3% increase from the previous year’s figure of $1.92 billion.
This year’s forum, which brings together over 700 oil and gas companies, is themed “Deepening the Next Frontier for Nigerian Content Implementation” and aims to assess the progress of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act since its enactment in 2010.
Speaking at the event, Olaposi Fadahunsi, Business Opportunity Manager for SNEPCo’s Bonga South-West Aparo Project, highlighted that Nigerian-registered companies have significantly benefitted from Shell’s contract policy, which aims to boost the country’s oil and gas industry.
“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,” Fadahunsi said. He also praised the Nigerian Content Development and Monitoring Board (NCDMB) for ensuring compliance with the Nigerian Content Act.
Shell’s Continued Investment in Human Capital Development
In addition to the contract awards, Shell has also advanced its Human Capital Development Fund projects. Notable initiatives include the Niger Delta University Learning Centre and Digital Library Project, and the Federal University of Technology Information Technology Hub, both of which were inaugurated earlier this year in collaboration with Shell’s joint venture partners, including NNPC, TotalEnergies, and NAOC.
Other Shell initiatives include the University of Lagos Geosciences Centre of Excellence, the Nigeria Diving School, and ongoing research funding at the University of Ibadan to develop a synthetic-based drilling fluid.
Fostering Indigenous Manpower
Shell’s commitment to local content also extends to education and skills development. Since 2016, Shell has awarded over 3,772 undergraduate and 109 postgraduate scholarships, particularly targeting students from the Niger Delta.
Fadahunsi noted that the Niger Delta Post Graduate Scholarship scheme has achieved a 98% employability rate, with graduates securing jobs in the oil and gas sector, academia, and IT industries within one year of completing their studies.
As Shell continues to foster the growth of indigenous manpower, it remains steadfast in its support for Nigeria’s local content initiatives, emphasizing that it will continue to be a core part of its operations in the country.
