Shell awarded $1.98bn contracts to indigenous firms, NNPCL restructures critical units

Shell Companies in Nigeria said they awarded contracts worth $1.98 billion to indigenous companies in 2023 as part of steps taken to enhance local content in the oil and gas industry. 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, said this 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 informed participants that 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.” According to him, 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). He said 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. He further said “as we speak, beneficiaries of the 13th edition of the Niger Delta Post Graduate Scholarship awards are pursuing their studies in the United Kingdom. The employability rate of the scheme is high with over 98% 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.” On his part, Heineken Lokpobiri, Minister of State for Petroleum Resources (oil), said Nigeria will continue to produce fossil fuels despite pressure the 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,” he said. Just in 2023, the United Kingdom contributed 4.8 percent of global emissions, higher than the entire OPEC countries put together. The entire African continent together contributes about three percent, but the UK contributes 4.8 percent and gave over 100 licences to new companies for new exploration. America is the highest producer of fossil fuels, so why should we stop? Those who are telling us to stop are themselves not stopping, so we should know that it is about politics. Let me also use this opportunity to challenge the industry that with the emergence of Trump, the price of oil may be battered. What I want us to do is to increase our production. Africa already has enough market, we can produce enough fuel to supply the West African region and the entire Africa, but our biggest challenge has to do with funding.” Also, 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.”