April 16, 2024

Shell engages more indigenous contractors in key projects

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Adewale Akindano

Shell has upped its ante in efforts to involve more local companies in key projects as part of local content promotion in oil and gas operations on land and in deep water.

Recently local contractors used a technology for automated tank cleaning at Bonny Terminal for The Shell Petroleum Development Company of Nigeria Limited, SPDC, while on the other hand, locally manufactured stud bolts, nuts and flanges as well as sand screens are being used for well operations.

The high point of this local content promotion was in 2023 when Shell Nigeria Exploration and Production Company Limited, SNEPCo, deployed a team of 33 companies, 87% of which were Nigerian owned, to successfully deliver the Bonga Turn Around Maintenance in eight days ahead of schedule saving on downtime on Bonga.

“Nigerian content is a business enabler for Shell, so, it is in our interest to help build the capacity of Nigerian contractors to handle key contracts,” Shell’s General Manager, Nigerian Content Development, ‘Lanre Olawuyi, said at a panel session on Nigerian content at the just-concluded 8th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos.

He was represented by Manager, NCD Capacity and Supplier Development, Kenechukwu Akubue.

It must be noted that the company has taken steps to encourage and support the target of increasing overall Nigerian content in the oil and gas industry from 20 percent in 2010 to 70 percent by 2070, through contract awards. In 2022 alone, Shell companies in Nigeria awarded contracts worth over $1.9bln to Nigeria registered companies, of which 61% of were indigenous companies with 51% or more Nigerian ownership.

In support of the vision of the Nigerian Content Development and Monitoring Board (NCDMB) for 50,000 indigenous oil and gas professionals with postgraduate qualifications by 2027, Shell and its partners are implementing the Niger Delta Post Graduate Scholarship, with more than 106 beneficiaries studying for master’s degree programmes at top universities in the United Kingdom.

Mr. Olawuyi said: “Shell is grateful for the support of stakeholders, including the NCDMB, our partners and contractors in efforts to promote Nigerian content and we hope to continue the collaboration to further grow this aspect of our business.”

In one of the highlights of the 2024 SAIPEC, SNEPCo emerged the winner of the International Oil Company of the Year 2024 award, which the organisers of the conference, Petroleum Technology Association of Nigeria (PETAN) handed out at the awards dinner.

In 2005, SNEPCo began production at Bonga, Nigeria’s first oil and gas development in more than 1,000 metres of water, using one of the world’s largest floating production, storage and offloading (FPSO) vessels. The operations have resulted in remittance of taxes and royalties to the Nigerian Government, payment of fees to statutory bodies such as the Niger Delta Development Commission and development of indigenous contactors and service providers. Some 97% of SNEPCo workforce is Nigerian and overall, Bonga has helped to create a new generation of Nigerian deep-water professionals.

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