Shell spends $800m on Nigerian contracts, named best local content operator

Shell Companies in Nigeria spent over $800m on contracts to Nigerian-registered businesses in 2021, a feat that helped win it the best local content operator in an award organised by the Petroleum Technology Association of Nigeria (PETAN).

Elohor Aiboni, managing director of Shell’s deep-water business, Shell Nigeria Exploration and Production Company, was also named the sole recipient of the PETAN Chairman Outstanding Achievement Award. While her successor in office, Bayo Ojulari, clinched the PETAN Distinguished Achievement Award.

“Shell companies have always stood by local service companies, and they have been part of our local content journey right from the beginning, and have been consistent,” Nicolas Odinuwe, PETAN Chairman, said while handing the award to Shell’s representatives in Port Harcourt, Rivers State.

Odinuwe described Shell companies as a major pillar to the growth of local content in Nigeria by driving the pre-legislation initiatives and providing funding intervention to give opportunity for even start ups in the service sector to play in the oil and gas supply chain.

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Receiving the Shell award, Igo Weli, director, the Shell Petroleum Development Company of Nigeria Limited and Head, Corporate Relations, said: “We are pleased with the country’s success in the Nigerian content story and we are very proud that important stakeholders in the industry continue to recognise Shell’s pioneering and continuous role to indigenise industry know-how so that Nigerians are acquiring necessary skills and Nigerian businesses are participating more in the oil and gas industry.”

Weli, who was accompanied by the Manager, Nigerian Content Development for Shell, Olanrewaju Olawuyi, said, “Last year alone, Shell companies in Nigeria spent $800 million on contracts to Nigerian-registered companies which is the same level as the 2020 spend. Our relationship with Nigeria remains strong and we are focusing our ambitions on our Nigerian deep-water production and gas distribution businesses.”

PETAN is an association of Nigerian Indigenous technical oilfield service companies in the upstream and downstream sectors of the oil and gas industry and has been in the forefront of championing increased local participation in the industry.

In a related development, the Nigerian Content Development and Monitoring Board (NCDMB) has highlighted Shell’s important role in indigenising Nigerian content.

Speaking at the 11th Practical Nigerian Content Forum held in Uyo, Akwa Ibom State last week, Simbi Wabote, NCDMB Executive Secretary, chronicled the history of Nigerian content and paid glowing tribute to Shell for being the first international oil company in Nigeria to demonstrate belief in the capabilities of Nigerian companies and give them the inroad to participate fully in the oil and gas industry.