• Wednesday, December 06, 2023
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Shell award contracts worth $2.4 billion to Nigerian companies


Shell said it awarded contract worth more than worth $2.4 billion to Nigerian companies last year, one billion dollar more than the amount in 2011, adding that local content is good for Nigeria and for the business and it is determined to raise the game.

This was disclosed at an investment forum jointly hosted by Shell and the United Kingdom Trade & Investment (UKTI), as part of efforts to forge partnerships among businesses in the two countries. About 100 Nigerian and British companies attended an investment summit in Lagos recently.

Some 45 British companies met with their Nigerian counterparts to discuss potential areas of collaboration in Engineering Procurement Installation Commissioning (EPIC) contracts, manufacturing, fabrication and general oil and gas services. It is expected that the partnerships resulting from the summit will help grow the capacity of Nigerian companies to provide goods and services in the oil and gas industry.

Chike Onyejekwe, managing director SNEPCo, while welcoming participants said that Shell is committed to further developing local content in Nigeria.

In a keynote address, Ernest Nwapa, the executive secretary of the Nigeria Content Development and Monitoring Board, commended Shell for the sustained interest in the Nigeria/UKTI investment forum. “Since the first summit, we’ve seen a significant number of companies participating at the event and we hope they will focus on areas that will improve their capability. It is good to see that other IOCs are beginning to follow Shell’s example by organising similar engagements.”

In his own statement, the British High Commissioner to Nigeria, who was represented by Mike Purves, said “I am overwhelmed by the quality of attendees at this event. It shows that the symbiotic commercial interest between Nigeria and Britain is profitable.”

The group general manager NAPIMS represented by Luke Anele, said supply chain transactions account for 65% of the total business value in the oil and gas industry and promised to support IOCs to develop local content in the sector. Honourable Asita, chairman of the House of Representatives Committee on Local Content, in his remarks promised that the law-making chamber would strengthen the Nigeria Oil and Gas Industry Content Development Act and help to create a conducive environment for value-driven partnerships and businesses to thrive.