TERepublic November Issue 2021

NIGERIA OIL AND GAS
Shell Awarded $800 Million Worth of Contracts to Nigerian
Companies
Shell Companies in Nigeria ((SCIN)
has said that it awarded 100 per
cent of its local contracts worth
$800 million to Nigerian companies in
2020.
Shell Country Chairman in Nigeria Mr.
Osagie Okunbor, said this recently in Lagos
a t t h e A s s o c i a t i o n o f E n e r g y
Correspondents of Nigeria (NAEC) 2021
Strategic International Conference.
According to him loans were also given to
Nigerian vendors to help them improve
their tendering opportunities.
“In 2020, 100 per cent of Shell contracts,
worth $800 million, were awarded to
Nigerian companies,” Mr Okunbor said
during the NAEC conference which has
mythe theme, ‘Petroleum Industry Act:
Energy Transition and the Future of
Nigeria’s Oil and Gas’.
“SCiN has also provided access to nearly
$1.5 billion in loans to 764 Nigerian
vendors under the Shell Contractor
Support Fund since 2012,” he said.
Okunbor who was represented by Ed
Ubong, Managing Director, Shell Nigeria
Gas, said there was a need to build capacity
for local industries to participate in the
supply chain, said “we need to reduce the
industry’s reliance on imports and create
new markets in-country.
“At Shell, we recognise that local content is
key to surviving a post-COVID 19 pandemic
world and Shell will continue to invest in
this space,” he said.
He said Shell, through joint venture
partnership with the government and
communities, was investing in a gas
portfolio that would increase supply for
Nigerian and international customers via
an expanding network of plants, pipelines
and export terminals.
“We remain committed to building
capacity and competence in the country to
enable more Nigerians to participate
directly and indirectly in the gas value
chain and pump more money into the local
economy by supporting Nigerian
companies,” Mr Okunbor said.
He said harnessing Nigeria’s vast gas
resources was key to developing the
country.
“Natural gas gives us the ability to lift
Mr. Osagie Okunbor Managing Director, The Shell
Petroleum Development Company of Nigeria (SPDC)
and Country Chair of Shell Companies in Nigeria.
millions of people out of energy poverty, giving
them the power to improve their physical
health, wellbeing and standard of living. It also
gives us a pathway to economic growth and
development.
“This is not only through direct exploration and
trading of gas resources but by providing
reliable power supply for the manufacturing
and industrial sectors which are the major
growth engines for developing economies,” Mr
Okunbor said.
Shell has a history of over 50 years in Nigeria
and the largest footprint of all the international
oil and gas companies operating in the country.
Shell has been active in Nigeria since 1937.
Shell companies and investments have played a
pioneering role in onshore, shallow and deep
water oil exploration and production. Shell has
also been at the forefront of gas development,
producing and delivering gas to domestic
consumers and export markets for over 40
years.
The Shell Petroleum Development Company of
Nigeria Limited (SPDC) is the largest Shell
company in Nigeria and produced the country’s
first commercial oil exports in 1958. SPDC is the
operator of a joint venture (the SPDC JV)
between the government-owned Nigerian
National Petroleum Corporation – NNPC (55%
share), SPDC (30%), Total E&P Nigeria Ltd (10%)
and the ENI subsidiary Agip Oil Company
Limited (5%). It is focused on onshore and
shallow water oil and gas production in the
Niger Delta.
Shell Nigeria Exploration and Production
Company (SNEPCO) operates the Bonga field,
Nigeria’s first deepwater oil discovery. The
Bonga facility has the capacity to produce more
than 200,000 barrels per day of oil and 150 MM
standard cubic feet of gas per day.
Shell Nigeria Gas (SNG) is the only international
oil and gas company to set up a gas distribution
company in Nigeria to supply industry
customers. Nigeria LNG (NLNG) is a joint
venture incorporated in 1989 to produce LNG
and natural gas liquids for export. It was
Nigeria’s first LNG project. Shell holds a 25.6%
share, together with NNPC (49%), Total (15%)
and ENI (10.4%).
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