Shell Nigeria Exploration and Production Company Limited (SNEPCo) has announced that over 90 per cent of the value of contracts in its operations will now be executed by Nigerian companies. This decision, according to the company, forms part of its broader strategy to advance a sustainable energy future in Nigeria while deepening local participation in the oil and gas sector.
The Managing Director of SNEPCo, Mr Ronald Adams, made this known during a panel session at the recently concluded Nigeria Annual International Conference and Exhibition hosted by the Nigerian Council of the Society of Petroleum Engineers in Lagos.
Adams, who reiterated Shell’s commitment to Nigeria’s energy development, explained that the company is focusing on deploying the right policies, advanced technology, and efficient supply chains while expanding local human capital capacity.
“The question is no longer whether Nigeria will play a key role in the future of energy, but how quickly and effectively we can harness our potentials to deliver affordable, secure, and increasingly cleaner energy for Nigeria, and the world,” Adams said.
While referencing Shell’s performance in the Bonga field one of Nigeria’s most significant offshore oil assets he highlighted how the company has sustained high levels of plant availability nearly two decades after first oil through the use of predictive analytics, integrated data systems, and proactive maintenance.
“That’s performance built on foresight, technology, and a commitment to excellence,” he noted.
According to Adams, SNEPCo is now actively taking steps to ensure that indigenous Nigerian companies are the primary executors of its contracts. “SNEPCo is taking steps to ensure that over 90 per cent of the contract value in its operations is executed by Nigerian companies as it continues to grow the capacity of indigenous contractors in the supply of goods and delivery of services,” he said.
However, the SNEPCo MD acknowledged that Nigeria still lacks the full industrial capacity needed to independently execute oil and gas projects from start to finish. This gap, he said, has often resulted in project scopes being split between Nigeria and foreign countries a situation that not only inflates costs but also delays delivery timelines.
“A lot more needs to be done to scale up local competence. End-to-end industrial capability is limited in Nigeria, which means project scopes often get split between in-country and overseas, increasing cost and, in some cases, delaying delivery,” he said.
To address the industrial deficit, Adams called for significant investments in local fabrication and manufacturing centres, improved regional standardisation and certification processes, and better access to capital for local vendors.
He also emphasised the need for continuous policy reforms to make Nigeria’s business environment more attractive to investors.
“We will continue to stress the need for sustained reforms to ensure stable and investor-friendly fiscal environments that reduce uncertainty. A sustainable energy future for Nigeria and Africa will not emerge by chance. It must be built intentionally, collectively, and courageously,” Adams concluded.
