Shell awards $518m contracts to indigenous companies

Nathan Tamarapreye, Yenagoa

Shell Companies in Nigeria awarded contracts worth $518 million to 123 indigenous companies in 2025, significantly reinforcing its commitment to growing local content in the nation’s oil and gas sector.

The company’s Communications Manager, Mrs Gladys Afam-Anadu, revealed this in a statement issued on Tuesday, 14 July 2026, detailing the extensive engagement of local firms across Shell’s operations and value chain over the past year.

The statement quoted Rohan D’Souza, Shell’s Vice President, Commercial, who emphasised that the payments reflected the energy giant’s robust support for Nigerian service providers.

“The development of indigenous companies is more than regulatory compliance; it is a long-term strategy that creates mutual value,” D’Souza said. He added that Nigerian firms have consistently delivered technical, logistics, and other specialised services while benefiting from Shell’s targeted capacity-building initiatives.

To further ease operational bottlenecks for local players, the statement highlighted the recent launch of a $3 billion Contract Finance Facility by Shell Nigeria Exploration and Production Company Ltd (SNEPCo).

Established in partnership with nine leading Nigerian banks, the facility is designed to help local contractors seamlessly execute projects awarded by SNEPCo. The financing package will be accessible in both naira and United States dollars to improve liquidity and funding access for contractors.

In addition to local supply chain investments, D’Souza disclosed that Shell contributed approximately $2.016 billion to the Nigerian Government in 2025. This payout covered production entitlements, royalties, taxes, and statutory fees, further underscoring Shell’s enduring economic partnership with Nigeria, which has spanned more than six decades.