Shell Calls for Local Oil Firms to Strengthen Capacity

Shell has called on indigenous oil and gas companies in Nigeria to prioritise capacity building, form strategic partnerships, and comply with industry regulations to enhance local content and maximise economic benefits.

Speaking at a panel session during the Sub-Saharan Africa International Petroleum Exhibition and Conference in Lagos, Olanrewaju Olawuyi, General Manager of Nigeria Content Development at Shell Petroleum Development Company of Nigeria Limited, highlighted Shell’s commitment to supporting local businesses.

“By awarding contracts worth $1.98bn to Nigerian businesses in 2023, Shell has bolstered the capabilities of local firms, enabling them to become regional contractors,” Olawuyi stated.

He emphasised the importance of training and providing resources to local companies, citing initiatives like the Nigerian Diving School, the localisation of 3D printing technology, and the development of synthetic base fluid for drilling. “These are among many efforts to develop the capacity of suppliers,” he said.

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Olawuyi stressed that adhering to local content policies not only benefits the economy but also strengthens relations with host communities. “Shell has learnt that the local content race is not a sprint but a marathon, and it makes a lot of business sense and creates value long term,” he explained. Looking ahead, he noted that local content strategies must evolve towards value-driven partnerships and technological innovation. “Companies that invest in innovation, digital transformation, and workforce development will lead in shaping the next phase of local content growth,” he added.