Local Content: Shell awards $518 million contracts to indigenous firms

Shell says it awarded contracts worth $518 million to indigenous companies in 2025, reinforcing its commitment to growing Nigerian content in the oil and gas industry.
The company’s spokeswoman, Gladys Afam-Anadu, disclosed this in a statement on Tuesday. Ms Afam-Anadu said 123 indigenous companies were engaged across Shell’s operations and value chain within the year under review.
Shell’s vice-president (Commercial), Rohan D’Souza, said the payments reflected strong support for Nigerian service providers operating within the company’s businesses.
Mr D’Souza said Shell viewed the development of indigenous companies as more than regulatory compliance, describing it as a long-term strategy that created mutual value. He noted that Nigerian firms have continued to provide technical, logistics and other specialised services, while benefiting from Shell’s capacity-building initiatives.
He also highlighted the recent inauguration of a $3 billion contract finance facility by Shell Nigeria Exploration and Production Company Ltd. (SNEPCo). The facility established with nine leading Nigerian banks is designed to help indigenous contractors execute projects awarded by SNEPCo.
He said the financing package would be available in both Naira and United States dollars to improve contractors’ access to funding.
Mr D’Souza further disclosed that Shell paid about $2.016 billion to the Nigerian Government in 2025.
The payments covered production entitlements, royalties, taxes and statutory fees, underscoring Shell’s longstanding partnership with Nigeria spanning more than six decades.
(NAN)
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