Shell awards $518m contracts to indigenous firms, deepens local content development

By Adebayo Obajemu

Shell BP,Shell Companies in Nigeria awarded contracts worth $518 million to indigenous firms in 2025, reinforcing efforts to strengthen local content participation in the country’s oil and gas industry.

The company also disclosed that 123 Nigerian-owned businesses were engaged across various segments of its operations during the year, highlighting its commitment to promoting indigenous capacity and expertise within the sector.

Speaking on figures contained in Shell’s 2025 Payments to Governments Report, the company’s Vice President, Commercial, Rohan D’Souza, said the level of patronage demonstrates Shell’s continued support for local service providers.

According to him, the company views the growth of Nigerian businesses as more than a regulatory obligation, describing it as a key component of its long-term strategy to build mutually beneficial relationships with indigenous enterprises.

D’Souza noted that Shell’s partnerships with local companies have, over the years, helped to enhance technical capabilities and operational efficiency, enabling them to compete effectively both within Nigeria and in international markets.

As part of efforts to further support local contractors, Shell Nigeria Exploration and Production Company Limited (SNEPCo) recently unveiled a $3 billion Contract Finance Facility in collaboration with nine major Nigerian banks.

The financing programme is designed to help indigenous contractors execute projects linked to SNEPCo’s operations and will provide access to funds in both naira and United States dollars.

D’Souza said the initiative reflects Shell’s determination to strengthen the capacity of local firms and expand their participation in the industry.

He also highlighted Shell’s broader contribution to Nigeria’s economy, revealing that the company paid approximately $2.016 billion to the Federal Government in 2025 through production entitlements, royalties, taxes and statutory charges.

The Shell executive said the payments underscore the company’s longstanding partnership with Nigeria, which spans more than six decades, and its continued role in supporting economic development and value creation in the country’s energy sector.