Shell Unveils Strategies to Enhance Local Content in Nigeria’s Oil and Gas Industry
Shell has outlined key strategies to enhance local content in Nigeria’s oil and gas sector, emphasizing the importance of strategic partnerships, capacity building, and compliance with local regulations. This was revealed by Olanrewaju Olawuyi, General Manager of Nigeria Content Development at The Shell Petroleum Development Company of Nigeria Limited (SPDC), during a panel session on “Local Content Private Sector” at the ongoing Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos.
Drawing from Shell’s extensive experience in Nigeria, Olawuyi highlighted the need to encourage indigenous companies to collaborate in delivering major projects. He noted that Shell’s commitment to local content was demonstrated by awarding contracts worth $1.98 billion to Nigerian businesses in 2023, strengthening the capabilities of local firms and positioning them as competitive regional contractors.
Olawuyi stressed the importance of enhancing local expertise through training and resource provision. “At Shell, we have implemented initiatives like the Nigerian Diving School to boost local divers’ capacity, the domestication of 3D printing technology, and research aimed at developing synthetic base fluid for drilling. These efforts are part of our commitment to developing local suppliers’ capabilities,” he said.
He also emphasized that adherence to local content policies has been crucial in ensuring Shell’s operations positively impact the local economy while building trust and collaboration with host communities.
“Shell has realized that the journey of local content development is a marathon, not a sprint. It’s a long-term investment that makes good business sense and delivers sustainable value. As the energy landscape continues to evolve, local content strategies will shift from mere compliance to value-driven partnerships, technological advancements, and sustainable economic growth,” Olawuyi explained.
He further noted that companies that prioritize innovation, digital transformation, and workforce development would lead the next phase of local content growth.
Shell’s strategic approach to local content reinforces its commitment to Nigeria’s economic development while setting a benchmark for sustainable growth in the oil and gas industry.
