Shell outlines steps to boost local content in oil, gas operations
Shell has unveiled a series of strategic initiatives designed to enhance local content in Nigeria’s oil and gas sector, aiming to foster partnerships, build capacity, and ensure regulatory compliance to maximise value for local businesses.
Shell’s Media Relations Manager, Gladys Afam-Anadu, shared the news in a statement issued in Lagos.
She highlighted insights provided by Mr Olanrewaju Olawuyi, General Manager of Nigeria Content Development at Shell Petroleum Development Company of Nigeria Limited (SPDC), during a panel session on “Local Content Private Sector” at the recent Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos.
Drawing from Shell’s extensive experience in Nigeria, Olawuyi underscored the importance of indigenous companies collaborating, particularly when executing large-scale projects.
“In 2023, Shell awarded contracts worth $1.98 billion to Nigerian businesses, significantly enhancing the capabilities of local firms and positioning them as regional contractors,” Olawuyi said.
He also stressed the importance of training and resource allocation to strengthen the expertise of local companies, citing Shell’s initiatives such as the Nigerian Diving School to boost the capacity of local divers, the localisation of 3D printing technology, and ongoing research to develop synthetic base fluids for drilling.
“These efforts form part of Shell’s broader strategy to nurture the development of local suppliers,” he added.
Olawuyi further emphasised the importance of adhering to local content policies, noting, “Compliance is not just beneficial for Shell’s operations; it also strengthens the local economy and fosters trust with host communities.”
He elaborated on Shell’s long-term vision, saying, “We’ve learned that local content development is not a sprint, but a marathon. It delivers value over time and makes strong business sense.”
Looking ahead, Olawuyi explained that as the energy sector continues to evolve, local content strategies would shift from simple compliance to a focus on value-driven partnerships, technology adoption, and sustainable economic impact.
He concluded by stressing that companies investing in innovation, digital transformation, and workforce development would be at the forefront of the next phase of local content growth in Nigeria.