Shell Builds Skills Of 9,500 N’Deltans In Four Years … Facilitates 10 Local Oil Firms

The strict implementation of the Nigerian Content Development initiative in Shell Petroleum Development Company of Nigeria (SPDC) between 2007 and now has resulted in the building of the capacity and capability of more than 9,500 community people to fit into the lucrative oil and gas sector, while also helping to establish over 10 indigenous oil servicing companies to take advantage of the gaps that exist in the industry.

The Tide notes that the actual monetary value of the NCD input into the oil and gas major’s activities in the Niger Delta is yet unknown, but available figures show that in 2008 alone, SPDC spent well over $1billion on local contracts, and more than $718million in 2009 on indigenous contractors’ contribution to capital project uptake in the industry while Gbaran Ubie Integrated Oil and Gas Project has invested more than $1billion on the procurement of needed labour, materials and services in-country between 2007 and 2010.

Speaking at the 2010 edition of the Bureau Chiefs and News Editors’ Forum in Port Harcourt, recently, Shell Africa Regional Manager, Supply and Procurement, Schmidt Laurie, said her mission was to ensure increased participation of Nigerians, particularly host communities, in the oil and gas business, so as to benefit from the resources in their areas, and expressed readiness to create the enabling environment for easy access of indigenous contractors to the necessary tools required to actively participate and succeed in the industry.

In his speech, Shell’s General Manager, Nigerian Content Development, Simbi Wabote, said the company would do anything to increase the number of indigenous people trained to participate in the operations of the oil industry, saying that more local contractors were being encouraged through training and capacity building to tap into the yawning field in order to up their stake in the nation’s economy.

Wabote noted the litany of successes recorded so far, and said that Shell’s effort has resulted in the growth of local contractors and emergence of new oil and gas-related businesses in the region, adding that barring the obviously daunting challenges posed by the dearth of functional steel industry, in addition to the poor power supply situation, the industry has achieved about 40 per cent local content.

Speaking on the catalogue of success stories, Ama Ikuru, Shell’s community content manager, said the initiative was anchored on the need to harness areas where gaps exist, adding that e-contracting and e-tendering were tools for achieving results, and ensuring level playing field for local contractors.

While presenting their score card for the four-year period, the NCD team said they were working with local contractors to build their capacity and capability to compete in the highly capital intensive and technically challenging industry, and also encourage the involvement and participation of indigenous stakeholders to benefit from the resources in the oil and gas industry.

According to available statistics, the NCD team facilitated the training of 44 Niger Delta youths on scaffolding in 2007, supported the development of eight local dredging companies and trained the workforce of three flowline contractors. 

In 2008, the team stated that it ensured the training of 12 abseilers and painters, 75 marine craftsmen, 210 entrepreneurs on business development, built the capacity of 600 vendors, and completed the level two certification of 44 youths in scaffolding. 

The team also explained the engagement of 1,800 contractors on Life Saving Rules for successful business operations, the training of 12 caterers, 270 entrepreneurs, 60 engineers in project management, 100 welders, and 1,000 vendors in general vendor development, just as it supported over 20 local vendors to the United Kingdom TI trade mission in London in 2009.

Between January and May this year, the NCD team noted that it has trained 90 engineers in project management, 100 welders, 60 artisans in plumbing, tiling and painting, 26 slickline engineers, while 32 youths are presently undergoing a one-year City and Guilds level 1 training at Bonny Vocational Centre.

Nelson Chukwudi