Business
Partnerships, Capacity Building, Panacea For Local Content Boost – Shell
Strategic partnerships, capacity building and adherence to regulations have been identified as key enablers for boosting local content in Nigeria’s oil and gas industry.
The General Manager, Nigeria Content Development, Shell Petroleum Development Company (SPDC) of Nigeria Limited, Olanrewaju Olawuyi, stated this at a panel session on “Local Content Private Sector” at the just-concluded Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos.
Drawing lessons from the experience of Shell Companies in Nigeria, Olawuyi stressed the need to encourage indigenous companies to form partnerships to deliver major work scopes, saying that this would help the nation derive more value from the participation of local businesses in such operations.
He said, “awarding contracts worth $1.98 billion to Nigerian businesses in 2023, Shell has bolstered the capabilities of local firms, enabling them to become regional contractors”.
According to him, it is also imperative to improve the expertise of local companies through training and provision of resources.
“At Shell, we have implemented projects like the Nigerian Diving School to increase divers capacity in Nigeria, domestication of 3D printing technology and research work to develop synthetic base fluid for drilling. These are among many efforts to develop the capacity of suppliers”, he stated.
Olawuyi insisted that compliance with local content policies was essential as this had helped to ensure Shell’s operations benefit the local economy while at the same time fostering trust and collaboration with host communities.
In his words, “Shell has learnt that the local content race is not a sprint, but a marathon and it makes a lot of business sense and creates value long term.
“As the energy sector evolves, local content strategies will shift from simple compliance to value-driven partnerships, technology adoption, and sustainable economic impact.
“Companies that invest in innovation, digital transformation, and workforce development will lead in shaping the next phase of local content growth”.
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