Develop local capacity, Shell tasks indigenous oil firms

Shell has tasked indigenous oil and gas companies with the key enablers to boost local content in the industry, saying strategic partnerships, capacity building, and adherence to regulations would help Nigeria derive more value from the participation of local businesses in such operations.

This was disclosed by the General Manager, Nigeria Content Development of the Shell Petroleum Development Company of Nigeria Limited, Olanrewaju Olawuyi, at a panel session on local content at the recently-concluded Sub-Saharan Africa International Petroleum Exhibition and Conference in Lagos.

Drawing lessons from the experience of Shell Companies in Nigeria, Olawuyi said it is necessary to encourage indigenous companies to form partnerships to deliver major work scopes.

“By awarding contracts worth $1.98bn to Nigerian businesses in 2023, Shell has bolstered the capabilities of local firms, enabling them to become regional contractors,” he said.

According to him, there is also the need 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 diverse 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,” Olawuyi noted.

He said compliance with local content policies is essential, as this helps to ensure Shell’s operations benefit the local economy while at the same time fostering trust and collaboration with host communities.

Olawuyi explained, “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.”