By Christie U. Omonigho
Shell Nigeria Exploration and Production Company Limited (SNEPCo) has said that over 90 percent of every contract value in its operations would now be handled by the Nigerian firms as part of its efforts to build a more sustainable energy future in Nigeria.
Ronald Adams, Managing Director of SNEPCo made this known at a panel session during the just-concluded Nigeria Annual International Conference and Exhibition of the Nigerian Council of the Society of Petroleum Engineers in Lagos.
He said Shell was committed to supporting Nigeria’s energy goals through the deployment of the right policies, technology, efficient supply chains, and local human capital development.
Adams stated: “The question is no longer whether Nigeria will play a key role in the future of energy, but how quickly and effectively we can harness our potentials to deliver affordable, secure, and increasingly cleaner energy for Nigeria, and the world.”
On Shell’s performance on the Bonga field, he said the company was leveraging predictive analytics, integrated data systems, and proactive maintenance to achieve record levels of plant availability nearly two decades after first oil.
“That’s performance built on foresight, technology, and a commitment to excellence,” he said. In recognition of the role of an efficient supply chain, he said, “SNEPCo is taking steps to ensure that over 90 per cent of the contract value in its operations is executed by Nigerian companies as it continues to grow the capacity of indigenous contractors in the supply of goods and delivery of services.”
Roland also expressed concern on what he had referred to as “local end-to-end industrial” capability limitations which have often required split of project scopes between Nigeria and the overseas while serving, not only as high cost triggers but also found to be causing lots of delays.
He therefore pointed the need for investment in local fabrication and manufacturing centers, regional standardization, certification as well as access to capital for local vendors as critical factors in addressing the gap. This was while calling for sustained policy reforms by government to ensure a stable and investor-friendly fiscal environment.
“A lot more needs to be done” he said, “to scale up local competence. End-to-end industrial capability is limited in Nigeria, which means project scopes often get split between in-country and overseas, increasing cost and, in some cases, delaying delivery. To bridge the gap, there is a need to invest in local fabrication and manufacturing centers, regional standardisation and certification, and access to capital for local vendors.
“We will continue to stress the need for sustained reforms to ensure stable and investor-friendly fiscal environments that reduce uncertainty. A sustainable energy future for Nigeria and Africa will not emerge by chance. It must be built intentionally, collectively, and courageously,” he said.