Business

How to boost local content in oil and gas operations — Shell

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Shell has identified key enablers for boosting local content in the oil and gas 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.

The remark was made by the General Manager, Nigeria Content Development of The Shell Petroleum Development Company of Nigeria Limited (SPDC) Olanrewaju Olawuyi, at a panel session “on “Local Content Private Sector” during the ongoing Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos.

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

“By 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,” 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 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 said 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.

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.”

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