Shell Nigeria Exploration and Production Company Limited (SNEPCo) has introduced a $3 billion Contract Finance Facility in partnership with nine Nigerian banks to improve access to funding for indigenous oil and gas contractors executing projects for the company.
The financing initiative, unveiled in Lagos on Thursday, is designed to provide local contractors with easier access to credit in both naira and United States dollars, helping them execute contracts more efficiently.
The participating financial institutions include First Bank, Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, Stanbic IBTC, Standard Chartered Bank, First City Monument Bank, and Fidelity Bank.
Speaking during the signing of the Memorandum of Understanding, SNEPCo Managing Director, Ronald Adams, said the programme supports the goals of the Nigerian Oil and Gas Industry Content Development Act by encouraging greater value retention within the country.
According to him, the arrangement brings together the strengths of all parties involved. While the banks provide financing and financial oversight, SNEPCo contributes project contracts and payment domiciliation to reduce lending risks, while contractors are expected to deliver projects efficiently and remain accountable.
Shell Nigeria’s Vice President of Finance, CJ Akwaeze, said the new facility demonstrates the company’s commitment to strengthening Nigeria’s oil and gas industry by supporting indigenous businesses with improved access to funding.
The Chairman of the Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, represented by Dr. Joan Faluyi, welcomed the initiative, describing it as a significant step toward addressing financing challenges faced by local contractors and improving project execution across the sector.
Representatives of the participating banks also praised the partnership, noting that it would enhance the capacity of Nigerian contractors while reaffirming their commitment to supporting the programme.
SNEPCo highlighted the growing role of indigenous companies in its operations, revealing that 43 of the 53 companies involved in this year’s turnaround maintenance of the Bonga Floating Production Storage and Offloading (FPSO) facility were wholly Nigerian-owned.
The company expressed confidence that the Contract Finance Facility would further strengthen local participation in the oil and gas industry while improving operational efficiency and value creation within Nigeria’s deepwater energy sector.
