How Shell is boosting local content in its oil and gas operations

Oil major Shell has highlighted key strategic factors to stimulate the development of local content in the Nigerian oil and gas industry. Speaking at the 'Local Content Private Sector' roundtable at the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos, Olanrewaju Olawuyi, Managing Director of Nigerian Content Development at Shell Petroleum Development Company of Nigeria Limited (SPDC), stressed that strategic partnerships, capacity building and regulatory compliance are key to maximising the value derived from local business participation.

Olawuyi stressed the importance of strategic alliances between local companies to enable them to carry out major projects. In particular, he cited the lessons learned from the experience of shell companies in Nigeria and the need to encourage such collaborations.

"By awarding $1.98 billion worth of contracts to Nigerian companies in 2023, Shell has empowered local companies to become regional entrepreneurs," he said.

Increasing the skills and expertise of local businesses is a priority for Shell. To achieve this, the company has put in place training and technology development initiatives, such as the Nigerian diving school aimed at increasing the skills of local divers, as well as the domestication of 3D printing technology and research into a synthetic base fluid for drilling.

"These projects are part of a number of efforts to develop suppliers' capabilities," said Olawuyi.

Compliance with local content policies is a key lever for ensuring that Shell's operations directly benefit the Nigerian economy. It also fosters trust and collaboration with local communities.

"Shell understands that the race for local content is not a sprint, but a marathon, and that it makes good business sense while creating long-term value," explained Olawuyi.

As the energy sector evolves, local content strategies will need to move from compliance to value-driven partnerships, adoption of new technologies and sustainable economic impact. According to Olawuyi, companies that invest in innovation, digital transformation and workforce development will be best placed to shape the next phase of local content growth in Nigeria.