Shell launches $3bn finance scheme for local oil contractors
Shell Nigeria Exploration and Production Company Limited (SNEPCo) has partnered with nine Nigerian banks to establish a $3 billion contract finance facility aimed at improving access to funding for indigenous oil and gas contractors executing projects for the company.
The financing initiative, unveiled on Thursday, will provide eligible local contractors with access to credit in both naira and United States dollars, helping them execute contracts more efficiently and strengthen their operational capacity.
The participating banks are 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 at the signing of the Memorandum of Understanding in Lagos, SNEPCo Managing Director, Ronald Adams, said the initiative aligns with the objectives of the Nigerian Oil and Gas Industry Content Development Act by promoting greater in-country value retention.
“The initiative reflects the spirit of the Nigerian Oil and Gas Industry Content Development Act, which is aimed at in-country value retention. Our partner banks offer capital and discipline. SNEPCo brings contracts and domiciliation of payments that de-risk lending. On their part, the contractors provide performance. Each is accountable to the others, and the mutual accountability gives the arrangement its strength,” Adams said.
He noted that the partnership would strengthen indigenous contractors by giving them easier access to financing while ensuring efficient execution of projects.
Also speaking, Shell Nigeria’s Vice President, Finance, CJ Akwaeze, said the financing scheme underscores the company’s commitment to supporting the growth of Nigeria’s oil and gas industry through improved access to capital for local businesses.
The Chairman of the Petroleum Technology Association of Nigeria, Wole Ogunsanya, represented by Dr Joan Faluyi, described the facility as a major milestone for indigenous contractors.
