Shell Nigeria Exploration and Production Company Limited (SNEPCo) has partnered with nine Nigerian commercial banks to launch 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 scheme, unveiled on Thursday, will provide eligible local contractors with credit facilities in both naira and United States dollars, helping them execute contracts more efficiently while strengthening local participation in Nigeria’s oil and gas industry.
The participating financial institutions include First Bank, Guaranty Trust Bank (GTBank), Zenith Bank, Access Bank, United Bank for Africa (UBA), Stanbic IBTC Bank, Standard Chartered Bank, First City Monument Bank (FCMB), and Fidelity Bank.
Speaking during the signing of the Memorandum of Understanding (MoU) 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.
According to Adams, the arrangement combines the strengths of all stakeholders, with the banks providing capital and financial discipline, SNEPCo offering secured contracts and payment domiciliation to reduce lending risks, and contractors delivering project execution.
“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, while contractors provide performance. Each party is accountable to the others, and that mutual accountability gives the arrangement its strength,” he said.
Vice President, Finance at Shell Nigeria, CJ Akwaeze, described the financing programme as another demonstration of the company’s commitment to supporting the sustainable growth of Nigeria’s oil and gas industry through increased access to funding for indigenous businesses.
Also speaking, the Chairman of the Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, represented by Dr. Joan Faluyi, hailed the initiative as a major breakthrough for local contractors, describing it as a gateway to addressing longstanding financing challenges while improving efficiency in contract execution.
Representatives of the participating banks also welcomed the partnership, pledging continued support for indigenous contractors and expressing confidence that the facility would strengthen local capacity across the sector.
SNEPCo noted that Nigerian companies continue to play a significant role in its operations. The company disclosed that during the recent turnaround maintenance of the Bonga Floating Production Storage and Offloading (FPSO) vessel, 43 of the 53 companies involved were wholly Nigerian-owned.
The company said the new Contract Finance Facility is expected to further expand the capacity of indigenous contractors, deepen local content development, and enhance value delivery across Nigeria’s deepwater oil and gas operations.
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