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Shell Nigeria Exploration and Production Company Limited (SNEPCo) has launched a $3 billion Contract Finance Facility in partnership with nine leading Nigerian banks to improve access to financing for indigenous contractors executing projects within its operations
The financing initiative is designed to provide credit support in both Naira and US Dollars, helping local contractors overcome funding challenges, improve project delivery, and strengthen 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
The partnership was formalised through the signing of a Memorandum of Understanding (MoU) in Lagos
Speaking at the event, SNEPCo Managing Director Ronald Adams said the initiative aligns with the objectives of the Nigerian Oil and Gas Industry Content Development Act by promoting in-country value retention and strengthening indigenous capacity
According to him, the partnership creates a sustainable financing framework where banks provide capital and financial discipline, SNEPCo provides contracts and payment domiciliation that reduce lending risks, while contractors remain responsible for delivering quality project execution
He noted that the success of the programme depends on the shared accountability of all parties involved
The Chairman of the Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, represented by Joan Faluyi, described the facility as a major step towards resolving financing challenges faced by indigenous contractors
He said easier access to funding would improve contractors’ ability to execute projects efficiently while strengthening local participation across Nigeria’s oil and gas value chain
Representatives of the participating banks also welcomed the initiative, expressing their commitment to supporting local contractors and collaborating with SNEPCo to drive sustainable growth within the energy sector
Nigerian companies have continued to play an increasingly significant role in SNEPCo’s operations. Earlier this year, 43 wholly Nigerian companies participated in the turnaround maintenance of the Bonga Floating Production Storage and Offloading (FPSO) vessel, accounting for the majority of the 53 companies involved in the exercise
The newly launched Contract Finance Facility is expected to further enhance the financial capacity of indigenous businesses, enabling them to execute larger contracts, create employment opportunities, strengthen local content, and contribute to the growth of Nigeria’s oil and gas industry
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