Shell Nigeria Exploration and Production Company Limited (SNEPCo) has unveiled a $3 billion Contract Finance Facility aimed at strengthening Nigerian oil and gas contractors and expanding local content participation in the sector.
The initiative, launched on Thursday in partnership with nine leading Nigerian banks, is designed to provide credit support for contractors executing projects under SNEPCo operations.
The facility would be available in both naira and U.S. dollars, offering improved access to financing for project delivery.
The participating financial institutions included 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 a Memorandum of Understanding in Lagos, SNEPCo Managing Director, Ronald Adams, said the programme reflects the objectives of the Nigerian Oil and Gas Industry Content Development Act, which prioritises in-country value retention.
He explained that the arrangement brings together contractors, banks and SNEPCo in a mutually accountable structure designed to reduce financing risks and improve efficiency in project execution.
“Our partner banks offer capital and discipline. SNEPCo provides contracts and ensures payment domiciliation that de-risks lending, while contractors deliver performance,” Adams said.
Shell Nigeria’s Vice President, Finance, C. J. Akwaeze, said the facility demonstrated Shell’s continued commitment to expanding Nigeria’s oil and gas operations and strengthening local participation across the value chain.
Industry stakeholders also welcomed the development.
The Chairman of the Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, represented by the association’s Publicity Secretary, Dr. Joan Faluyi, described the initiative as a major step toward easing contractor financing challenges and improving operational efficiency.
Bank representatives at the event commended SNEPCo for the partnership and pledged continued support for initiatives that empower Nigerian contractors and deepen collaboration within the sector.
Over the years, Nigerian companies have played increasing roles in SNEPCo operations.
Earlier this year, 43 indigenous firms participated in the turnaround maintenance of the Bonga Floating Production and Offloading (FPSO) facility, out of 53 companies involved.
The new financing scheme is expected to further strengthen the capacity of local firms to deliver larger and more complex projects in Nigeria’s deepwater oil and gas sector.
