AfriPulse
July 3 (THEWILL) — Shell Nigeria Exploration and Production Company Limited (SNEPCo) has partnered with nine Nigerian banks to launch a $3 billion contract finance facility for indigenous oil and gas contractors.
The financing scheme, unveiled in Lagos on Thursday, is designed to improve access to credit for local firms executing projects for SNEPCo. The facility will be available in both naira and United States dollars.
The participating financial institutions 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, SNEPCo Managing Director, Ronald Adams, said the initiative supports the objectives of the Nigerian Oil and Gas Industry Content Development Act by promoting greater local participation and value retention.
According to him, the arrangement combines financing from partner banks with SNEPCo’s contract awards and payment domiciliation, reducing lending risks while enabling contractors to deliver projects efficiently.
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“Our partner banks offer capital and discipline, while SNEPCo brings contracts and domiciliation of payments that de-risk lending. Contractors, in turn, provide performance, making the arrangement beneficial to all parties”, Adams said.
Vice President, Finance, Shell Nigeria, CJ Akwaeze, described the facility as another demonstration of Shell’s commitment to strengthening Nigeria’s oil and gas industry through increased support for local businesses.
The Chairman of the Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, represented by Dr Joan Faluyi, said the financing initiative would help address long-standing funding challenges faced by indigenous contractors and improve project execution.
Representatives of the participating banks also pledged continued support, noting that the partnership would enhance the capacity of local service providers.
SNEPCo said Nigerian firms already play a significant role in its operations, citing the recent turnaround maintenance of the Bonga Floating Production Storage and Offloading vessel, where 43 of the 53 participating companies were wholly Nigerian. It expressed confidence that the new financing scheme would further deepen local content and improve project delivery.
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