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Local Content
SPDC started its Indigenous Contracting Policy in 1998 and this has evolved into a Nigerian Content development strategy with the goal of facilitating the development of competencies, capabilities and competitiveness of Nigerian contractors. In this way, we strive to support Nigeria’s industrial development in line with our commitment to Sustainable Development.
An hydrocarbon storage vessle manufactured by Dornan Long, a local company
In 2008, Shell-run companies in the country awarded contracts worth more than $900 million to Nigerian companies. This represented more than 90% of the overall number of contracts. It also amounts to 36% of their total value. This is lower than the previous year,mainly because the security and funding crisis reduced our activities in the Delta and, therefore, the amount of work we gave to local contractors there.
The Shell Petroleum Development Company (SPDC) and the Shell Nigeria Exploration and Production Company (SNEPCO) employ around 6,000 direct staff and contractors. More than 90% of them are Nigerian. In 2007, SNEPCO awarded a $10 million contract to Dorman Long – a Nigerian company – to maintain and modify our offshore production facilities in the Bonga field. By the end of 2008, around 75% of Bonga’s core offshore staff were Nigerian.
In March 2008, Nigerians played a central role in the country’s first ever four-dimensional seismic survey that SNEPCO conducted on the field. Forty percent of those involved were Nigerian and they will form the core of senior crew for further surveys in 2009.
And in April 2009, SNEPCO, awarded a key contract to Weltek Limited – a Nigerian company – to build, install and start up new facilities on the Bonga floating, production, storage and offloading vessel that will expand production at the field. This is the first time a wholly locally-owned company has been awarded this specialist work in Nigeria. The facilities themselves were designed by a subsidiary of the Nigerian National Petroleum Company, in collaboration with SNEPCO engineers – nother first.
