Briefing Notes


Shell Nigeria Portfolio Oil and Gas

Shell has a history of over 50 years in Nigeria and the largest footprint of all the international oil and gas companies operating in the country. Its companies and investments have played a pioneering role in onshore, shallow and deep water oil exploration and production. Shell has also been at the forefront of gas development, producing and delivering gas to domestic consumers and export markets for more than 40 years.


Shell Petroleum Development Company of Nigeria Limited (SPDC) onshore and shallow water oil and gas; operator and 30% shareholder in SPDC Joint Venture

Shell Nigeria Exploration and Production Company Limited (SNEPCo) deep water oil and gas; operator of Bonga 

Nigeria Liquefied Natural Gas Company Limited (NLNG) LNG joint venture (25.6% Shell share)

Shell Nigeria Gas Limited (SNG) domestic gas distribution

Shell has the following business interests in the Nigerian Oil and Gas sector:


SPDC is the largest Shell company in Nigeria and produced the country’s first commercial oil exports in 1958. SPDC is the operator of a joint venture (the SPDC JV) between the government-owned Nigerian National Petroleum Corporation – NNPC (55% share), SPDC (30%), Total E&P Nigeria Ltd (10%) and the ENI subsidiary Nigerian Agip Oil Company Limited (5%). It is focused on onshore and shallow water oil and gas production in the Niger Delta.

The SPDC JV’s assets include:

  • Around 1,100 producing oil wells
  • A network of approximately 4,000 kilometers of oil and gas pipelines and flowlines
  • Nine gas plants and two major oil export terminals (Bonny and Forcados).


SNEPCo was incorporated in 1993 to develop Nigeria’s deep water oil and gas resources. It is a 100% Shell-owned company and holds interests in four deep water blocks, two of which it operates: OML-118 (Bonga field) and OML-135. SNEPCo also has a 50% interest in OPL-245, which is operated by the ENI subsidiary Nigerian Agip Exploration Limited and a 43.75% interest in OML-133 operated by the ExxonMobil subsidiary Esso Exploration and Production Nigeria (Deepwater) Limited.

  • Bonga was Nigeria’s first oil and gas project in water depths over 1,000 metres
  • It increased Nigeria’s oil capacity by 10% when it began producing in 2005
  • The Bonga Floating Production, Storage and Offloading (FPSO) vessel has a total production capacity of 200,000 barrels of oil per day and 150 million standard cubic feet of gas per day.


NLNG is a joint venture incorporated in 1989 to produce LNG and natural gas liquids for export. It was Nigeria’s first LNG project. Shell holds a 25.6% share, and its partners are NNPC (49%), a Total subsidiary (15%) and an ENI subsidiary (10.4%).

  • The NLNG plant at Bonny Island has six processing units (trains) with total processing capacity of 22 million tonnes a year of LNG and up to 5 million tonnes of natural gas liquids (LPG and condensate) from 3.5 billion standard cubic feet per day of natural gas
  • NLNG accounts for approximately 7% of the world’s total LNG production capacity in 2015
  • SPDC JV in collaboration with NLNG & ExxonMobil supplies power to approximately 12,000 premises on Bonny Island via a rural electrification scheme. The initiative has in recent years provided homes in Bonny communities with 98% uninterrupted power supply.


SNG was incorporated in 1998 to promote gas as a more reliable, cleaner and cost effective alternative to liquid fuels for the Nigerian domestic market. It is a wholly-owned subsidiary of Royal Dutch Shell.

  • The first and so far only wholly-owned subsidiary of an international oil company involved in domestic gas distribution in Nigeria
  • SNG operates a pressure reduction and metering station, and a gas transmission and distribution network of approximately 125 kilometres
  • The network serves 87 industrial customers, majority of which are located in Ogun, Abia, and Rivers States of Nigeria.

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Economic contribution

Economic contribution

Shell Companies in Nigeria (SCiN) are major contributors to the economy, not only through the energy they produce and the revenues they generate for the country, but also via their supply chains, local content and social investment.

Today, Nigeria is one of the biggest oil and gas producers in Sub-Saharan Africa and has the continent’s largest natural gas reserves. Population estimates range from 160-175 million and the United Nations predicts that Nigeria could have the world’s fourth largest population by 2030.

Therefore it is an economic and political imperative for Nigeria to make the most of its energy resources. SCiN work in partnership with the Nigerian government, local and international companies, investors, contractors and communities in meeting this challenge.


In 2015 Shell-operated ventures in Nigeria produced an average of 688,000 barrels of oil equivalent per day (boe/d), with 496,000 boe/d from the Shell Petroleum Development Company of Nigeria Limited operated Joint Venture (SPDC JV) and 192,000 barrels of oil per day from the Shell Nigeria Exploration and Production Company Limited (SNEPCo).

Shell Nigeria Gas Limited (SNG) supplies natural gas to 87 industrial customers and the SPDC JV is the major supplier of gas to Nigeria LNG.

The SPDC JV Afam VI power plant, which has a 650 megawatt generating capability, supplied approximately 14% of the nation’s grid-connected electricity in 2015 and has delivered 20 million Megawatt-hour (MWh) of electricity into the Nigerian grid between its inauguration in 2008 and June 2015.

In 2015 the United Nations Framework Convention on Climate Change (UNFCCC) issued approximately 542,000 Certified Emission Reductions (CER) credits to the Afam VI power plant. This makes the plant the first energy efficiency project on power generation registered from Nigeria and also the first UN registered Clean Development Mechanism (CDM) initiative in the Shell Group.

Nigeria depends on the oil and gas industry for approximately 90% of export income and 75% of overall government revenue. The economic contribution from SPDC JV partners to the Nigerian government between 2011-2015 was $42 billion. The Shell share of royalties and corporate taxes paid to the Nigerian government in 2015 was approximatively $1.1 billion.


SCiN make a major contribution to developing the country’s human capital and contracting capacity. Ninety- three percent of SCiN contracts were awarded to Nigerian companies in 2015.

The use of locally manufactured goods and Nigerian service companies creates jobs in the communities we operate. In 2015, $0.9 billion was spent by SPDC and SNEPCo on local contracting and procurement. Ownership of key assets such as rigs, helicopters and marine vessels is a key focus and SCiN have been recognised for their work in local content, including the Local Content Operator of the Year Award by the Petroleum Technology Association of Nigeria (PETAN) in 2013 and 2015.


SCiN pursue a variety of social investment projects, with particular focus on community and enterprise development, education and health. In 2015 Shell-operated ventures contributed.

  • $145.1 million (Shell share $62.3 million) to the Niger Delta Development Commission (NDDC) as required by law
  • $50.4 million (Shell share $15.4 million) was directly invested by the SPDC JV and SNEPCo in social investment projects.

Collectively, this makes Nigeria the largest concentration of social investment spending in the Shell Group.

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Potential In Natural Gas

Natural Gas

Natural gas is the cleanest burning fossil fuel and is abundantly available in Nigeria, which has the largest reserves in Africa and the ninth largest in the world.

The Nigerian government has made it a priority to unlock the potential of this resource to increase domestic and industrial power supply, raise living standards and support sustainable economic growth and diversification. Nigeria currently has around seven gigawatts (GW) of installed electricity capacity but often less than four GW actually in operation. This gives it less than 10% of South Africa’s electricity generation capacity despite having more than three times the population. Unlocking Nigeria’s gas potential has been identified by the Federal Government as one of the keys to increase the capacity and reliability of electricity supply.


Shell Companies in Nigeria (SCiN) are actively involved in the development and utilisation of natural gas, pioneering its production and delivery to domestic consumers and export markets. Shell has played a key role in Nigeria’s emergence as a global player in Liquefied Natural Gas (LNG) since the 1990s through its 25.6% interest in the Nigeria Liquefied Natural Gas Company (NLNG) joint venture.

As part of its social investment, The Shell Petroleum Development Company of Nigeria Limited operated Joint Venture (SPDC JV) in partnership with NLNG and ExxonMobil provide over 98% uninterrupted power supply to homes on Bonny Island. This has positive ripple effects on the economy, environment and job creation. More than 12,200 premises are currently receiving electricity through this collaboration. A new 25-year joint Memorandum of Understanding was signed with NLNG in October 2015 that is intended to accelerate the development of Bonny communities.

SPDC JV’s market share of domestic gas has reduced through a series of divestments since 2010, which enables Nigerian companies play a more strategic role. SCiN nonetheless remain a crucial part of the national gas energy mix, with the SPDC JV’s Afam VI power plant alone contributing 14% of Nigeria’s grid-connected electricity in 2015. The Afam VI power plant is supplied by the SPDC operated Okoloma gas plant, which also supplies gas directly to the domestic market in the eastern part of the country.

Since 2010 the SPDC JV has also been producing at the Gbaran Ubie integrated oil and gas plant in Bayelsa State, which has the capacity to process one billion standard cubic feet of gas per day for the domestic and export market.

Shell Nigeria Gas Limited (SNG) supplies natural gas used as fuel for various industrial processes and power generation in the Niger Delta and to companies that specialise in the delivery of compressed natural gas to industries located far from existing pipelines. SNG carries out its operations with an all-Nigerian staff and engages the services of a range of Nigerian companies as contractors.


SCiN view natural gas as an area with significant growth potential, given the right investment conditions. SPDC JV is currently working on two projects that will deliver further reductions in gas flaring in addition to boosting the production of natural gas for domestic power generation and export.

NLNG will remain a strategic asset in a growing but increasingly competitive global LNG marketplace, in which the Shell Group has an industry-leading portfolio. The Shell Nigeria Exploration and Production Company’s (SNEPCo) growth ambitions in deep-water also include expansion of natural gas production.

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Potential In Deep Water

Deep water

The deep waters of the Gulf of Guinea hold rich oil and gas resources.

Tapping into these fields will deliver vital energy to help meet growing energy demand in Nigeria and beyond. Shell Nigeria Exploration and Production Company (SNEPCo), which carries out Shell Nigeria’s offshore activities, is drawing on the Shell Group’s industry-leading deep-water expertise to deliver safe, economic projects that provide jobs and training for local people.

In the past decade, industry-wide production from deep-water fields has added more than 800,000 barrels per day to Nigeria’s total oil output, which currently stands at around 2 million barrels per day. The Nigerian government has set ambitious targets to increase total oil production in the next few years and has set its sights on significantly increasing deep-water exploration and production.


The Bonga field in block-118, which started production in 2005, was Nigeria’s first oil and gas production project in more than 1,000 metres of water. SNEPCo used one of the world’s largest floating production, storage and offloading (FPSO) vessels for the project. Three hundred metres long and the equivalent height of a 12-storey building, the FPSO’s deck spans an area as large as three football fields.

The Bonga FPSO has the capacity to produce 200,000 barrels of oil and 150 million standard cubic feet of gas per day. It increased Nigeria’s oil production capacity by 10% when it began producing in 2005.

SNEPCo expanded the project with further drilling of wells in Bonga Phases 2 and 3 and through a subsea tie-back that unlocked the nearby Bonga North West field in August 2014, which has peak production of approximately 40,000 barrels of oil equivalent a day. Bonga Phase 3 achieved first oil in October 2015.


With thousands of people working on deep-water projects across the world, Shell works to ensure that the knowledge gained from one project is transferred to others. By bringing in outside experience, SNEPCo helped create the first generation of Nigerian deep-water oil and gas engineers. Today, 95% of SNEPCo’s staff is Nigerian, with significant levels of Nigeria staff trained or going on cross postings overseas, further increasing local capacity for the future.

Bonga also stimulated the growth of support industries vital to deep-water projects. These benefit the wider economy by boosting demand for a range of goods and services including boats, materials, floating hotels, helicopters and manpower, creating jobs and providing a range of training and maintenance services to the industry locally.

The Bonga North West project reinforced Shell’s commitment to developing the offshore frontier with a strong focus on safety and Nigerian content. The project was completed with over 4 million man hours of work and no time lost to injury. It was the first project to be executed under the Nigerian Oil and Gas Industry Content Development Act and supported the establishment of a local fabrication yard for subsea components, a pipe coating plant and a welding laboratory.

The Bonga North West deep-water development was named Engineering Project of the Year 2015 at the prestigious Platts Global Energy Awards in New York. This represents an important achievement for Nigeria’s deep-water industry.

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Social Investment

4 babies sleeping

Shell Companies in Nigeria (SCiN) work with government, communities and civil society to implement programmes that have a lasting impact on lives in the Niger Delta and beyond. Social investment activities are focused in particular on community and enterprise development, education and health.


LiveWIRE is Shell’s flagship youth enterprise development programme. Launched in Nigeria in 2003, this programme enables young entrepreneurs to convert ideas into real businesses that create products or services as well as employment to the community. Today, LiveWIRE supports Nigeria’s National Youth Policy by encouraging and training young people to start their own businesses by providing start-up funds. More than 250 people were trained in 2015. To date, the programme has trained 6,200 Niger Delta youth in enterprise development and management, and provided business start-up grants to 3,100.

The LiveWire programme was broadened in 2014 to focus on people with physical impairments; 180 physically challenged people have already benefited from training and grants over the last two years. LiveWIRE was also extended into Ogoniland in 2014, with the objective of raising living standards and reducing crude oil theft through the promotion of alternative livelihoods. The first trainees graduated in February 2015.

In 2014 the Shell Nigeria Exploration and Production Company (SNEPCo) awarded 20 young entrepreneurs approximately $4,000 each to fund their business ideas across various sectors including health care, IT, agriculture, manufacturing and retail petroleum products. In 2015 the results of this investment was on display at the Technology Incubation Centre in Lagos where entrepreneurs can further nurture their businesses. SNEPCo ensures that the beneficiaries are not only given funds but that they are also equipped with essential knowledge, business skills and resources to ensure that their businesses are successful and continue trading over the years.


SCiN have a long history of supporting education through scholarships and other initiatives. In 2015, $10.1 million was invested in scholarships by The Shell Petroleum Development Company of Nigeria.

Limited operated Joint Venture (SPDC JV) and SNEPCo. Grants were awarded to 930 secondary school students and 638 university undergraduates during 2015 with a total of 10,401 (secondary) and 3,532 (university) grants awarded over the last five years. The ‘Cradle-to-Career’ programme pays for children from rural communities to attend some of the country’s top secondary schools. Sixty students received scholarships under the programme in 2015, bringing the total number of beneficiaries to 410 since the scheme was launched in 2010.

SCiN continue to focus on building capacity in key technical skills, for example donating equipment to universities to develop capability in the production of drilling mud. Ten graduate scholarships are also awarded annually to students from Rivers, Bayelsa and Delta States to study engineering and geosciences at top universities in the UK (for example, Imperial College, University College London and University of Leeds), building a talent pipeline within host communities. Sixty scholarships have been awarded since inception in 2010. In addition, 40 engineering and geosciences graduates received hands-on training through a one-year internship programme organised by the SPDC JV and the Petroleum Technology Association of Nigeria, a group of indigenous oilfield service companies.

In 2015 Shell unveiled Africa’s first human and solar-powered football pitch at the Federal College of Education (Technical), Akoka in Lagos, Nigeria. More than 10,000 student teachers are exposed to this technology and contribute to inspiring the next generation on smarter energy solutions to power human progress.


SCiN have supported community health projects in the Niger Delta since the 1980s, with equipment and pharmaceutical donations as well as the construction of hospitals and implementation of malaria and HIV/AIDs control programmes. Today, the SPDC JV supports 18 health centres in the region.

SPDC JV’s flagship project is the Obio Cottage Hospital in Port Harcourt, a one-stop health shop set up in 2010, in partnership with the community and Rivers State government. Since its launch, average monthly outpatient visitation jumped from 644 per month to nearly 9,600 monthly in 2015, making Obio one of the most utilized health facilities in the region. One of the success factors is an innovative community health insurance scheme which covers more than 95% of community health care needs. The Obio scheme enables people to pay a subsidised annual premium equivalent to about $50, well below the usual cost of treatment. By the end of 2015 more than 45,000 people had been enrolled in the programme.

The health insurance scheme opens up access to a range of vaccinations, pregnancy and childbirth care and surgical operations, including emergency pediatric care. Since 2010, hospital baby deliveries have risen from 14 each month to 341 per month in 2015. In total, more than 12,000 babies have been delivered safely at Obio from programme inception to date. Virtually all the pregnant women attending antenatal clinics accept HIV counseling and testing, and HIV-positive expectant mothers enroll into the hospital’s Prevention of Mother to Child Transmission (PMTCT) programme. To date, no baby born at Obio has tested positive for HIV, a feat that has been commended and proof that the qualitative PMTCT programme is successful.

Healthcare facts:

  • Two hundred and eighty-eight nurses/midwives from host communities in the Niger Delta completed certification training through SPDC JV scholarships in 2015
  • More than 550,000 people in host communities have benefited from “Health-in-Motion”, SPDC JV’s free medical outreaches since it started eight years ago
  • More than 812 community health workers were trained in diverse health areas to drive quality preventive health care delivery in host communities in 2015
  • The Shell-supported Obio Community Health Insurance schemes have been showcased in various international journals.


Since 2006 the SPDC JV has delivered the majority of its social investment projects via the Global Memorandum of Understanding (GMoU) model. This seeks to increase transparency and accountability around project delivery and give communities greater ownership and control of projects from their inception.

A GMoU is an agreement between SPDC JV and a group or cluster of several communities, based on local government or clan affinity. Under the terms of the GMoUs the communities decide the developments they want, whilst the SPDC JV provides secure funding for five years. At the end of 2015 there were 35 active GMoUs in place, covering 359 communities, fewer than in 2014 due to divestment of certain onshore assets.

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Security, Theft and Sabotage

Security Theft

Incidents in 2015 have reinforced that security must remain a high priority in Nigeria. Crude oil theft, sabotage and illegal refining are the main sources of pollution in the Niger Delta today and were the cause of 85% of spills from The Shell Petroleum Development Company of Nigeria Limited operated Joint Venture (SPDC JV) pipelines in 2015.


Security in the Niger Delta remains a major concern with persisting incidents of criminality, threats from militant elements, violent host community agitations and most recently, offshore piracy. Crude oil theft and related damage to oil and gas facilities in particular continue to present significant security concerns. Oil and Gas operations in parts of the region are severely impacted by these criminal activities. Armed robbery and kidnapping for ransom are also ongoing threats.

The safety of staff and contractors in Nigeria remains a top priority – Shell Nigeria closely monitors the security situation and continues to take all necessary measures to ensure safety and continues to actively implement the Voluntary Principles of Security and Human Rights (VPSHR).


Theft of crude oil on the pipeline network was 25,000 barrels of oil per day (bbl/d) in 2015, which is less than the 37,000 bbl/d in 2014. The number of sabotage-related spills declined to 93 incidents compared with 139 in 2014. In 2015, the decrease in theft and spills was also in part due to divestments in the Niger Delta. However, theft and sabotage are still the cause of 85% of spills from SPDC JV pipelines.

A key priority for Shell globally is to achieve the goal of no spills. Regrettably, in addition to spills caused by criminal activity there were 16 operational spills of more than 100kg in volume from SCiN facilities during 2015. This number is less than the 38 spills in 2014, partly due to divestments but also reflecting continued progress on preventing operational spills. The total volume of oil spilled in operational incidents also fell to 0.2 thousand tonnes from 0.3 thousand tonnes in 2014.


To reduce the number of operational spills, the SPDC JV is focused on implementing its ongoing work programme to appraise, maintain and replace key sections of pipeline. Forty-two kilometers (km) of flow lines and 12km of pipelines were installed in 2015 bringing the total distance of pipelines replaced over the last four years to more than 900km.

In 2015 we sustained surveillance efforts on the SPDC JV pipeline network to ensure that spills are discovered and responded to as quickly as possible. There are also regular over-flights to detect new theft points and we implemented anti-theft protection mechanisms on key equipment.

In 2014, the SPDC JV signed a series of agreements with communities in Ogoniland – which has seen some of the highest rates of theft in recent years – using the Global Memorandum of Understanding (GMoU) model. Under these GMoUs the SPDC JV provides funding to support unarmed community patrols which report incursions and suspicious activity directly to the security forces.

The SPDC JV also works with communities and civil society across the Niger Delta to build greater trust in spill response and clean-up processes. The principal NGO coalition in the Niger Delta, the National Coalition on Gas Flaring and Oil Spills in the Niger Delta (NACGOND), is invited to join joint investigation visits (JIVs), by which the cause and extent of oil spills is assessed. SPDC JV is also the only oil and gas company in Nigeria to publish data on all spills in its areas of operation online.


When a leak is identified, production is suspended and efforts made to contain any spilled oil. In line with government regulations, a JIV team visits the spill site to establish the cause and volume of oil spilt. The team is led by the operating company and includes representatives of the regulatory bodies, police, the state government, NGOs and impacted communities.

The SPDC JV cleans and remediates the area impacted by spills from its facilities, irrespective of cause. In the case of operational spills it also pays compensation, as stipulated by Nigerian law. Once clean-up and remediation are completed, the work is inspected, approved and certified by regulators.

In total, 133 new spill sites requiring remediation were identified in 2015, of which 23 were in Ogoniland. Of the total of 305 sites identified for remediation and certification at the start of 2015, 184 have been remediated and certified. Fifty-five of these sites were in Ogoniland (representing a net reduction of 29% in certified sites in that area during 2015). Nevertheless, access by clean-up teams to identified sites in parts of the Ogoniland continues to be restricted by local communities in some cases.

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Security Theft

The Shell Petroleum Development Company of Nigeria Limited Joint Venture (SPDC JV) carried out exploration and production operations in Ogoniland from the 1950s to the early 1990s. Operations ceased in 1993 following a rise in violence, threats to staff and attacks on facilities. The SPDC JV has produced no oil or gas in Ogoniland since then.

One of the Niger Delta’s main pipelines - the Trans-Niger Pipeline (TNP) - traverses Ogoniland. The SPDC JV also has five non-producing fields and a network of about 100 wells and associated infrastructure in the region, some of which have been vandalized by 3rd parties.


In 2006 the Federal Government of Nigeria commissioned the United Nations Environment Programme (UNEP) to carry out an environmental assessment of Ogoniland. Field work commenced in 2009 and UNEP delivered its report to the government in August 2011.

The report highlighted significant environmental impacts from oil pollution in parts of Ogoniland relating to a variety of causes. It called on the Nigerian government, the oil and gas industry and communities to begin a comprehensive clean-up of the region and take coordinated action to end all forms of illegal oil bunkering, crude theft and artisanal refining of stolen crude oil causing oil contamination in Ogoniland.

Most of UNEP’s recommendations – including the creation of an environmental restoration fund – were directed at the Federal Government and require it to take the lead in coordinating the activities of the numerous stakeholders involved. The report also contained a number of findings and recommendations relating specifically to SPDC as operator of the SPDC JV.

SPDC has initiated and progressed action to implement all the recommendations directed to it by the UNEP report. The 15 SPDC JV sites specifically mentioned in the UNEP report have been re-assessed, and where further remediation was required due to re-pollution incidents, such sites have been remediated and certified by regulators.

SPDC has completed an inventory and physical verification of assets for de-commissioning and has performed a comprehensive review of its remediation techniques, and made a number of changes in line with industry best practice. SPDC JV has also shown leadership by delivering the emergency measures identified in the report related to drinking water in collaboration with Rivers State Government. More detailed information on implementation can be found at

Accelerating implementation of the UNEP recommendations was identified as a priority by the newly elected Buhari administration in 2015. In August 2015, a roadmap was agreed between the government, UNEP and SPDC JV, which included a governance model and funding framework for the Ogoni Restoration Fund recommended by the UNEP.


In May 2014 Ogoni communities took direct responsibility for monitoring the TNP under a series of agreements using the Global Memorandum of Understanding (GMoU) model, the primary delivery mechanism for SPDC JV social investment projects since 2006. Under these new Ogoni GMoUs, SPDC JV provides funding to support unarmed community patrols which report incursions and suspicious activity directly to the security forces.

In 2015, SPDC JV and the Bodo community signed a memorandum of understanding to restart the clean-up of the Bodo creeks affected by operational spills in 2008. The clean-up will be overseen by an independent project director appointed by the Bodo Mediation Team. Contractors for the first phase of clean-up were deployed to the field in 2015 and concluded training of 400 youths on clean-up techniques with demonstration of field practice. However contractor clean-up crews were denied access by the community. Efforts are ongoing to engage all stakeholders so that the clean-up exercise can resume.

Crude oil theft and illegal refining continues to be a challenge in Ogoniland with visible evidence of repeated re-contamination of remediated sites. SPDC JV is therefore pursuing a range of initiatives to prevent and minimise the impact of theft and sabotage in Ogoniland, including community-based pipeline surveillance, awareness campaigns and alternative livelihood programmes. In 2015, SPDC JV introduced an email account and phone line so that communities can directly log complaints or issues with SPDC JV.

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Nigerian Content Development

Shell Nigeria chemical plant tanker

Shell Companies in Nigeria (SCiN) are committed to the development of the Nigerian content of its business as part of its contribution to the sustainable development of the Niger Delta and Nigeria as a whole.


NCD is where value is added to, or created in, the Nigerian economy through the utilisation of Nigerian human and material resources and services without compromising quality, health, safety and environmental standards. SCiN believe that increased Nigerian content would help ensure steady and increased incomes and improved standard of living for Nigerians, particularly those in the Niger Delta.

We recognise the needs of our host communities’ contractors and suppliers and to ensure they receive the opportunity to tender for work. Furthermore, we seek to encourage and promote the development of Nigerian businesses and the transfer of technology from international contractors to Nigerian contractors.


In implementing Nigerian content development, SCiN has taken a structured approach that is underpinned by two core elements:

Increasing Nigerian Content

  • create employment and personal development opportunities for Nigerians
  • maximise the use of Nigerian manufactured goods & services
  • drive structured training & skill development for effective transfer of management and technical skills


Promoting growth of indigenous contractors’ base

  • sustainable development of Nigerian businesses as suppliers, sub-contractors & service providers
  • promote the contribution of our contractors to the development of the national industrial base beyond the Oil & Gas Industry


Below are some of the accomplishments that SPDC JV and SNEPCo have realised as part of their 2015 work plan:

  • Indigenous Asset Ownership: Two light marine vessels (LMVs) were transferred to the Nembe Field Logistics Base (FLB) to support offshore production operations
  • Local Manufactured Products: Certification and coding completed of Stud Bolts and Nuts made by Nigerian Machine Tools, for use in offshore operations
  • Human Capital Development: 50 students have benefitted from the Niger Delta Post Graduate Scholarship scholarships in UK Universities and the sixth batch of 10 students have started studies
  • Research & Development: Continued collaboration with University of Ibadan and University of Port Harcourt on research for locally produced Synthetic Base Fluids
  • Supplier Development: Commenced the second batch of Internship programmes with 40 Nigerian graduates attached to Petroleum Technology Association of Nigeria (PETAN) companies in Port Harcourt and Lagos; Shell Contractors fund schemes have disbursed about $940 million to 220 vendors from its inception in 2012.
  • In 2016 the SCiN will build further on the work they have done in earlier years to develop indigenous capabilities in the country.

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Nigerian Content Development

Harnessing gas

Since 2000 The Shell Petroleum Development Company of Nigeria Limited (SPDC) has worked with its joint venture partners and the Federal Government of Nigeria towards the objective of ending the continuous flaring of associated gas.

In many oil fields gas is produced with crude oil when it is brought to the surface. When SPDC operated Joint Venture (SPDC JV) first built production facilities in the 1950s and 1960s there was little demand or market for this ‘associated’ gas. Consequently the majority of it was burned off – a process called flaring. In recent years, demand for gas in Nigeria and other countries has grown whilst the technology to harness, liquefy and export gas has matured.


Since 2000 all new SPDC JV facilities have been designed to eliminate continuous flaring of associated gas. In parallel, a multi-year programme was implemented to install equipment for capturing associated gas from older facilities. As a result, flaring volume from SPDC JV facilities was reduced by 85% between 2002 and 2015 and flaring intensity (the amount of gas flared per tonne of oil and gas produced) by around 70% over the same period.

A reduction of gas flared from SPDC JV’s operations continued in 2015 with a 28% decrease compared to 2014 and a flaring intensity reduction of 15% from the previous year. Progress was made on several gas gathering projects, which are now at advanced stages of completion. For example, we have installed a gas-gathering plant at the Olama Station that is ready for final commissioning. The Adibawa, Escravos and Otumara Gas Gathering Projects are also at advanced stages of completion. However, the planned start-up dates for two major gas gathering projects - Forcados Yokri Integrated Project (FYIP) and Southern Swamp Associated Gas Gathering (SSAG) Solutions - have been delayed due to a lack of adequate joint-venture funding.

Despite these challenges the overall trend in flares reduction is positive and SPDC JV continues to invest in major gas gathering such as the FYIP & SSAG & Gbaran Phase 2 projects that will drive further reductions.


SPDC JV has monitored ambient air quality levels around its flare sites since 1998 and regularly reports the results to government authorities, as required by Nigerian regulations. Overall, these standards are equivalent to international air quality standards followed in the EU, US and those set by the World Health Organisation. Monitoring work is also carried out by independent contractors.

SPDC JV recognises the importance of addressing local communities’ concerns about flaring, in addition to complying with regulations. For this reason, consultation with community and civil society representatives is an integral part of the broader Environmental Impact Assessments conducted for all major projects and continues after operations commence.

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