Shell Nigeria Exploration and Production Company (SNEPCo) has partnered with nine Nigerian commercial banks to introduce a $3 billion contract financing programme aimed at improving access to funding for indigenous oil and gas contractors.
The initiative is designed to help local firms executing contracts for SNEPCo obtain financing in both naira and US dollars, easing cash flow challenges and supporting timely project delivery across the sector.
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.
The agreement was formalised through the signing of a Memorandum of Understanding in Lagos.
Speaking at the event, SNEPCo Managing Director Ronald Adams said the financing programme supports the goals of Nigeria’s local content policy by strengthening indigenous participation in the oil and gas industry.
He explained that the arrangement brings together SNEPCo’s contract opportunities, the banks’ financing capabilities, and the contractors’ project execution expertise, creating a structure that reduces lending risks while promoting accountability among all parties.
Shell Nigeria’s Vice President of Finance, CJ Akwaeze, said the programme reflects the company’s continued commitment to supporting the growth and sustainability of Nigeria’s energy industry through improved access to finance.
The Petroleum Technology Association of Nigeria (PETAN) also welcomed the initiative. Speaking through its representative, Dr. Joan Faluyi, PETAN Chairman Wole Ogunsanya described the facility as an important step toward addressing financing challenges that have long affected indigenous contractors and improving project efficiency.
Representatives of the participating banks expressed support for the partnership, noting that the facility would strengthen local companies and enhance their ability to execute contracts successfully.
SNEPCo also highlighted the increasing role of Nigerian firms in its operations. The company disclosed that 43 of the 53 companies involved in this year’s turnaround maintenance of the Bonga Floating Production Storage and Offloading (FPSO) vessel were wholly Nigerian-owned.
According to the company, the new financing scheme is expected to further expand the capacity of indigenous contractors while supporting value creation in Nigeria’s deepwater oil and gas operations.
