SNEPCo, Nine Banks Launch $3bn Finance Facility for Indigenous Oil, Gas Contractors
Shell Nigeria Exploration and Production Company Limited (SNEPCo), in partnership with nine Nigerian banks, has launched a $3 billion contract finance facility to improve access to funding for indigenous oil and gas contractors executing projects for the company.
The initiative, unveiled in Lagos on Thursday, is designed to provide credit support to qualified local contractors and 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 (MoU), the Managing Director of SNEPCo, Ronald Adams, said the facility aligns with the objectives of the Nigerian Oil and Gas Industry Content Development Act by promoting greater in-country value retention.
According to him, the arrangement combines the strengths of all partners, with the banks providing funding and financial discipline, SNEPCo providing contracts and payment domiciliation to reduce lending risks, while contractors are expected to deliver projects efficiently.
The Vice President, Finance, Shell Nigeria, CJ Akwaeze, described the initiative as another demonstration of the company’s commitment to supporting the growth of Nigeria’s oil and gas industry through improved access to finance for local businesses.
Also speaking, the Chairman of the Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, represented by Dr. Joan Faluyi, described the facility as a major boost for indigenous contractors.
He said the initiative would help address financing challenges facing local companies while improving efficiency in project execution across the sector.
Representatives of the participating banks also welcomed the partnership, pledging continued support to strengthen the capacity of indigenous contractors.
SNEPCo noted that Nigerian companies continue to play key roles in its operations, revealing that 43 of the 53 companies involved in the recent turnaround maintenance of the Bonga Floating Production Storage and Offloading (FPSO) vessel were wholly Nigerian-owned.
The company expressed confidence that the new Contract Finance Facility would further enhance the capacity of indigenous firms and improve value delivery in Nigeria’s deepwater oil and gas operations.
SNEPCo, Nine Banks Launch $3bn Finance Facility for Indigenous Oil, Gas Contractors