Shell Nigeria Exploration and Production Company Limited (SNEPCo) has partnered with nine Nigerian banks to introduce a $3 billion contract finance facility that will improve access to funding for indigenous oil and gas contractors working on its projects.
The company said on Thursday that the financing program will provide credit support to local contractors handling SNEPCo projects. Contractors will be able to access the facility in both naira and U.S. dollars.
The participating banks include 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 during the signing of the Memorandum of Understanding in Lagos, SNEPCo Managing Director Ronald Adams said the initiative supports the goals of the Nigerian Oil and Gas Industry Content Development Act by encouraging greater value retention within the country.
Adams explained that the banks provide the funding and financial oversight, while SNEPCo contributes contracts and ensures payments are domiciled to reduce lending risks. He added that contractors deliver project execution, creating a system where each party plays a key role in making the arrangement work.
Shell Nigeria Vice President of Finance, CJ Akwaeze, said the financing facility highlights the company’s commitment to supporting the growth and development of Nigeria’s oil and gas industry.
The Chairman of the Petroleum Technology Association of Nigeria, Wole Ogunsanya, represented by Dr. Joan Faluyi, described the facility as a significant step toward improving access to finance for indigenous contractors.
Ogunsanya said the initiative would help address long-standing financing challenges for contractors while improving efficiency in project execution.
Representatives of the participating banks also welcomed the initiative. They said the partnership would strengthen the capacity of local contractors and reaffirmed their commitment to supporting the program.
SNEPCo noted that Nigerian companies continue to play an important role in its operations and project delivery. Earlier this year, 43 of the 53 companies involved in the turnaround maintenance of the Bonga Floating Production Storage and Offloading vessel were wholly Nigerian-owned.
The company added that the Contract Finance Facility will further strengthen the capabilities of Nigerian companies and improve value delivery across the operations of Nigeria’s leading deepwater producer.
source: https:punchng.com
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