Nigeria’s indigenous oil and gas contractors are set to gain easier access to capital after Shell’s local deepwater business partnered with nine commercial lenders to create a $3 billion contract finance facility aimed at accelerating project execution across the country’s offshore energy sector.

The initiative, introduced by Shell Nigeria Exploration and Production Company Limited (SNEPCo), will provide both naira and dollar-denominated financing to local companies executing contracts for the energy producer.

Financing local content growth

Speaking during the signing ceremony in Lagos, SNEPCo Managing Director Ronald Adams said the arrangement supports Nigeria’s local content ambitions by helping domestic contractors overcome one of the industry’s biggest challenges, access to affordable financing.

The structure combines bank capital, secured contract revenues and contractor performance obligations to reduce lending risks while improving project delivery timelines.

According to Adams, the model strengthens value retention within Nigeria and expands the operational capacity of indigenous companies participating in offshore developments.

Nine banks back energy expansion

The participating lenders 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.

The collaboration creates one of the largest dedicated contractor financing pools in Nigeria’s upstream oil industry and is expected to improve liquidity for engineering, procurement and maintenance firms servicing offshore projects.

CJ Akwaeze, Vice President of Finance at Shell Nigeria, described the initiative as another demonstration of the company’s long-term commitment to Nigeria’s energy industry and local enterprise development.

Bonga operations drive indigenous participation

The financing announcement comes as Nigerian firms continue to expand their role in deepwater operations. Earlier this year, 43 wholly Nigerian companies participated in maintenance activities on the Bonga Floating Production Storage and Offloading vessel, representing more than 80 percent of the companies involved in the exercise.

The Chairman of the Petroleum Technology Association of Nigeria, Wole Ogunsanya, represented by Dr. Joan Faluyi, said the facility could unlock longstanding financing constraints that have slowed contract execution across the sector.

Shell deepens offshore investment

SNEPCo, Nigeria’s pioneer deepwater operator and producer of the Bonga field in the Gulf of Guinea, currently supports production of approximately 200,000 barrels of oil and 150 million standard cubic feet of gas daily.

The company reinforced its long-term commitment to Nigeria’s offshore sector after approving the final investment decision for the Bonga North project in late 2024, positioning deepwater assets to remain a major pillar of the country’s future oil production growth.