The initiative, sealed via a Memorandum of Understanding (MoU) signed in Lagos, is engineered to provide robust credit support and seamlessly unlock liquidity for local contractors executing critical projects across SNEPCo’s deepwater operations.
To ensure maximum operational flexibility, ITREALMS gathered that the facility will be accessible in both local currency (Naira) and US dollars.
The multi-billion-dollar intervention fund is backed by a powerful consortium of nine premier financial institutions, reflecting deep banking sector confidence in SNEPCo's operational framework.
The multi-billion-dollar intervention fund is backed by a powerful consortium of nine premier financial institutions, reflecting deep banking sector confidence in SNEPCo's operational framework.
The participating banks include First Bank of Nigeria, Guaranty Trust Bank (GTBank), Zenith Bank, Access Bank, United Bank for Africa (UBA), Stanbic IBTC Bank, Standard Chartered Bank, First City Monument Bank (FCMB), and Fidelity Bank.
Speaking at the MoU signing ceremony, SNEPCo Managing Director Ronald Adams emphasized that the fund is a direct realization of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act’s core mandate, which drives in-country value retention and domestic capacity building.
"The initiative reflects the spirit of the Nigerian Oil and Gas Industry Content Development Act, which is aimed at in-country value retention. Our partner banks offer capital and discipline. SNEPCo brings contracts and domiciliation of payments that de-risk lending. On their part, the contractors provide performance. Each is accountable to others, and the mutual accountability gives the arrangement its strength," Adams stated.
Corroborating this vision, the Vice President of Finance at Shell Nigeria, C. J. Akwaeze, remarked that the deployment of the scheme underscores Shell's unwavering commitment to accelerating the sustainable growth of upstream oil and gas operations across the country.
The indigenous contracting community has widely applauded the initiative. Reacting to the development, Wole Ogunsanya, Chairman of the Petroleum Technology Association of Nigeria (PETAN); who was represented at the event by Dr. Joan Faluyi, lauded the scheme as a game-changing gateway to unlocking contractor financing issues which will also drive efficiency in contract execution.
Speaking at the MoU signing ceremony, SNEPCo Managing Director Ronald Adams emphasized that the fund is a direct realization of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act’s core mandate, which drives in-country value retention and domestic capacity building.
"The initiative reflects the spirit of the Nigerian Oil and Gas Industry Content Development Act, which is aimed at in-country value retention. Our partner banks offer capital and discipline. SNEPCo brings contracts and domiciliation of payments that de-risk lending. On their part, the contractors provide performance. Each is accountable to others, and the mutual accountability gives the arrangement its strength," Adams stated.
Corroborating this vision, the Vice President of Finance at Shell Nigeria, C. J. Akwaeze, remarked that the deployment of the scheme underscores Shell's unwavering commitment to accelerating the sustainable growth of upstream oil and gas operations across the country.
The indigenous contracting community has widely applauded the initiative. Reacting to the development, Wole Ogunsanya, Chairman of the Petroleum Technology Association of Nigeria (PETAN); who was represented at the event by Dr. Joan Faluyi, lauded the scheme as a game-changing gateway to unlocking contractor financing issues which will also drive efficiency in contract execution.
Executive representatives from the participating banking institutions collectively commended SNEPCo for creating a structured, bankable model that empowers local firms, reiterating their long-term institutional support and cooperation for the initiative.
Nigerian engineering and oilfield service companies have consistently demonstrated technical capacity in handling complex offshore campaigns. Notably, during the turnaround maintenance exercise executed earlier this year at SNEPCo’s flagship Bonga Floating Production Storage and Offloading (FPSO) vessel, an impressive 43 out of the 53 companies involved were wholly owned Nigerian enterprises.
Nigerian engineering and oilfield service companies have consistently demonstrated technical capacity in handling complex offshore campaigns. Notably, during the turnaround maintenance exercise executed earlier this year at SNEPCo’s flagship Bonga Floating Production Storage and Offloading (FPSO) vessel, an impressive 43 out of the 53 companies involved were wholly owned Nigerian enterprises.
With the activation of this $3-billion funding pipeline, Nigeria's premier deepwater producer is poised to significantly amplify the technical competence, speed, and delivery value of domestic firms within the global energy supply chain.
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