From Femi Folaranmi,Yenagoa
The Shell Petroleum Development Company of Nigeria Limited (SPDC) has denied allegations of violating the Nigerian Content policy levelled by the national spokesman of the Ijaw Youth Council (IYC), Mr Ebilade Ekerefe.
The Media Relations Manager Shell, Abimbola Essien- Nelson in a swift reaction to claims by the IYC reiterated SPDC’s commitment to the development of businesses in the Niger Delta region.
On the GA Logistics Service Contracts, SPDC stated its review of the logistics contracting process was done in accordance with laid down regulations which involved all the relevant agencies with old and new Nigerian companies emerging as bid winners.
“The Shell Petroleum Development Company of Nigeria Limited Joint Venture (SPDC JV) is committed to the development of businesses in the Niger Delta. Working with government and community stakeholders, we have supported capacity development in several Niger Delta-owned businesses. The case in hand is a scheduled review of our logistics contracting process that has been in place for years. The review, supervised by the NNPC Upstream Investments Management Services (NUIMS), and the Nigerian Content Development & Monitoring Board (NCDMB), was conducted via an open and transparent bidding process which resulted in the entrance of several new contractors. The bid winners comprise some of these new companies, as well as companies previously involved in the contract. All the bid winners, which are Nigerian companies, demonstrated their commercial and technical competence as well as compliance with Nigerian Content regulations.
“Shell’s Nigerian businesses will continue to support the development of local communities and companies. In 2022, the SPDC JV, Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Nigeria Gas (SNG) awarded contracts worth $1.9 billion to Nigerian-registered companies. “Additionally, in 2022, the SPDC JV, SNEPCo and SNG invested $5.6 million in education programmes and contributed $34.29 million in direct social investment. Social investment was mainly in projects related to community, health, education, road safety and enterprise programmes. These projects are often implemented in partnership with local authorities and contractors.
“In addition, $56.13 million has been earmarked to be paid in 2023 by the SPDC JV and SNEPCo for a statutory contribution to Host Communities Development Trusts (HCDTs), which will benefit Nigerian communities. The SPDC JV is transitioning from its existing global memorandum of understanding (GMoU) agreements to the HCDTs in compliance with the Petroleum Industry Act of 2021.”
