Shell, Nigerian Banks Launch $3B Financing Facility for Local Contractors

Shell, Nigerian Banks Launch $3B Financing Facility for Local Contractors

Shell and nine Nigerian banks have rolled out a $3 billion Contract Finance Facility aimed at local companies working on Shell projects in Nigeria, Rigzone reports. The facility is backed by Shell Nigeria Exploration and Production Co Ltd (SNEPCo) alongside Access Bank, Fidelity Bank, First Bank, First City Monument Bank, Guaranty Trust Bank, Stanbic IBTC, Standard Chartered Bank, United Bank for Africa and Zenith Bank, and is offered in both naira and dollars.

SNEPCo managing director Ronald Adams said the initiative supports the Nigerian Oil and Gas Industry Content Development Act’s goal of in-country value retention, noting that “SNEPCo brings contracts and domiciliation of payments that de-risk lending.” Petroleum Technology Association of Nigeria chair Wole Ogunsanya called it “a gateway to unlocking contractor financing issues” that should drive execution efficiency. Shell noted that 43 wholly Nigerian companies took part in a recent turnaround maintenance exercise on the Bonga FPSO, out of 53 total companies involved.

Shell has been shifting its Nigerian footprint toward LNG and deepwater work, including the Bonga North tieback project (110,000 bopd by 2030) and the HI field gas development feeding Nigeria LNG’s Train VII expansion at Bonny Island.

What It Means for Subcontractors

• Nigerian firms in maintenance, turnaround, and marine services should note the Bonga FPSO precedent, where 43 of 53 contractors on a turnaround job were wholly local, indicating strong Nigerian-content requirements on similar offshore work.
• Companies tied to the Bonga North tieback (110,000 bopd by 2030) and the HI field gas project supplying Nigeria LNG’s Train VII should use the new naira/dollar credit facility to bridge working capital gaps common in EPC subcontracting.
• Firms in mechanical, E&I, and offshore support trades can approach any of the nine partner banks, Access Bank, Fidelity, First Bank, FCMB, GTBank, Stanbic IBTC, Standard Chartered, UBA, or Zenith, to access financing tied directly to active Shell contracts.