Nigerian oil producers are in talks with Shell to secure up to 25% of service contracts.
The discussions focus on Shell’s Bonga North deepwater project, a $5.5 billion investment expected to sustain Nigeria’s oil and gas production.
The project will be integrated into Shell’s Floating Production Storage and Offloading (FPSO) facility, where the company holds a 55% stake.
Wole Ogunsanya, chairman of the Petroleum Technology Association of Nigeria (PETAN), confirmed that local firms are pushing for a significant share.
“We have built strong capabilities, and Nigerian firms are already delivering projects in India, the Middle East, and Africa,” Ogunsanya said.
He spoke at the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) 2025 in Lagos, highlighting Nigeria’s expertise.
Shell declined to comment on the proposal, leaving the industry waiting for a response on the local participation request.
Nigeria’s Local Content Development Act of 2010 mandates oil firms to demonstrate economic benefits for the country through jobs and local contracts.
Since the law’s enactment, local participation in oil and gas projects has risen to 56%, with a government goal of 70% by 2027.
Shell estimates that Bonga North holds over 300 million barrels of recoverable oil equivalent, a resource vital for future output.
At peak production, the project is expected to deliver 110,000 barrels per day, with first oil anticipated before 2030.