Multinational oil company, Shell Nigeria Exploration and Production (SNEPCO), has signed a Memorandum of Understanding with five banks to provide N790 billion ($5billion) to facilitate the execution of their contracts.
This is to make funds available to Nigerian indigenous contractors in the oil and gas industry, especially those who have relationship with SNEPCO, to finance their contracts.
This is part of the ways to deepen the local content development in the oil and gas industry and also to bolster the economy. Having access to funds has been a major constraint to local companies in executing their contracts.
Contractors inability to execute the projects have often led to foreign firms taking up the jobs.
According to SNEPCO, Shell contractor’s support fund is a partnership for local content development between the ’Shell Companies’ in Nigeria and five reputable financial organisations.
Fidelity Bank plc will provide financier support to the tune $5 billion (N790 billion) to finance loans for contracts made available by Shell through competitive bidding.