SPDC denies violating Nigerian Content Law at EA fields in Bayelsa

SPDC denies violating Nigerian Content Law at EA fields in Bayelsa

The Shell Petroleum Development Company of Nigeria (SPDC) has denied allegations of violating Nigerian Content laws at the EA fields in Bayelsa. The Ijaw Youth Congress had accused SPDC of excluding indigenous players from its operations at the EA fields, which they claimed breached community content guidelines set by the Nigerian Content Development and Monitoring Board. The youth group threatened to mobilize for a protest to disrupt operations at the oil fields unless the policy was reversed.

In response, SPDC stated that it was a leading player in developing local capacity in the oil and gas sector. The company revealed that it had awarded contracts worth $1.9 billion to Nigerian companies and worked with NCDMB to build the capacity of Nigerian businesses in the oil and gas sector. SPDC emphasized its commitment to supporting the development of businesses in the Niger Delta, working in collaboration with government and community stakeholders.

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SPDC clarified that the case in question was a scheduled review of its logistics contracting process, conducted through an open and transparent bidding process supervised by NNPC Upstream Investments Management Services and NCDMB. The bid winners, including Nigerian companies, were selected based on their commercial and technical competencies, as well as compliance with Nigerian Content regulations.

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In 2022, SPDC Joint Venture, Shell Nigeria Exploration and Production Company, and Shell Nigeria Gas awarded contracts worth $1.9 billion to Nigerian-registered companies. Additionally, they invested $5.6 million in education programs and contributed $34.29 million in direct social investment, mainly in projects related to community, health, education, road safety, and enterprise programs, in partnership with local authorities and contractors.

Furthermore, SPDC JV and SNEPCo have earmarked $56.13 million to be paid in 2023 as a statutory contribution to Host Communities Development Trusts (HCDTs), benefiting Nigerian communities.

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SPDC reiterated its commitment to local capacity development and support for local communities and businesses in the Niger Delta region. The company acknowledged the review of its logistics contracting process and emphasized that the bid winners were selected based on compliance with Nigerian Content regulations.

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