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Old 31st May 2010, 15:52
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Shell Management
 
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Shell Remains at the Forefront on Social Responsibility in Nigeria

Shell seals N94bn deal with local firm : Businessday

Shell Petroleum Development Company (SPDC)and Caverton Helicopters Limited, an indigenous company, have sealed a N93.73 billion ( $630 million)contract for the provision of helicopters and associated services, both in the offshore and onshore operational areas of the nation’s Oil and Gas industry.
Caverton Helicopters Limited has invested over N10 billion in the helicopter services and plans to establish additional hangars at some strategic locations in the Niger Delta region. The deal, meanwhile, is part of Shell’s strategy to strengthen local capacity in the oil and gas industry, with the overall aim of adding value to the economy.

The contract, which would last for five years and is renewable for another two years, is the biggest aviation contract between an international oil company and an indigenous one. It comes almost 30 years after such services were operated by foreign contractors.

Speaking at the signing ceremony, Shell’s Vice President, Health Safety and infrastructure, Babs Omotowa, said he was proud to note that the company had been in the forefront of local content development in the country since the 90s,well before the concept became widely known.



“In highly technical areas of our industry, a partnership between a Nigerian company and foreign technical partner enables building of capacity and transfer of skills and technology. Our vision is that through this relationship, SPDC and Shell Nigeria Exploration Production Company (SNEPCO) would be a catalyst for a Nigerian company to grow and be able to compete internationally outside Nigeria,” he said.

But he was quick to mention that if the country was to make giant strides on local content, there was the need for a favourable legislature and fiscal environment, which were key pre-requisites for foreign investment inflow. The Shell boss stated that while Nigeria had not signed Foreign Direct Investment (FDI) in the industry over the past few years, Angola had taken FDIs in the last 18 months, adding that the number of rigs in Nigeria had reduced significantly over the past few years.

In his estimation, without projects coming on stream as demand feedback, in-country capacity development would remain a mirage.

Speaking also, Ernest Nwapa, executive secretary, Nigerian Content Monitoring Board, stated that the contract would create jobs and bring more investments into the country, while urging all stakeholders in local content development to create the necessary awareness about the programme.

According to Shell, the contract demonstrates the company’s commitment to the Nigeria Content Act and the aspirations of the Nigerian government for increased participation of local companies in the oil and gas industry.
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