Shell says launches fresh study on oil deposits in Nigerian onshore fields
Lagos (Platts)--17Dec2012/829 am EST/1329 GMT
Shell Monday said it had awarded contracts to four indigenous Nigerian
companies to carry out fresh studies into hydrocarbon deposits in the
company's onshore assets in the eastern division of the Niger Delta, with a
view to determining development plans for the assets.
Shell said the contracts awarded to Laser Engineering and Consultancy
Nig. Ltd., Ankorpointe Nig. Ltd., Integrated Data Services Ltd., a subsidiary
of state oil firm NNPC, and Nubian Nig. Ltd., would evaluate data and build a
picture of the hydrocarbon reserves in Shell's onshore assets in the area.
It did not state the value of the contracts, but added that it was the
first time such contracts would be handed over to indigenous Nigerian
companies, as previous evaluations of oil and gas deposits in its Nigerian
assets were carried out overseas.
"In line with Nigerian Content Development objectives, [Shell] is
working to domesticate these studies, thereby empowering Nigerian companies
to acquire the necessary expertise while also significantly providing jobs
in-country and reducing costs," Shell said.
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Shell is Nigeria's biggest oil producer with output capacity at almost 1
Nigerian President Goodluck Jonathan in April 2010 signed into law the
local content bill, which among other provisions seeks to keep at least 70%
of the annual $20 billion oil spend in the country.
Nigerian National Petroleum Corp. said on November 23 that local content
in the value of oil and gas projects in the country had already risen to 30%,
from 10% two years ago.
The local content implementing body, the Nigerian Content Development
and Monitoring Board Nigeria, said early this year that from April 2013 it
would stop granting waivers to foreign oil firms to import key equipment for
oil and gas projects.
Other multinational oil firms operating in Nigeria include ExxonMobil,
Chevron, Eni, Total and Addax/Sinopec.
Shell early this year signed agreements with five original equipment
manufacturers (OEMs) to set up yards in Nigeria for the manufacturing of oil
and gas equipment locally over the next three years.
--Edited by Jonathan Fox, email@example.com