Nigerian firm wins Shell $50 m contract

Shell Petroleum Development Company yesterday said it had awarded a N7.8 billion contract to S.C.C Limited, a Nigerian firm for the manufacture of line pipes, in an effort to boost local production capacity of a key pipeline making material. Shell said in a statement that it had signed the contract with S.C.C in August and has worked with the firm to enhance its production process and capabilities such that it can now manufacture line pipes of varying diameters.
“The contract means line pipes are now available within Nigeria, saving money and time, and developing the right expertise and creating jobs at the same time,” Igo Weli, Shell’s general manager said, adding that it was studying the findings of a feasibility study it commissioned this year on the establishment of a second mill in Nigeria which will manufacture other types of line pipes. Nigeria has been trying to promote the use of local content particularly in its oil and gas industry in order to develop local capabilities and create employment. Shell said it uses local contractors and hires workers from the communities in which it operates in compliance with Nigeria’s local content law.