Shell awards $47m contract to Nigerian firm

31 October 2011, Sweetcrude, Lagos – The Shell Petroleum Development Company of Nigeria (SPDC) has awarded a contract for line pipes worth over N7.8 billion ($47 million) to SCC Nigeria Limited, a Shell spokesman said.

Tony Okonedo, Shell’s Corporate Media Relations Manager, said in a statement on Monday (today) that the contract represents one of the biggest efforts by an international oil company to encourage in-country manufacture of the key pipeline-making material in Nigeria.

“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, SPDC’s General Manager, Nigerian Content Development, said.

SPDC is also studying the findings of a feasibility study on establishing a second mill in Nigeria to manufacture other types of line pipes, the company said.

“We commissioned the study earlier this year and are currently working with the Nigerian Content Development Monitoring Board on how the mill will be set up. Two line pipe mills in Nigeria will be an exciting development for the oil and gas industry and for the country as a whole,” Weli said.

Last year, Shell-run companies in the country awarded contracts worth nearly $947 million to local companies.

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