By Helen Udofa
LAGOS
The Petroleum Technology Association of Nigeria, PETAN, is pushing for local content on Shell’s Bonga North Project, while also proposing a $1.5 billion in contract awards to indigenous companies.
PETAN Chairman, Engr. Wole Ogunsanya, stated this in his opening speech at the just concluded 9th edition of the Sub-Saharan Africa International Conference and Exhibition, SAIPEC, with the theme “Building Africa’s Future: Advancing Local Content and Sustainable Development in the Oil and Gas Industry” in Lagos.
Ogunsaya said PETAN is excited about the several Final Investment Decisions (FID) that have successfully been signed in Nigeria including Shell’s $5.5 billion Bonga North deepwater project, saying, “As technical and service providers with three decades of operational excellence in the oil and gas industry, our member companies have the required capacity to develop major projects across the oil and gas value chain including in deepwater Offshore Nigeria and other African countries.
“PETAN represents 60 – 70 percent of local content capacity in Nigeria.At PETAN, we have over 100 companies. Each of our members is represented by a CEO and executive directors.
“Our members are working in India, the Middle East, and across other African countries. The capacity is there and it’s now left for us to harness it,” he stated.
Speaking about Shell’s $5.5 billion dollar Bonga North project, Ogunsanya said, “We aren’t asking for $3 billion dollar. But we are asking for $1.5 billion dollar in contract awards which is about 25 per cent of the entire project value. That is what we are asking for”.
The PETAN chairman, however, clarified that PETAN’s drive towards local content development is not in any way discouraging international partnerships for project development, noting that local content should be seen as a shared value between multinational companies and indigenous companies operating in the African oil and gas industry.
“What we are doing in local content isn’t in any way discouraging international partnerships. In Nigeria, we are in collaboration with the international service companies in a way that it is a shared value,” he reiterated and underscored the need to increase Indigenous companies’ participation in Africa’s oil and gas projects to retain value in-country as well as support the development of local content.
Ogunsanya said PETAN is looking forward to participating in Shell’s Bonga North project and other key projects in the deepwater, shallow water, and onshore segments to continue to drive local content in Nigeria.
The PETAN chairman commended the Nigerian Content Development and Monitoring Board, NDCMB, for its continuous support of local content development, acknowledging that PETAN has been able to develop and build capacity through the support of the NCDMB.
He maintained that the African continent has what it takes in human capacity coupled with its energy resources to develop the continent and provide the much-needed energy for the people.
Presenting the keynote address on “Sub-Saharan Africa Local Content Collaboration Strategy”, the executive secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe FNSE, commended the organizers for bringing together key stakeholders to discuss and shape the future of the petroleum industry in Sub-Saharan Africa.
Ogbe noted that as the global oil and gas industry continues to evolve, it was imperative for the Sub-Saharan region adopt a unified approach in strengthening local content development, advancing industrialisation, and fostering sustainable economic growth throughout the continent.
“Over the years, Sub-Saharan African nations have made notable strides in local content development, with countries like Nigeria, Angola, Ghana, and Uganda implementing policies to boost indigenous participation in the oil and gas sector. However, fragmented implementation continues to hinder collective progress.
“A collaborative strategy among Sub-Saharan African nations would foster the sharing of best practices and enhance cross-border partnerships that can drive the competitiveness of our indigenous players.
He recommended that key pillars to Africa’s collaboration strategy must include Harmonisation of Local Content Policies, Human Capital Development, Investment in Infrastructure, Provision of funding for Local Companies and Technology Transfer.
Ogbe noted that the NCDMB’s collaboration with industry practitioners and various stakeholder groups has led the Board to a remarkable performance in the implementation of its 10-year strategic roadmap, saying,“We are currently at 56 per cent Nigerian Content with all indicators pointing to our capacity to achieve the target 70 per cent Nigerian Content by the year 2027.
“Locally, the Board has developed an initiative called Back to the Creek. This is a strategic project aimed at revitalising educational infrastructure in Nigeria’s oil and gas regions, especially those impacted by oil and gas activities. It focuses on equipping youths in host communities with the skills needed to meet industry demands, directly supporting the local content drive. In the process, we will be launching vocational training, and strengthening community-focused initiatives. This initiative aligns closely with the mandate of His Excellency, President Bola Ahmed Tinubu, GCFR, to create an enabling environment for businesses to thrive.
He said President Tinubu had demonstrated bold leadership and commitment to transforming Nigeria’s Investment climate with the signing of an Executive Order towards positioning Nigeria as Africa’s top destination for petroleum sector investments, and had, in a decisive move, directed the reduction of the contracting cycle for oil and gas projects from 36 months to a maximum of six months, noting that the landmark directive has significantly accelerated project approvals, eliminated bureaucratic bottlenecks, and strengthened investor confidence, resulting in the swift execution of oil and gas projects. Under his leadership, this initiative has already yielded remarkable success, with four Final Investment Decisions (FID) achieved in the past year alone.
He called on all stakeholders to play a part in the collaboration drive, saying governments must foster an enabling environment by creating policies that support regional integration and local content growth, while regulators must create mechanisms for mutual recognition of standards and certifications; andindustry players must embrace strategic partnerships, knowledge sharing, and joint ventures to drive local content development., while financial institutions should provide tailored financial solutions that enable indigenous participation in large-scale projects and, the academia and research institutions must collaborate on industry-driven research, innovation, and skills development initiatives.
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