PETAN Positioned to Lead Africa in Local Content, Intra-African Trade
By Ndubuisi Micheal Obineme
Petroleum Technology Association of Nigeria (PETAN) provided an update on how it has positioned itself to lead Africa in local content development and explore opportunities under the African Continental Free Trade Area Agreement (AFCFTA).
In an exclusive interview with The Energy Republic, PETAN Chairman, Nicolas Odinuwe, stated that the Association is ready to collaborate and invest in Africa to meet the energy needs of the continent.
PETAN Chairman pointed out that the implementation of the AfCFTA is positioning the African Continent to increase local content initiatives by expanding economic activities across Africa and enhancing cross-continental trade in a single market for people, goods, and services.
He said, “African market presents huge opportunities in a range of sectors, including the oil and gas and there are still a number of underutilized assets in West Africa.
“It’s a good time to invest in Africa, especially in our transition fuel, the natural gas, which actually reduces emissions and we are exploring strategic collaboration with local and international companies to help us achieve more desired results.
“An opportunity is presented for our abundant gas resources to replace fossil fuel and the vacated space by International Oil Companies (IOCs) divestment programs allows for migration of assets to competent independent indigenous companies”
He called on indigenous service providers and industry stakeholders to establish partnerships in developing these resources while gaining reasonable profit, technical expertise, management skills for service companies to expand their businesses.
According to him, PETAN’s investments interest is in technical training and human capacity development.
“We are exploring strategic collaboration with local and international companies to help us achieve more desired results.
“We are made up of dedicated and patriotic entrepreneurs, who reside in a difficult business terrain though with the most potential, in the sub-Sahara African region”
Highlighting the challenges hindering the growth opportunities in Africa’s oil and gas industry, Odinuwe explained that the issues of insecurity, political instability, aging, insufficient infrastructure and know-how, declining international investment leading to a small number of new projects, and lack of final investment decision (FID), declining production, regulatory risks stands as a major challenge and contributes to lack of investor’s confidence in the region.
However, he noted that the African Continental Free Trade Area Agreement (AfCFTA) will boost Africa’s industrialization and productivity in manufacturing, capacity building.
He added, “Nigeria is leading the African Local Content Agenda from the resounding success of its Nigerian Content through the Nigerian Oil and Gas Industry Content Development Act (2010), a comprehensive policy implemented by the Nigerian Content Development and Monitoring Board (NCDMB) to promote local participation, technology transfer and sustainable economic growth in the country.
“NOGICD Act has ensured that indigenous companies are better opportune for greater involvement in the oil and gas industry.
“Other African countries are copying this model by understudying the Nigerian success story to ensure that Africa’s natural resources serve Africans and African economies.
“We are glad about some of the new discoveries made over the past decade in Africa and even more proud that Nigeria is leading in key oil and natural gas projects in the sub-region despite the challenges. There are similar scenarios in Mozambique, Equatorial Guinea, Mauritania, Tanzania.
“We are aware of the challenge of infrastructure gaps. Our governments with help from the private sector are closing the gaps through massive investments and development of infrastructure”.
PETAN Chairman said in view of the challenges, innovative inventions and investments will help translate Africa’s abundant resources into shared wealth and sustain its economic development.
“Improved financial and ICT services will increase digitization, productivity, and ease of transacting business across wider markets, encouraging the integration of supply chains, business sustainability and entrepreneurship”.
In his words, PETAN’s Publicity Secretary, Dr. Lucky Akhiwu said, “Through our sustained conversations around industry developments at our upcoming annual conference (SAIPEC), we hope to encourage robust engagements with governments, form strategic alliances (public, private and foreign) and increase the numbers of innovative inventors through human capacity development; training and skills development to boost employment and export revenues.”
