By Ndubuisi Micheal Obineme
The Petroleum Technology Association of Nigeria, PETAN, is pushing for local content on Shell’s Bonga North Project and proposed $1.5 billion in contract awards to indigenous companies.
Engr. Wole Ogunsanya, PETAN Chairman, made this known during his opening speech at the ongoing Sub-Saharan Africa International Conference and Exhibition, SAIPEC, with the theme “Building Africa’s Future: Advancing Local Content and Sustainable Development in the Oil & 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.
“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, the PETAN Chairman 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% of the entire project value. That is what we are asking for”.
However, he clarified that PETAN’s drive towards local content development isn’t 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.
He 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.
He 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.
He also commended the Nigerian Content Development and Monitoring Board, NDCMB, for their continuous support of local content development.
He acknowledged that PETAN has been able to develop and build capacity through the support of the NCDMB.
He also added 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.