. Signs agreement with Senegal
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has proposed strategies that would break down barriers and promote cross-border collaboration amongst governments and businesses.
Wabote made the suggestions in a presentation at the opening of the 7th SAIPEC Sub-Saharan Africa International Petroleum Exhibition and Conference, in Lagos, on Tuesday.
Amid global concerns over energy security and a regional resolve on collaboration to deepen local content, he hinted on the need for peer review mechanisms, and sharing of experiences and ideas on industry sustainability and growth.
The event provided a platform for the NCDMB to sign a memorandum of understanding (MoU) with the Technical Secretary, National Content Monitoring Committee of Senegal (ST-CNSCL), responsible for the coordination and supervision of the development and implementation of local content strategies in the Senegalese oil and gas sector.
Under the terms, NCDMB will offer ST-CNSCL strategic advice and guidance in the areas of laws, frameworks, knowledge exchange, procedures for baseline study, data collection on capacities that exist in Senegal, design of strategic plan for local content implementation in Senegal and other capacity development initiatives.
High oil prices
Speaking further, Wabote drew the attention of sub-Saharan Africa’s Ministers of Petroleum to the relatively high crude oil price levels and upswings experienced from 2021 to date and the geo-political dynamics at play.
He highlighted the challenge for African oil and gas service providers “to partake in the development and maintenance of oil fields,” which could be best facilitated through a deliberate action plan.
In his paper entitled: “Sub-Saharan Africa Local Content Collaboration Strategies,” the Executive Secretary said the action plan under consideration centres on legal framework, funding, infrastructure, human capacity development, and research and development (R&D).
He equally highlighted initiatives and grounds covered by the Nigerian Government through the NCDMB in local content development and how other African oil producers could benefit from these.
NCDMB will offer ST-CNSCL strategic advice and guidance in the areas of laws, frameworks, knowledge exchange, procedures for baseline study, data collection on capacities that exist in Senegal, design of strategic plan for local content implementation in Senegal and other capacity development initiatives.
According to him, a legal and regulatory framework is a basic requirement “to drive and develop local content sustainability,” as a critical instrument “to forge a collaborative Africa local content strategy.”
He said that requirement has been taken care of by the African Continental Free Trade Agreement (AfCFTA), which “created the world’s largest free trade area by integrating 1.3 billion people across 54 African countries, with the objective of tapping into a combined Gross Domestic Product (GDP) of over $3 trillion.”
In the area of infrastructure, he cited the Dangote Integrated Refinery and Petrochemical Company, with an installed capacity of 650,000 barrels per stream day (bpsd), which would “afford Nigeria and other African countries the partnership opportunities for sourcing petroleum products and fertilizer.”
Other critical infrastructure cited were the Lekki Free Trade Zone, SHI-MCI FPSO Fabrication/Integration Yard, Lagos, West African Gas Pipeline Project, the ongoing AKK gas transmission pipeline, and NCDMB’s seven Nigerian Oil and Gas Parks (NOGAPS), two of which are due for inauguration this year.
Wabote also used the occasion to invite organisations from the sub-Saharan region interested in the manufacture of equipment, components and spares relevant to oil and gas operations to apply for spaces in the industrial parks at Emeyal II in Bayelsa State, and Odukpani, Cross River State.
On funding, he expressed satisfaction with the progress made towards establishing an Africa Energy Bank, to address financing challenges for oil and gas projects in the continent, in an era of declining investments in fossil fuels.
For human capacity development, Wabote said: “to the successful implementation of local content and every intervention will be powered by humans – either through intellect, skill set or both,” adding that R&D is pivotal to successful implementation of local content.
