By Stanley Onyeka, Lagos with agency report
The Petroleum Technology Association of Nigeria (PETAN), yesterday, sought at least 25% of the contract value for its members from Shell’s $5.5 billion Bonga North deep-water project.
This translates to $1.5 billion in contract awards to indigenous companies, as a way to further boost local content development in the sector.
PETAN Chairman, Wole Ogunsanya, made the call during his keynote address at the Sub-Saharan Africa International Conference and Exhibition (SAIPEC), which kicked off in Lagos, yesterday.
The conference is themed: “Building Africa’s Future: Advancing Local Content and Sustainable Development in the Oil & Gas Industry.”
Mr. Ogunsanya expressed optimism over several Final Investment Decisions (FIDs) recently signed in Nigeria, especially Shell’s Bonga North project.
Reinforcing indigenous companies’ capacity to execute industry projects, he said: “Our members have over three decades of experience in the oil and gas industry as technical and service providers.
“We possess the expertise to manage major projects across the oil and gas value chain, including deepwater ventures in Nigeria and other African nations.
“We are not asking for $3 billion but are requesting $1.5 billion in contract awards, about 25% of Shell’s Bonga North project.”
PETAN represents 60-70% of Nigeria’s local content capacity, with over 100 member companies, each led by a CEO and executive directors.
Mr. Ogunsanya also highlighted that PETAN’s members are active in regions like India, the Middle East, and Africa, showcasing their broad capabilities.
He stressed that PETAN’s focus on local content development aims to encourage cooperation between multinational companies and local firms, not discourage international partnerships.
“We collaborate with international service companies, creating shared value that benefits all parties,” he affirmed.
He also emphasised the importance of increasing indigenous companies’ involvement in Africa’s oil and gas projects, ensuring value stays within the continent.
Looking ahead, he expressed PETAN’s eagerness to contribute to the Bonga North project and other initiatives across Nigeria’s deepwater, shallow water, and onshore sectors.
To this end, he commended the Nigerian Content Development and Monitoring Board (NCDMB) for its continuous support in building local capacity.
“We have strengthened our capacity with the invaluable support of the NCDMB,” he noted, adding that Africa can leverage its human and energy resources for development.
“Through PETAN’s efforts, Nigeria and Africa’s oil and gas industry are poised for growth, ensuring more opportunities remain in local hands,” he said.
We possess the expertise to manage major projects across the oil and gas value chain, including deepwater ventures in Nigeria and other African nations.
SAIPEC 2025
Meanwhile, Mr. Ogunsanya SAIPEC 2025 will offer opportunities for industry experts to engage in thought-provoking discussions, share knowledge, and explore innovative solutions to the challenges facing the industry.
According to him, PETAN, as a think-tank organization, has been keenly following industry trends, and have carefully selected the theme and sub-themes of this year’s SAIPEC.
He said: “To help shape an even more positive energy outlook for Africa in tandem with our vision to deepen collaborations with governments and critical stakeholders in navigating the next phases of the oil and gas sector that holds the key to the growth and development of our national and regional economies.”
“This is why we shall be hearing from critical industry stakeholders, amongst which is the African Petroleum Producers Organization, APPO, to give insights on what is seen to be the most pressing issue facing the continent’s energy sector, – financing and other challenges.
“We are excited that international investors, development banks and private equity firms have shown a steadfast interest in the African energy market.
The launch of the Africa Energy Bank by the African Export-Import Bank and APPO. was a key milestone that marked the creation of a first-of-its-kind institution designed to fund and facilitate energy initiatives across the continent with head office in Nigeria. I thank the Honorable Ministers of State and the Government for this laudable milestone.”
