Oil & Gas
THE Petroleum Technology Association of Nigeria (PETAN) is advocating for greater local content participation in Shell’s $5.5 billion Bonga North deep water project.
It proposes $1.5 billion in contract awards to indigenous companies.
Mr Wole Ogunsanya, PETAN Chairman, made the call on Tuesday during his keynote address at the Sub-Saharan Africa International Conference and Exhibition (SAIPEC) in Lagos.
The ongoing conference is themed ‘Building Africa’s Future: Advancing Local Content and Sustainable Development in the Oil & Gas Industry’.
Ogunsanya expressed optimism about several Final Investment Decisions (FID) recently signed in Nigeria, especially Shell’s Bonga North project, and emphasised the vital role of indigenous companies.
“Our members have over three decades of experience in the oil and gas industry as technical and service providers,” Ogunsanya said.
He added: “We possess the expertise to manage major projects across the oil and gas value chain, including deepwater ventures in Nigeria and other African nations.”
PETAN represents 60-70 per cent of Nigeria’s local content capacity, with over 100 member companies, each led by a CEO and executive directors.
Ogunsanya also highlighted that PETAN’s members are active in regions like India, the Middle East, and Africa, showcasing their broad capabilities.
“We are not asking for $3 billion but are requesting $1.5 billion in contract awards, about 25% of Shell’s Bonga North project,” Ogunsanya clarified.
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.
Ogunsanya 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.
Ogunsanya also 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. (NAN)
A.I
Feb. 11, 2025
Tags: PETAN Wole Ogunsanya
