Okay News reports that the Petroleum Technology Association of Nigeria (PETAN) has called for stronger public-private supplier collaboration across Africa’s oil and gas industry. The industry body emphasized that Nigeria’s local content framework offers a replicable model for other African nations seeking to maximize benefits from their petroleum resources.
PETAN Chairman, Engr Wole Ogunsanya, made the remarks in his presentation at the 4th Conference and Exhibition on Local Content in the African Oil and Gas Industry, organized by the African Petroleum Producers Organisation in Kintélé, Brazzaville, Congo, last week with the theme “Sustaining Public/Private Suppliers Collaboration in the African Oil and Gas Industry.” APPO is an intergovernmental organization comprising African oil-producing countries.
The PETAN Chairman, who was represented by the Executive Secretary, Engr Kevin Nwanze, noted that Nigeria’s NOGICD Act, implemented by NCDMB has delivered impressive results, raising in-country value retention and local manufacturing from five percent in 2010 to 56 percent in 2024, a model PETAN believes other African jurisdictions should adopt. The Nigerian Oil and Gas Industry Content Development Act was enacted in 2010 to increase local participation in Nigeria’s petroleum sector.
Ogunsanya explained that the complexity of modern oil and gas projects has made collaboration indispensable. According to him, “Collaboration is no longer a ‘nice-to-have’ but a ‘must-have’ for sustainable local content in Africa’s oil and gas industry.”
He noted that the relationship between public and private suppliers must balance collaboration, competition, and regulation, stressing that regulation remains the backbone of any successful partnership. The PETAN boss explained that Nigeria’s regulatory foundation—the Nigerian Oil and Gas Industry Content Development Act of 2010, has been central to the country’s progress in local content development, implemented effectively by the Nigerian Content Development and Monitoring Board.
“The NOGICD Act remains the primary engine driving fairness, transparency, and measurable local content growth in Nigeria’s oil and gas sector,” he said. The NCDMB, headquartered in Yenagoa, Bayelsa State in Nigeria’s oil-rich Niger Delta region, oversees compliance with local content regulations.
He added that Nigeria’s in-country value retention has risen from 5 percent in 2010 to 56 percent in 2024, a development he described as proof of what is achievable under structured collaboration. “Nigeria’s in-country value retention has grown from five percent in 2010 to 56 percent in 2024—clear evidence that structured collaboration works,” he stated.
Ogunsanya argued that collaboration is essential because oil and gas projects require both the financial and technical power of international firms and the community knowledge and contextual expertise of local suppliers. He warned that without collaboration, countries risk project delays, cost overruns, and minimal benefits to host communities.
“Today’s oil and gas projects are too complex for any single party; without collaboration, delays, cost overruns and poor host-country benefits are inevitable,” he said. His remarks reflect challenges faced across Africa where international oil companies often dominate petroleum operations with limited local participation.
He, however, cautioned that several obstacles continue to hinder cross-sector collaboration in Africa, including weak policy environments, difficulty accessing finance, trust deficits, capacity gaps, and inconsistent operational standards. “Weak policies, financing gaps, trust deficits, and capacity limitations remain the biggest obstacles to effective collaboration across Africa,” he noted.
He urged African governments to shift from merely setting local content targets to building truly enabling frameworks. “African governments must move beyond setting targets and focus on creating enabling environments that simplify procurement and expand access to finance,” he stated.
Speaking on the need for transparent procurement systems, open publication of contract awards, and robust oversight structures, Ogunsanya said, “Open procurement, contract publication, and independent oversight are non-negotiable if we want sustainable and trust-driven collaboration.” Transparency in contract awards has remained a major challenge in Africa’s extractive industries.
On technology transfer, he stressed that private sector commitment is crucial for meaningful progress. “Technology transfer can only succeed when private companies make a firm commitment to support local suppliers and the change-management process,” he added.
He cited Nigeria’s successful collaboration models, including the engineering consortium on the Egina FPSO topsides, the EnServ–Schlumberger alliance, and the Kwale Gas Gathering Hub, noting that all were enabled by the NOGICD Act. The Egina project, operated by Total Energies, marked a milestone in Nigerian local content with significant participation by indigenous firms.
“Nigeria’s major project collaborations, from Egina FPSO engineering to the EnServ–Schlumberger alliance, were only possible because the NOGICD Act provided the regulatory backbone,” Nwanze explained. FPSO refers to Floating Production Storage and Offloading vessels used in offshore oil production.
Looking ahead, he said Africa must build long-term capabilities within local suppliers and diversify into emerging energy technologies. “True sustainability comes from building lasting capabilities, not just transferring jobs; Africa must invest in skills, innovation, and sector diversification,” he said.
The PETAN Chairman also pointed to emerging opportunities in renewable energy integration, carbon capture, utilization and storage, and decommissioning of oil and gas assets. “Collaboration will be critical as Africa moves into renewable integration, carbon capture, and decommissioning—skills in these areas will define the next decade,” he added.
Calling on African governments to adopt proven models, he urged policymakers to look closely at Nigeria’s experience. “What has worked in Nigeria can work elsewhere. The NOGICD model is ripe for adaptation by other African jurisdictions seeking real local content growth,” he said.
He equally emphasized that sustainable progress is impossible without strong regulation and empowered implementing agencies. “There can be no sustainable collaboration without strong, workable regulations and an empowered, independent local content implementing body.”
The Petroleum Technology Association of Nigeria represents indigenous oil and gas service companies operating in Nigeria’s petroleum sector. The organization advocates for policies that enhance local participation and capacity development in the industry.
