The Energy Republic September Edition

SAIPEC SPECIAL REPORT
PETAN Execu ves, Chairman, Mr. Nicolas Nik Odinuwe and Vice Chairman, Mr. Ran Omole paid a
courtesy visit on the Na onal Petroleum Ins tute, INP, Mozambique, as part of PETAN's efforts to
deepen Local Content in Africa
It is projected to lift around 68 million
people out of poverty and make African
countries more competitive.
According to a report, Africa accounts for
just 2% of global trade. And only 17% of
African exports are intra-continental,
compared with 59% for Asia and 68% for
Europe. The potential for transformation
across Africa is therefore significant. The
AfCFTA will create the largest free trade
area in the world measured by the
number of countries participating.
Connecting 1.3 billion people across 55
countries with a combined gross
domestic product (GDP) valued at $3.4
trillion.
In another report, the United Nations
Economic Commission for Africa
(UNECA) predicted that the AfCFTA will
raise intra-African trade by 15 to 25
percent, which is $50 billion to $70
billion, by 2040, compared to an Africa
without the AfCFTA.
However, the implementation of the
Africa Continental Free Trade Area will
allow Africa to increase local content
initiatives, expand economic activity and
drive local capacity for the development
of Africa’s hydrocarbon resources.
Leading the African local content agenda,
PETAN, the largest and leading
indigenous advocacy group representing
the Nigerian oil and gas service
companies with membership across the
entire value chain is forging partnerships
across Africa to stimulate a privatesector
led industry that will catalyse the
growth and development of the
Continent through local content
development.
PETAN is working extensively with the
SAIPEC member countries to increase
Intra-African trade under the African
Continental Free Trade Area, and working
closely with the Global Event Partners, the
event organizer, to develop a stronger
platform for SAIPEC’s subsequent edition.
Recently, PETAN partnered with the
Mozambican Local Content Association
(ACLM), and the Association of Tanzania Oil
and Gas Service Providers (ATOGS) to deepen
and promote local content opportunities for
the benefit of both countries through sharing
of experiences, capabilities, expertise, and
technical engineering solutions. It will also
enhance collaboration on joint venture
bidding and financing for projects whilst
exploring business opportunities available in
the oil and gas sector, and training and
capacity-building programs for indigenous
operators across the oil and gas value chain.
Speaking on this development, PETAN
Chairman, Nicolas Odinuwe commented,
“Private sector must lead in the oil and gas
industry. Politics and investment usually don’t
go together. The government is supposed to
provide an enabling environment. The
industry is wide with a lot of linkages attached
to it and it involves all sectors of the economy.
I believe that if the government will work with
the Association, we will be able to get a lot of
mileage to develop competencies and
capacities.
“With indigenous capacity and competence,
local participation will ensure seamlessly.
Opportunities will trigger capacities,
competencies, and innovation. Partnerships,
research, and development, and access to
markets, finance, and capital are also vital for
local content development. Stakeholders
must form collaborations to catalyse growth
and development.
“The process of developing local content is
beneficial in the long run, as it will address
challenges such as touting, capital flight, and
improve in-country value retention,
domiciliation, and domestication.
“
Indigenous suppliers or
service providers must
develop a culture of
reliability and competence.
As the focal point of the
local content drive and
private sector
representatives, we must
be the pedestal to the
growth and progress of
the business ecosystem
that drives opportunities
for SMEs and linkage
sectors of our economies.
“Local participation doesn’t just happen.
There must be deliberate policy by the
government to promote participation and the
necessary enablers must be put in place for it
to thrive.
“In Nigeria, PETAN partnered with the
government to form our Local Content Law,
and today, we have our Local Content
regulatory body, the Nigerian Content
Development and Monitoring Board,
NCDMB, which has been doing wonderfully
and on who’s Board PETAN has a spot as a
Council Member.
“With PETAN’s experience as the leading
association of professional indigenous
technical oilfield service companies in the
upstream, midstream, and downstream
sectors of the oil and gas industry in Nigeria,
as well as the leading representative advocacy
group, PETAN is ready to offer support and
mentorship to achieve its objectives”.
SAIPEC will return to the Eko Convention
Centre from 20-23 February 2023 for its 7th
edition, as the only oil and gas event held in
partnership with the entire Sub-Saharan
African petroleum industry. The 3-day
flagship international energy conference is
being hosted by PETAN, an association of
leading Nigerian Indigenous Technical Oilfield
service companies in the upstream,
midstream, and downstream sectors of the
Nigerian Oil and gas industry, with the active
support from the Nigerian Content
Development and Monitoring Board
(NCDMB)
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THE ENERGY REPUBLIC I SPECIAL EDITION