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The Energy Republic February - March Edition 2023

A special publication focused on the Sub-Saharan Africa oil and gas industry with industry updates about the project and investment opportunities in the continent. In this edition, we also featured interesting stories about the energy sector as well as the role of bioenergy resources in the global energy transition agenda, with a spotlight on Germany's biofuel industry, coupled with stakeholders' commentaries and an exclusive interview with Elmar Baumann, Managing Director of the Association of the German Biofuel Industry (VDB).

A special publication focused on the Sub-Saharan Africa oil and gas industry with industry updates about the project and investment opportunities in the continent.

In this edition, we also featured interesting stories about the energy sector as well as the role of bioenergy resources in the global energy transition agenda, with a spotlight on Germany's biofuel industry, coupled with stakeholders' commentaries and an exclusive interview with Elmar Baumann, Managing Director of the Association of the German Biofuel Industry (VDB).

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SAIPEC <strong>2023</strong> STORIES<br />

NCDMB Boss Lists Strategies For Local Content Regional<br />

Collaboration, Signs Agreement with Senegal<br />

Amid global concerns over energy<br />

Nigeria and other African countries the<br />

security and a regional resolve on<br />

partnership opportuni es for sourcing<br />

collabora on to deepen local<br />

content, the Execu ve Secretary,<br />

Nigerian Content Development and<br />

Monitoring Board (NCDMB), Engr. Simbi<br />

Kesiye Wabote, has proposed strategies<br />

that would break down barriers and<br />

promote cross-border collabora on<br />

amongst governments and businesses.<br />

H e m a d e t h e s u g g e s o n s i n a<br />

presenta on he made at the opening of<br />

the 7th SAIPEC Sub-Saharan Africa<br />

Interna onal Petroleum Exhibi on and<br />

Conference in Lagos on Tuesday, hin ng<br />

on the need for peer review mechanisms,<br />

and sharing of experiences and ideas on<br />

industry sustainability and growth.<br />

<strong>The</strong> event provided a pla orm for the<br />

NCDMB to sign a memorandum of<br />

understanding (MoU) with the Technical<br />

Secretary of the Na onal Content<br />

Monitoring Commi ee of Senegal (ST-<br />

CNSCL), the agency that is responsible for<br />

the coordina on and supervision of the<br />

development and implementa on of the<br />

local content strategies in the Senegalese<br />

oil and gas sector.<br />

Under the terms of the MoU, NCDMB will<br />

offer ST-CNSCL strategic advice and<br />

g u i d a n c e i n t h e a r e a s o f l a w s ,<br />

frameworks, knowledge exchange,<br />

procedures for baseline study, data<br />

collec on on capaci es that exist in<br />

Senegal, design of strategic plan for local<br />

content implementa on in Senegal and<br />

other capacity development ini a ves.<br />

Speaking further, Wabote drew the<br />

a en on of sub-Saharan Africa’s Ministers of<br />

Petroleum to the rela vely high crude oil price<br />

levels and upswing poten als experienced<br />

from 2021 to date and the geo-poli cal<br />

dynamics at play, highligh ng the challenge for<br />

African oil and gas service providers “to<br />

partake in the development and maintenance<br />

of oil fields,” which could be best facilitated<br />

through a deliberate ac on plan.<br />

In his paper en tled “Sub-Saharan Africa Local<br />

Content Collabora on Strategies,” the<br />

Execu ve Secretary said the ac on plan under<br />

considera on centres on legal framework,<br />

funding, infrastructure, human capacity<br />

development, and research and development.<br />

He equally highlighted ini a ves and grounds<br />

covered by the Nigerian Government through<br />

the NCDMB in local content development and<br />

how other African oil producers could benefit<br />

from these.<br />

A legal framework, as he pointed out, is an<br />

enabling legal or regulatory framework, a basic<br />

requirement “to drive and develop local<br />

content sustainability.” That would be the<br />

cri cal instrument “to forge a collabora ve<br />

A f r i ca l o cal content st rategy.” T h at<br />

requirement, he observed, has been taken<br />

care of by the African Con nental Free Trade<br />

Agreement (AfCFTA), which he noted “created<br />

the world’s largest free trade area by<br />

integra ng 1.3 billion people across 54 African<br />

countries, with the objec ve of tapping into a<br />

combined Gross Domes c Product (GDP) of<br />

over $3 trillion.”<br />

In the area of infrastructure, he cited Dangote<br />

Integrated Refinery and Petrochemical<br />

Company, with an installed capacity of 650,000<br />

barrels per stream day (bpsd), which he noted<br />

would “afford<br />

petroleum products and fer lizer.” Other cri cal<br />

infrastructure cited were Lekki Free Trade Zone,<br />

SHI-MCI FPSO Fabrica on/Integra on Yard,<br />

Lagos, West African Gas Pipeline Project, the<br />

ongoing AKK gas transmission pipeline, and<br />

NCDMB’s seven Nigerian Oil and Gas Parks<br />

( N O G A P S ) , t w o o f w h i c h a r e d u e fo r<br />

commissioning in <strong>2023</strong>.<br />

<strong>The</strong> occasion also became an opportunity for the<br />

Execu ve Secretary to invite business<br />

organisa ons from the sub-Saharan region<br />

interested in the manufacture of equipment,<br />

components and spares relevant to oil and gas<br />

opera ons to apply for spaces in the industrial<br />

parks at Emeyal II in Bayelsa State, and Odukpani,<br />

Cross River State.<br />

With regards to funding, he expressed<br />

sa sfac on for progress made towards<br />

establishing an Africa <strong>Energy</strong> Bank to address<br />

financing challenges of Africa’s oil and gas<br />

projects in an era of declining investments in<br />

fossil fuels.<br />

For human capacity development, the NCDMB<br />

boss noted its importance “to the successful<br />

implementa on of local content as every<br />

interven on will be powered by humans – either<br />

through intellect, skill set or both.” Research and<br />

Development is similarly pivotal to successful<br />

implementa on of local content.<br />

Engr Simbi was profusely thankful to the<br />

Petroleum Technology Associa on of Nigeria<br />

(PETAN) for “graciously hos ng and du fully<br />

organizing this auspicious event year a er year.”<br />

In his concluding remarks he expressed the hope<br />

that the Associa on would look into “how to<br />

develop and showcase indigenous technology at<br />

SAIPEC.”<br />

51<br />

THE ENERGY REPUBLIC I SPECIAL EDITION

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