PETAN Reiterates Support for African Local Content Agenda
PETAN Chairman, Mr. Nicolas Odinuwe has once again, reiterated the commitment of PETAN to the drive for African Local Content, saying that the collaboration between PETAN and the Mozambican Local Content Association ACLM, is unique because both bodies were borne out of necessity to raise the stakes within the African energy, oil and gas industry.
He made the assertion at the ongoing Mozambique Energy and Industry Summit taking place in Maputo.
Mr. Odinuwe said that although local content is an evolving process which should have the full support of the government, it should be led by the private sector, which should be ready to form strategic collaborations to provide services along the value chain, map opportunities to identify key areas of development through the project development, execution, operation and maintenance phases of the energy, oil and gas industry, and invest in human capacity building programs to catalyze growth and development.
"With indigenous capacity and competence, local participation will ensue seamlessly. Opportunities will trigger capacities, competences and innovation. Partnerships, research and development, access to markets, finance and capital are also vital for local content development. Hence, stakeholders must form collaborations to catalyze growth and development.
"As a support group, the ACLM, like PETAN, has the potential power and influence to harness the gains of the industry if properly supported and guided. Therefore, the ACLM must target engagements with government, operators, regulators and IOCs and serve as an effective midwife group for the benefit of local service players as well as the citizens".
He assured that 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.
He however warned against non-performance or delays, which has major cost implications on operations and the overall economy. "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 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 whose Board PETAN has a spot as a Council Member.
He assured that 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 the ACLM to achieve its objectives.