Local content development at the top of AOW 2023’s agenda as new producing markets seek to benefit from oil & gas investments
To achieve stronger stakeholder collaboration between government and the private sector and develop pragmatic solutions to building domestic capacity in Africa, AOW 2023 is organizing a special session on local content. The panel discussion will address the different ways in which African producing markets and new frontiers can drive social value through the development of domestic enterprises and local jobs creation.
The discussion will involve some of the world’s biggest energy and technology companies operating in Africa, including Shell’s Vice President for Corporate Relations in Europe and sub-Saharan Africa, Rob Sherwin; Baker Hughes’ Managing Director for East Africa, Toks Azeez; Pecan Energy Ghana’s CEO Kadijah Amoah; and PGS.
Over the years, local content development has become a priority for any African producing market in order to maximize local value creation from the development of natural resources and thereby avoid the ‘resource curse’.
Nigeria has notably become one of the world’s most recognized local content success story. Africa’s biggest producing market put in place a clear regulatory framework for local content, gradually increasing requirements for companies to source their products and services locally. Nigerian services companies are now present across the value-chain and have become competitive abroad, having ventured across Africa from Senegal to Uganda.
Along with the current pace of investments on the continent, and as several new markets expect to start producing oil & gas between 2024 and 2026, Nigeria’s example is often referred as one to follow.
However, procuring local products and services is a tricky balance within new frontiers, or in markets where deep-water activity make projects capital and technology-intensive ones. Governments, regulators, and the private sector must find solutions fitted for each national context, and that take into consideration the level of advancement of each country’s value-chain.
While operators have a responsibility to build local economies, national governments must also put in place the regulatory and financing conditions for local enterprises to thrive. AOW 2023’s Local Content panel will focus on such opportunities and try to shed some light on the lessons to be drawn from current local content experiences, while paving the way for new markets to develop their local value-chains successfully.
The discussion will involve some of the world’s biggest energy and technology companies operating in Africa, including Shell’s Vice President for Corporate Relations in Europe and sub-Saharan Africa, Rob Sherwin; Baker Hughes’ Managing Director for East Africa, Toks Azeez; Pecan Energy Ghana’s CEO Kadijah Amoah; and PGS.
Over the years, local content development has become a priority for any African producing market in order to maximize local value creation from the development of natural resources and thereby avoid the ‘resource curse’.
Nigeria has notably become one of the world’s most recognized local content success story. Africa’s biggest producing market put in place a clear regulatory framework for local content, gradually increasing requirements for companies to source their products and services locally. Nigerian services companies are now present across the value-chain and have become competitive abroad, having ventured across Africa from Senegal to Uganda.
Along with the current pace of investments on the continent, and as several new markets expect to start producing oil & gas between 2024 and 2026, Nigeria’s example is often referred as one to follow.
However, procuring local products and services is a tricky balance within new frontiers, or in markets where deep-water activity make projects capital and technology-intensive ones. Governments, regulators, and the private sector must find solutions fitted for each national context, and that take into consideration the level of advancement of each country’s value-chain.
While operators have a responsibility to build local economies, national governments must also put in place the regulatory and financing conditions for local enterprises to thrive. AOW 2023’s Local Content panel will focus on such opportunities and try to shed some light on the lessons to be drawn from current local content experiences, while paving the way for new markets to develop their local value-chains successfully.
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