PETAN: Current Mega Projects in Oil Industry Raise Doubts about Meeting Local Content Targets 

Peter Uzoho

Chairman of the Petroleum Technology Association of Nigeria (PETAN), Mr. Nicolas Odinuwe has expressed doubts about the ability of ongoing mega projects in the Nigerian oil and gas industry to convince local oil service companies that the local content targets of the projects would be met.

Odinuwe stated that PETAN receive complaints regularly about local content targets not being met by most of the players in the industry, adding that the operators and tier-1 contractors have not helped matters and that more needed to be done to achieve their local content targets as set.

The PETAN chairman made the assertions in his keynote presentation during the local content session at the just concluded sixth Nigerian International Energy Summit (NIES) in Abuja, with the theme: “Global Perspectives for a Sustainable Energy Future”.

Speaking on the topic: “Local Content Investment and Sustainable Energy Future,” urged all stakeholders including contractors and the local service companies to gear towards achieving those targets set in the Nigerian local content Act. 

He said the tendency of industry players to cut corners in defiance of legal provisions, because of what the shareholders would get, negates the essence of achieving an energy future and making headway.

Odinuwe stated: “So with the environment at the forefront of what we do, we should continue to gain traction in the sector, and current mega projects in the oil and gas space are yet to convince the local service companies that local content targets set can be met. 

“All of us are in this space right now and as PETAN chairman, I can tell you that we receive complaints every now and then about local content targets not being met by most of the players in the industry.

“The operators and tier-1 contractors have not helped and more needs to be done to achieve their local content targets as set. I know that each time there is a local content conferences, points are made about achieving those targets as set. Let us hope that all of us including the contractors and the local service companies gear towards achieving those targets set in the local content Act.