By Adedapo Adesanya
Nigeria and Ghana have signed a Memorandum of Understanding, (MoU) towards developing and deepening local content regulations in Ghana’s upstream petroleum sector.
The signing ceremony took place on the sidelines of the 2024 Annual Local Content Conference and Exhibition held at Takoradi, Ghana between the Nigerian Content Development and Monitoring Board (NCDMB) and the Petroleum Commission Ghana (PCG).
The deal is valid for three years and is centred on the desire to build synergies through information sharing and the transfer of skills of mutual interest and benefits.
Under the MoU, NCDMB will offer PCG strategic advice and guidance in the areas of laws, frameworks, knowledge exchange, procedures for baseline study, data collection on capacities that exist in Ghana, design of strategic plans for local content implementation in Ghana and other capacity development initiatives.
The MoU would also foster collaboration, provide opportunities for global experience, and facilitate the advancement of knowledge, leading to local content development in the upstream petroleum sector.
In addition, NCDMB will offer technical support in the development of the framework for the formulation of regulations and policies for PCG Local Content laws.
NCDMB was established in 2010 by the Nigerian Oil and Gas Industry Content Development, NOGICD, Act, and is mandated to monitor, guide, develop, and promote local content practice in the Nigerian oil and gas sector and linkage sectors.
On the other hand, the PCG was established by the Petroleum Commission Act, 2011 (Act 821) to regulate and manage the utilisation of petroleum resources and coordinate the policies in the upstream petroleum sector under the laws of the Republic of Ghana.
NCDMB had signed a similar agreement with the Technical Secretary of the National Content Monitoring Committee of Senegal (ST-CNSCL) in February 2022. The ST-CNSCL is the agency responsible for the coordination and supervision of the development and implementation of local content strategies in the Senegalese oil and gas sector.
Speaking earlier at the conference in Ghana, the Executive Secretary of NCDMB, Mr Felix Omatsola Ogbe, urged African oil and gas service companies to collaborate among themselves and leverage their unique capabilities.
“This approach would grow African local content sustainably and help meet the aspirations of the African Continental Free Trade Area (AfCFTA),” he noted.
He expressed delight at the collaborative spirit displayed by African countries, noting that “this event is a testament to our unwavering commitment to fostering strategic partnerships and driving sustainable growth within our sector.”
Commenting on the theme of the conference, Attracting E&P Investments to Boost Local Content: New Pathways, the Executive Secretary underscored the necessity for innovative approaches and collaborative efforts to unlock Africa’s hydrocarbon resources, estimated at over 125 billion barrels, accounting for about 10 per cent of global reserves.
He reiterated the role of NCDMB as a business enabler, supporting the development of an efficient indigenous supply chain and delivering quality service competitively in the oil and gas industry.
Reflecting on NCDMB’s achievements, Engr. Ogbe noted significant progress in local content development, with an increase from less than 5 per cent in 2010 to 54 per cent in 2023, attributing the growth to the robust NOGICD Act, strategic implementation by the Board and collaboration by industry stakeholders.
He further highlighted the importance of economies of scale in attracting new investments and optimizing capacity utilisation in the exploration and production value chain.
He also celebrated the establishment of the African Energy Bank by the African Petroleum Producers Organization (APPO) and the African Export-Import Bank (Afreximbank).
The bank is expected to fund major oil and gas projects across the continent, mitigating the reluctance of Western financial institutions to support new investments in the sector.