Deepwater developments: NCDMB mandates operators to prioritize local services
- Links local content to Nigeria First policy
Sopuruchi Onwuka
The federal government has mandated operators in the nation’s deepwater oil and gas play to prioritize use of local capacity in the upcoming field development projects already approved for execution, stressing that Nigeriancontent has moved from aspiration to execution.
“From well equipped, ISO certified fabrication yards in Port Harcourt, Warri, Lagos, to modular refineries in Imo and Delta States; and from pipe mills to marine vessel ownership, Nigerians are not just participating; they are delivering at the highest level,” the Executive Secretary of the Nigerian Content Development and Monitoring Board, Engr Felix Ogbe, declared at the opening ceremony of the ongoing Nigerian Oil and Gas Opportunity Forum (NOGOF) in Yenegoa, Bayelsa State.
He also announced intention of the board to deepen indigenous participation across midstream and downstream operations where, he said, the real opportunity lies as the country move towards rebalancing the economy and increasing oil and gas production.
The conference themed “Driving Investment and Production Growth: Shaping a Sustainable Oil and Gas Industry through Indigenous Capacity Development coincides with the 15th year anniversary of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010.
Traditionally, the conference provides a strategic platform to share forward-looking insights, showcase upcoming projects, and deepen collaboration across the oil and gas value chain. It also amplifies the power of local capacity innovation, and inclusive partnerships in shaping the future of the industry.
In welcoming guests and delegates to the event which is hosted by the NCDMB and organized by Jake Riley Limited, Engr Ogbe also directed operators and sundry players in the industry to ensure that all training opportunities associated with industry projects are fully exploited as specified by regulation.
He told international companies operating in the country that Nigeria is open and ready to do business in a way that shares value fairly, builds local ecosystems, and creates jobs for our youth.
The Oracle Today reports that the major international oil companies operating in the country including Shell, ExxonMObil, Eni, TotalEnergies and Chevron have secured approvals for a lineup of deepwater development projects. Whereas some of the projects have reached investment decisions, others are still being conceptualized to optimize cost and capture gas value.
Approved for ExxonMobil are Erha, Uge, Bosi and Owowo. Shell is already working on Bonga North and Bonga Southwest/Aparo development concepts. Eni is battling with political intrigues that becloud approved Zabazaba field while Chevron is busy with project concepts for expanded developments in operated Agbami and Nsiko fields. TotalEnergies has its hands full with Ubeta and Porowei fields both in conventional and deepwater terrains.
“With opportunities like UBETA, Bonga North, Zabazaba coming onstream, great opportunities are provided for Nigerian companies to further demonstrate their capacity. I encourage the IOCs to make conscious effort to engage local companies in line with the provisions of our laws.” Engr Ogbe reiterated.
He pointed out that the sale of onshore assets by the IOCs to indigenous companies is a bold step and strategic shift towards deeper local participation and value retention. “I use this opportunity to congratulate Renaissance, Seplat, Oando and all our indigenous companies on their milestone achievements. I encourage you not to relent,” he declared.
Engr Ogbe stated that the industry must sustain the momentum, and come together to support the local content stride “in terms of procurement, capacity building, knowledge transfer, job creation and mentorship for upcoming investors.”
He urged the players to give expression to President Tinubu’s Nigeria First mantra and “ensure we use what we have at home first,” adding that no nation achieves energy security or industrial prosperity by outsourcing its core capabilities.
“Our strength must lie in the expertise of our people, the enterprise of our local businesses, and the robustness of our institutions. I cannot emphasize this enough!” he declared.
Engr Ogbe who delivered a welcome speech at the event also called on indigenous contractors and service providers in the industry to muster requisite capacity, be prepared and also to take early positions in service loop in order to participate in projects.
“Let me also emphasize that NOGOF itself is a key part of our strategy—providing stakeholders early visibility of upcoming projects. Visibility begets preparedness. And preparedness begets participation,” he charged local contractors.
Engr Ogbe told indigenous players to step up to vast opportunities with responsibility by providing key mentorship to younger generations. He also charged them to embrace global standards, invest in capacity building, form strategic alliances, and aim to compete beyond the local environment.
In emphasizing that the Nigerian oil and gas industry must evolve beyond commodity export creating economic values and prosperity, Engr Ogbe charged all stakeholders to commit to the shared goal of building a sustainable oil and gas industry anchored on Nigerian capability, innovation, and resilience.
He called on the conference to generate a debate that deliberately produces outcomes that are based on clarity of purpose and unity of vision in line with the 10-year industry roadmap to deepen local participation and increase the participation of Nigerians in the activities of the oil and gas industry.
The , He noted, has since the enactment of the NOGICD Act in 2010 made remarkable progress in building the capacity of Nigerians and of Nigerian companies, attracting critical investments in-country, and enhancing value retention.
With policies, programmes and incentives, Engr Ogbe noted, government has through the Nigerian Content law and regulations increased in-country value retention from 5% in 2010 to 56% in December 2024.
He emphasized the need for Nigeria to tap into the power of local companies, as the global energy landscape evolves, to position as an attractive hydrocarbon investment destination and beacon of sustainable development.
Engr Ogbe pointed out that President Bola Ahmed Tinubu signed three Executive Orders in a bid to revitalize Nigeria’s oil and gas sector and position Nigeria as the preferred investment destination for the petroleum industry.
He pointed out that President Bola Tinubu has in a laudable initiative launched the Nigeria First Policy in a bold, forward-thinking move to reiterate the Nigerian Content drive.
He stated that indigenous participation would now be deliberately driven deeper in the industry to capture the real opportunities across the full valuechain “as we move towards rebalancing our economy and increasing oil and gas production.”
Engr Ogbe charge all operators to “revamp our Human Capital Development (HCD) initiatives,” adding that the need to quickly deliver on more trainings is critical.
“With the increase in activities in the oil and gas industry, I urge that we step-up our trainings. I look forward to your support in ensuring that all trainings under appropriate projects are conducted immediately.
“At NCDMB, we remain unwavering in our commitment to creating the right policies, providing funding mechanisms, and partnerships to support Nigerian businesses.
“We are also fostering innovation through the Nigerian Oil and Gas Technology (NOGTECH) Hackathon and incubating new ideas that will drive digital transformation and sustainability,” he said.