Chairman of PETAN and Chief Executive Officer of Geoplez Drillteq Limited Mr. Wole Ogunsanya
SAIPEC 2025: PETAN Demands $1.5bn for contract Awards on Shell's Bonga North Project
....PETAN has advocated for Shell to allocate $1.5bn from Bonga North Project to local firms, pointing to Nigeria's dedication to indigenous participation.
...We aren’t asking for $3 billion dollar. But we are asking for $1.5 billion dollar in contract awards which is about 25% of the entire project value - Ogunsanya
Emmanuel Oduara
The Nigeria oil and gas service providers, under the umbrella of Petroleum Technology Association of Nigeria (PETAN), have demanded that contracts worth $1.5 billion be awarded to local firms from Shell’s $5 billion Bonga North Project as a further proof of the country’s seriousness in promoting local content in the hydrocarbon industry.
Chairman of PETAN and Chief Executive Officer of Geoplex Drillteq Limited, Mr. Wole Ogunsanya, made the demand on Tuesday in Lagos Nigeria, in his welcome address at the opening ceremony of the ongoing Sub-Saharan Africa International Conference and Exhibition (SAIPEC).
Ogunsanya said the $1.5 billion being asked by PETAN represented just 25 per cent of the entire Bonga North project.
The theme of the conference is, “Building Africa’s Future: Advancing Local Content and Sustainable Development in the Oil and Gas Industry.”
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell Plc, had last December announced a final investment decision (FID) on Bonga North, a deep-water project off the coast of Nigeria.
Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.
"The Shell’s $5.5 billion dollar Bonga North project, the PETAN Chairman said, “We aren’t asking for $3 billion dollar. But we are asking for $1.5 billion dollar in contract awards which is about 25% of the entire project value,"
Further more, he clarified that PETAN’s drive towards local content development isn’t in any way discouraging international partnerships for project development, noting that local content should be seen as a shared value between multinational companies and indigenous companies operating in the African oil and gas industry.
“What we are doing in local content is never any way discouraging international partnerships. In Nigeria, we are in collaboration with the international service companies in a way that it is a shared value,” he stated.
"Ogunsanya underscored the need to increase Indigenous companies’ participation in Africa’s oil and gas projects to retain value in-country as well as support the development of local content.
PETAN is looking forward to participating in Shell’s Bonga North project and other key projects in the deepwater, shallow water, and onshore segments to continue to drive local content in Nigeria, he stressed.
He also commended the Nigerian Content Development and Monitoring Board, NDCMB, for their continuous support of local content development.
He acknowledged that PETAN has been able to develop and build capacity through the support of the NCDMB.
He also added that the African continent has what it takes in human capacity coupled with its energy resources to develop the continent and provide the much-needed energy for the people.
Speaking at the SAIPEC conference, the Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCo), Ronald Adams, stated that Nigeria could meet its production targets and implement ambitious development programmes from deep-water oil and gas operations if it continued with policies to encourage investments and boost output in the sector.
“Deep water is a compelling consideration for Nigeria if the country must meet its oil production targets and implement ambitious development programmes,” he noted.
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