The Nigerian National Petroleum Corporation (NNPC) has said that local content is critical for development in the oil and gas sector and the nation’s economic growth.
Reiterating its alignment with the Nigerian Content Development and Monitoring Board (NCDMB), it added that this adoption will grow indigenous participation in the sector’s value chain, enhance job creation, value creation and development of in-country capacities.
Chief Operating Officer (COO), Upstream for Nigerian National Petroleum Corporation (NNPC), Mr. Roland Ewubare, said this at the ongoing Abu Dhabi International Petroleum Exhibition Conference (ADIPEC) in the United Arab Emirates (UAE).
Ewubare noted that the universe will be unleashed if local content can be the focus.
“Local content is not lip service. If you think about the volume of contracting Engineering, Procurement, and Construction (EPC) in Exploration Production, a significant value is lost to the country.
“Therefore, the more Nigerians we can bring on board, the more in-country competence will be harnessed. This will increase talent development, employment, and revenue generation,” he said.
Regarding growing the nation’s oil reserve, the COO said NNPC is targeting a 67 per cent in-country support projection on other inland basins, since the Egina project.
He added that further exploration is broad-based, not just localised to the Chad basin or the Benue trough.
“As announced, we will migrate towards the Anambra basin and other inland frontier basins.
This reduces the risk of concentration on the Niger Delta and contributes to energy security because every geographical region has its own repository of hydro carbons under explorations and production.
“This sense of ownership helps to build trust and security,” he added.
On the forecast of global oil decline, he expressed confidence that in a universe of 7 billion people, oil and gas will always be relevant.
He added that there is no magic yet for its replacement as a primary source of energy.
Ewubare said: “Yes, there will be some regions that will migrate towards renewables. But don’t forget that growth in terms of absolute numbers and economic expansion comes primarily from Asia and Africa.
“In long term, those areas are not where the use of electric vehicles has gotten close to significant levels. So, I have no worry about the future of oil. It is bright and robust.”
He, however, noted that NNPC’s primary aspiration is to move Nigeria swiftly to full energy security and use energy as a tool to reduce disparity in prosperity.
“The conversation here was about the transition to a greener future as it were. Nigeria is a country of over 200 million people and whatever we do has an impact in Africa and the rest of the world. We also realise that we have an economy to grow. This means that while we are mindful of the larger issues of the environment, we have to address issues that concern our immediate development.