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‘Egina, Pushing Nigerian Content Frontier’

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Being a text of a keynote address by the Deputy Managing Director, Deep Water, Total Upstream Companies in Nigeria, Mr. Ahmadu-Kida Musa, at the Nigeria Oil & Gas Conference & Exhibition (NOG) 2018, held at ICC, Abuja, July 2, 2018.
The theme of this
seminar,  “Nigerian Content: The Next Frontier” is relevant for understanding the need to drive the Nigerian oil and gas industry towards sustainable development and growth. It is also an opportunity to discuss important issues the industry may be grappling with as it tries to assume a more local approach in its activities.
I am, therefore, rather delighted to speak about the modest Nigerian Content efforts at Total and what is seen as the next frontier for the industry in terms of in-country activities. You must, however, forgive me, if you find that, in the course of my speech, I keep returning to my current favourite subject, namely, the Egina Project.
Egina Project was sanctioned in 2013, three years after the Nigerian Oil and Gas Industry Content Development Act was signed into law, but It is important to look back at where the sector was to enable us appreciate achievements recorded.
And today’s achievements will be the second part. I will look at the Industry’s post-NOGICD response and what progress was made in advancing Nigerian Content.
The last part will focus on the next frontier for the industry in this area and, with that, we shall wrap up this conversation on a subject I find very interesting.
PRE-NOGICD ACT 2010
Until a few decades ago, the key players in almost all the key sectors of Nigeria’s oil and gas industry were the international oil companies. From exploration to production, refining and trading, the main actors were foreign multinationals.
Oil blocks and assets were owned by foreign oil majors and oil service contracts for engineering, drilling, wireline logging services, supply of safety equipment, construction & fabrication, etc. were largely awarded to foreign owned companies. All these companies were, of course, managed by foreign personnel especially for technical positions. Many project teams were based abroad and only a few Nigerians were lucky enough to be trained abroad or to work abroad, to acquire the relevant technical knowledge and experience necessary to take up key positions in Nigeria.
But by the 1990s, Nigeria joined other emerging economies who sought to take ownership and control of their natural resources for exploitation and transformation into economic development.
To achieve this, some of these emerging economies began to formulate policies and legislation that would compel economic actors to adopt policies that promoted local over foreign.
In 2005, Nigeria took what many analysts consider the most significant step towards Nigerian Content by introducing what was known as the Local Content Policy. As you well know, the main thrust of this Local Content Policy was to promote a framework for which local competencies in the oil and gas sector will be developed through the active involvement of Nigerians using local resources.
The intention of the government, at the time, was to use the local content Policy as a means of discouraging capital flight in the oil and gas industry.
At that time, the Nigerian Government’s Local Content Policy implementation was administered by guidelines issued by the regulatory agencies such as the Department of Petroleum Resources (DPR) and the Nigerian Content Division of the Nigerian National Petroleum Corporation (NNPC).
With this, the industry started to take some steps to embrace Nigerian Content. Some partnered with local contractors on low-risk projects because of concerns about quality and the availability of local capacity. Others embarked on some capacity building efforts, setting up training schools or supporting the upgrade of local yards to manage certain workscopes. Indeed, it has been said that before the Nigerian Oil and Gas Industry Content Development Act came into effect, many industry players approached Nigerian Content as a matter of Corporate Social Responsibility.
Nigerian content was carried out at the discretion of the individual company and often dependent on availability of funding and previous experience with local contractors and partners. Nigerian Content was not really seen as an obligation by many operators. It was often something that was done as an expression of goodwill.
However, there were of course some companies that realised that developing local competencies was a key to sustainability in the future.
It was during this pre-NOGICD period that Total decided to invest in the establishment of a world class petroleum training institution right here in Nigeria; showing its commitment to capacity building and the development of Nigerian Content.
The Institute of Petroleum Studies (IPS), Port Harcourt, was established in a unique tripartite collaboration with the University of Port Harcourt, Nigeria, the French Petroleum Institute, IFP, France and the NNPC/Total E&P Joint Venture.
The institute has consistently produced highly skilled manpower equipped with both the intellectual and technical competencies required in the oil and gas industry. Since its establishment in 2003, IPS has produced over 400 Master of Science graduates and about the same number of Engineering Diploma degree holders; many of whom have filled key positions in various oil and gas companies in Nigeria!
On Total’s projects, Nigerian Content was already a major component before the NOGICD ACT. The Akpo Project, which was sanctioned in 2005 recorded a cumulative Nigerian Content performance of 44%. In 2008, the FID was taken on the Usan Project and by the time the project was completed, the Nigerian Content record had climbed up to 60%.
The point here is that even before Nigerian Content became a matter of law, some in the industry were already on board
POST-NOGICD ACT 2010
On April 22, 2010, the way the business of oil and gas was done in Nigeria changed. That was the day the Nigerian Oil & Gas Industry Content Development Act was signed into law. And the industry, which had already started to embrace the objectives and ideals of Nigerian Content, needed to double its efforts.
The NOGICD Act ushered in an era where in-country value became the focus. With the government now leading the charge with legislation and efficient monitoring through the NCBMB, things began to change more rapidly.
The underlying philosophy and objectives of Nigerian Content today include a focus on:
In-country competency development,  technology development ,   job creation, revenue retention, research and developmentas well as  industrialisation.
The relationship between the Nigerian Content Monitoring & Development Board (NCDMB) and the Industry is that of partners who understand that their goal is the same: local capacity means more robust bottom lines for the Industry and more value for the country as a whole.
In this context, more Nigerian owned engineering firms as well as construction and fabrication yards became more visible as important players in the industry. Many of them became strengthened to participate in FEED and eventually improved capacity fabrication yards began to compete for major development projects.
I must add though that a lot of oil and gas Companies were sceptical of the final destination of this new found impetus by Nigeria on local content.

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Can Cheap Batteries Deliver COP31’s 35% Electrification Goal?

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Electrification will be the major focus of the COP31 United Nations climate conference, to hold in Antalya, Türkiye, from today, November 9 to 20, 2026. The host country will invite the attending nations to sign onto a voluntary pledge to reach 35 percent electrification on a global level by 2035. J
ust a year ago, this target may have seemed overly ambitious, but now, experts say that a number of factors, including volatile oil and gas markets stemming from the war in Iran, paired with enormous advances in clean energy technologies, have put that goal within “striking distance.”
The months-long closure of the Strait of Hormuz has catalyzed the clean energy transition and the rate of electrification around the world. Before the United States and Israel began their military offensive in Iran back in February of this year, one fifth of the world’s oil and gas trade flowed through the Strait of Hormuz. Its abrupt closure therefore sent global oil and gas markets into turmoil and sent energy-importing countries around the world scrambling for alternatives, especially ones that they could produce and control on their home soil. And, just like that, renewable energy became the new face of energy security.
“Wind and solar cannot be embargoed, blockaded, or shut off by a foreign power,” David Frykman, General Partner at Stockholm-based venture capital group Norrsken, wrote in an op-ed for Fortune earlier this year. “Every terawatt-hour of domestic renewable generation is a terawatt-hour that no adversary can weaponize.”
But there is another, quieter force that has made this rapid global pivot toward renewable energies possible – the energy storage boom. Energy storage is critical to ensure grid stability in the face of rapid electrification and the increasing representation of intermittent energy sources like wind and solar power in national energy mixes. Major advances in the sector in recent years have made battery storage more affordable and more scalable than ever before – just in time for the world’s most recent bout of ‘fossilflation.’
“What’s really become a game-changer in the past two years is the rapid deployment of large-scale batteries that can hang onto ever larger amounts of power to be used throughout the day to smooth out demand and avoid overtaxing the grid,” Forbes wrote in a Monday report.
The second quarter of this year saw the United States’ largest-ever energy storage expansion, at 20.2 gigawatt-hours of additional capacity, according to a report by the Solar Energy Industries Association and Benchmark Mineral Intelligence. That puts this year’s total additions at 30.8 GWh – and counting.
“Although President Trump is no fan of renewable energy or batteries, utility-scale energy storage capacity still nearly doubled to 165 GWh from 88 GWh in the first 18 months of his administration,” the Forbes article goes on to detail. “Grid operators, utilities and data center developers are all buying batteries as fast as they can to meet power demand and improve grid reliability. As a result, battery energy storage systems supplied more electricity to the grid in the year’s first eight months than in all of 2025.”
Ironically, despite his best efforts, Donald Trump is overseeing one of the United States’ most significant clean energy booms in the nation’s history as solar and wind have simply become too cheap to fail. And the United States is not alone. Buoyed by a flood of cheap solar panels and battery storage systems coming out of China, even the world’s poorest countries are experiencing clean energy revolutions.
“Some countries are pulling off stunningly fast energy transitions, adding solar so rapidly, it’s become a major source of electricity over the course of years — not decades,” reports CNN.
Pakistan has become the surprise poster child of this trend as residents install rooftop solar and batteries faster than any other market on Earth, as these systems provide electricity more cheaply and reliably than the country’s own beleaguered energy infrastructure. In addition, emerging economies including Brazil, Chile, El Salvador, Morocco, Kenya, and Namibia have all overtaken the United States – the world’s largest economy – in their clean energy transitions.
By Haley Zaremba
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MAN, Ministry Tackle High Electricity Costs, Erratic Supply

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The Manufacturers Association of Nigeria has said it is working with the Federal Ministry of Power to address high electricity tariffs, unreliable grid supply and rising energy costs that are undermining industrial production and competitiveness in the country.
The association said the collaboration would focus on developing sustainable energy solutions for manufacturers, including renewable energy, battery storage, captive power generation and improved electricity distribution.
Speaking during the second edition of the Manufacturers Energy Security and Energy Efficiency Summit in Lagos, the President, MAN, Dr. Ifeanyi Okoye, regretted that high electricity tariffs, unreliable grid supply and heavy dependence on fossil fuels had made industrial production exceptionally difficult.
Okoye said energy expenses consumed nearly half of some factories’ operating budgets, weakening their competitiveness, increasing product prices and threatening jobs.
He said manufacturers had continued to operate their own power infrastructure despite paying for electricity from the national grid.
“When energy expenses claim nearly half of a factory’s operating budget, competitiveness evaporates, retail prices skyrocket, and jobs are placed on the line,” he said.
Okoye said the association was moving beyond advocacy to implement practical solutions through its Industrial Energy Cost Reduction and Energy Support Programme, as key partners in delivering the initiative.
According to him, the programme would promote factory-roof solar installations, battery energy storage systems, captive natural gas generation and smart energy management networks to reduce production costs and protect manufacturers from global fuel price shocks.
He, however, stressed that manufacturers needed affordable, long-term financing to undertake the energy transition.
 “We cannot finance 21st-century industrial transitions with 30-day commercial bank loans at cut-throat interest rates,” Okoye said.
He said the summit would bring financial institutions, climate funds and green investors together to develop long-tenured, low-interest financing instruments, carbon credit opportunities and asset-financing
Also speaking, the Minister of Power, Joseph Tegbe, warned industrial customers against unauthorised electricity connections.
He disclosed that investigations had uncovered about 14 industrial customers along a particular corridor who owed more than N400m in unpaid electricity charges over several years.
Tegbe said such practices deprived the electricity sector of revenue needed to sustain power supply and unfairly burdened consumers who paid their bills.
“Such conduct deprives the sector of revenue that we need to sustain the supply, and unfairly burdens consumers who pay honestly,” Tegbe said.
The minister vowed to recover the outstanding charges and hold those responsible accountable, urging MAN to encourage its members to maintain lawful electricity connections and comply with applicable regulations.
 Tegbe acknowledged that manufacturers continued to struggle with electricity interruptions, poor power quality, vandalism and electricity theft, adding that the government was directing investments towards addressing the underlying problems.
Speaking on behalf of manufacturers, the MAN South-East Chairman, Ada Chukwudozie, said energy had become a question of survival and competitiveness for Nigerian manufacturers.
 She said manufacturers were increasingly financing and managing their own electricity infrastructure while struggling with rising production costs and limited access to capital.
 “We are effectively running a second power system paid for by ourselves, besides the grid we also pay for. And that is why for the Nigerian manufacturer, energy is no longer simply an operational issue. It is a question of survival and competitiveness,” Chukwudozie said.
 She explained that unreliable electricity supply forced manufacturers to make difficult choices between purchasing energy and raw materials, maintaining equipment and paying workers.
The regulator added that manufacturers could strengthen their competitiveness by adopting cleaner energy sources as international markets increasingly imposed environmental and carbon-related requirements on products and supply chains.
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Reps Panel Dismisses Petition Against NIPCO gas Licence

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The House of Representatives has dismissed a petition seeking the cancellation of gas distribution licences awarded to NIPCO Plc, ruling that the petitioners failed to provide credible evidence to substantiate their allegations.

The decision followed a review by the House Sub-Committee on the Petition concerning NIPCO Plc, which rejected the complaint filed by the Nigerian Energy Security Watch Group (NESWG) for lacking substance and evidential support.

The petition had called for an investigation into, and the suspension and cancellation of, gas distribution licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to NIPCO for Lagos, Ogun, Oyo and Osun states, as well as the Lagos and Lekki Free Trade Zones.

Announcing the decision last Thursday, the Chairman of the Sub-Committee, Peter Aniekwe, said the petitioners relied on hearsay and failed to establish any wrongdoing in the licensing process.

“At its sitting today, the Sub-Committee resolved not to proceed with the investigation, and the petition is accordingly dismissed,” Aniekwe said.

The committee, which also includes Dahaltu Shehu, was constituted in October to examine the petition. It was granted an additional 14 days on October 26 to conclude its assignment.

Aniekwe said the issuance and regulation of gas distribution licences were statutory responsibilities of the NMDPRA under the Petroleum Industry Act, while stressing that the National Assembly would continue to exercise oversight over the process.

He disclosed that the regulator had committed to completing and rolling out gas distribution licensing in the fourth quarter of 2026, adding that the committee would monitor the implementation.

“Nigerians deserve a gas market that is open, competitive and safe, and investors deserve rules that are clear and stable,” he said.

The lawmaker reaffirmed the House’s commitment to considering petitions from individuals and organisations with genuine concerns about the petroleum sector, saying “each complaint would be assessed on its merits”.

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