Angola Oil & Gas (AOG) 2023 Explores the Strategic Imperative of Local Content
Local content represents one of the primary drivers of economic development in any oil-rich nation. For Angola, the Government has made great strides towards moving from the promotion of local content to the implementation of tangible policies. During the Angola Oil & Gas (AOG) 2023 conference (https://apo-opa.info/3PTENZ0) in Luanda this week, organized by Energy Capital & Power (https://www.EnergyCapitalPower.com), a panel of experts explored the strategic imperative of local content in Angola, with speakers emphasizing the critical value of collaboration and investment in this area.
Insights from panelists sought to advance the discussion on best practices regarding the fulfilment of policies. Preceding the discussions, opening keynote addresses were delivered by Domingos Francisco, Director of Local Content, Ministry of Mineral Resources, Oil and Gas of Angola, Maura Nunes, Coordinator- Local Content, ANPG and Lourdes Caposso, Founder of Local Content Focus.
According to Francisco, “The fundamentals of local content regarding oil and gas sector are very clear: they are about the perseverance of national interests.”
Nunes added that, “Our major responsibilities are to ensure the launch of a platform for the certification of companies so they can acknowledge the characteristics of the market and how to operate.”
With this policy, the government and the ANPG are committed to advancing the participation of local companies while fostering collaboration between Angolan and global companies. However, Berta Rodrigues Issa, Vice President, ASSEA, believes that, “We need more than just a law.” She believes that “The local content law is to enhance, protect and motivate and strengthen,” however, as an industry, “We need tangible goals including short, medium and long-term.”
Tchananti Richard Sahgui, Head of Technical Cooperation, APPO Secretariat, believes that local content needs to be applied with a practical approach. He stated that, “When we take local content and look at why it is important, we have to see the benefit of revenue; benefit of capacity building, manpower and expertise; and the benefit of diversifying our economies.”
Echoing these remarks and representing Aquaterra, the company’s Technical Director Stewart Maxwell stated that, “Within the bounds where we operate, local content requirements exist in most countries. They are not a hazard. We view knowledge transfer as a key part of the project and delivery model. The way you grow a local economic base is pushing the knowledge out as far as possible into the populace. Working with local companies has far more benefit than someone who sets up as local entity, buys from abroad and sells to the value chain.”
Panelists emphasized that by developing the local Angolan economy through local content, the country will be well positioned to advance internationalization, thereby taking Angolan skills and expertise global. Francisco Monteiro, CEO, Brimont Angola acknowledges “Internationalization in the terms of Angola [to be] simple. We are seeing a country that is focused on exporting. We are blessed with resources and we have ambition to be part of the international framework.”
Taking Angolan expertise global can best be achieved through collaboration. Already, there has been notable success in this area. João Filipe, CEO of Cabship, provided insight into the company’s successful collaborative initiatives within the local content landscape. He stated that, “Recently, we signed an MoU with OCTOMAR to establish a diving company. This is collaboration in our view. Furthermore, we have been pioneering an initiative which would allow the International Oil Companies (IOC) and some service companies to share their resources. It is not acceptable when we see IOCs buying the same equipment when another operator has it in stock. If we could come with a platform where, before an IOC can purchase a capital-intensive equipment, there is a database where they can see inventory, we will save time and money.”
Concluding the panel discussion, Caposso stated that, “The point of local content is a point of justice. Local content is inclusion, local content is sharing and local content is negotiating. Local is here; it is understanding the indigenous, native need and how to resolve it. Understanding where you are investing is local content.”
Distributed by APO Group on behalf of Energy Capital & Power.
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.