Operators in the oil and gas industry said local content must go beyond regulatory compliance, highlighting value retention, skills development and collaboration as essential drivers of sustainable growth.

Speaking during a panel on ‘Empowering Local Services, African Entrepreneurs and Multinational Partnerships’ at the 9th Nigeria International Energy Summit (NIES) 2026, the operators underlined a growing consensus that local content should be approached as a strategy for sustainable growth, not simply a compliance requirement.

The focus, they said, must remain on retaining value within the country, building technical skills and fostering collaboration between operators and contractors.

On the approach to local content, Deputy General Manager, Nigeria Content at TotalEnergies E&P, Cyprian Ojum, said the company viewed local content as a core operational philosophy, rather than a mere regulatory obligation under the Petroleum Industry Act (PIA) 2010.

“At TotalEnergies, we are not looking at a combined set of goals or just regulations. We look at value, the content retained in Nigeria at the end of each project,” he said.

He explained that local content compliance is assessed against minimum and maximum thresholds set by the Act for activities such as construction, procurement, installation, transportation, drilling, and other oilfield services.

The company prioritises working with local contractors to meet these benchmarks, only after which it considers leveraging international expertise to support local companies in remaining competitive, Ojum said.

“This approach ensures Nigerian contractors can meet global standards while maintaining cost efficiency,” he said.

Ojum highlighted the Egina offshore oil project as a success story of local content. The project, he said, has trained about 200 Nigerians in critical technical skills, who are now contributing across the oil and gas value chain.

It has also supported nearly 10 per cent local production, demonstrating that Nigerian expertise can be successfully integrated into complex offshore operations, he said.

Echoing the value of local capacity, Vice President at Heirs Energies, Debo Adebajo, said local content is fundamentally a philosophy of trust in Nigerian talent.

“We believe our people can create value, with support where necessary, just like any international company,” he said.

Adebajo highlighted the importance of intellectual capacity and technical competence, noting that the most effective contractors contribute solutions and expertise rather than focusing solely on financial gain.

He also emphasised collaboration, saying, “We discuss ideas openly with our contractors, turn technical discussions into problem-solving sessions, and engage partners to ensure the right capacities are brought to the project. This is the kind of collaboration we want from contractors who are solution-oriented and committed to delivering results.”

Chief Technical Officer of Asharami Energy, Leste Aihevba, said collaboration and competence remain central as more indigenous companies assume operator roles in Nigeria’s oil and gas sector.

“The industry is changing, and collaboration across the value chain is increasingly important,” he said.

He noted that Asharami Energy has created structures that allow local companies to deliver complex projects, while also fostering exposure to international best practices.

Aihevba added that while significant progress has been made in building in-house technical teams, there remain niche technologies where international collaboration is necessary. Such partnerships, he said, are critical for bridging technical gaps and transferring skills, enabling local companies to gradually develop the expertise needed for full operational independence.

He further stressed that government support and regulatory stability are essential to sustaining local capacity development, noting that recent interventions have helped ease long-standing operational bottlenecks.