Wabote: Africa accounts for 12% of annual global oil production

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has said that although Africa produces roughly 12 per cent of global oil volumes, it only consumes less than 4 per cent of the commodity.

He described the situation as potential opportunities for the production, processing and utilisation of oil and gas within the continent for improvement in the standard of living.

Wabote, therefore proffered strategies that would enable the nations to institute sustainable local content practices, achieve in-country value addition, and benefit maximally from the exploitation of their hydrocarbon resources.

Speaking at a two-day Namibia Oil and Gas Conference which held in Windhoek, Namibia, Wabote, according to a statement by the organisation, hinted that given the new discoveries in Africa, there was the need to fully harness the resources.

The NCDMB boss gave an overview of key parameters that are critical to in-country value addition and growth of the sector on a sustainable basis. These, he said are: Regulatory Framework, Gap Analysis, Capacity Building, Funding and Incentives, Research and Development, and Access to Market.

Citing the example of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, he said: “An enabling regulatory framework backed with the appropriate legislation is very fundamental in local content practice…it is better than directives or policies that are subject to speculations or compliance on ‘best endeavour’ basis.”

According to him, once such a statute is in place, it is no longer optional or debatable whether to comply with local content requirements.

“The law must promote and enable investments rather than become a stumbling block to existing or new investors both locally and internationally.

“Provisions should be made in the law to address any lacuna without having to review the entire law such as the provision in the NOGICD Act for utilisation of Ministerial Regulations to address any gaps or opportunities.

“A regulator must be pragmatic in applying the law as the oil and gas industry is very dynamic such that aspirational goals and prevailing realities are not always on the same trajectory,” he added