DR Congo: Nigeria Local Content Study Tour Eyes NCDMB Model

• A DR Congo delegation, led by Minister Simplice Stev Onanga, is undertaking a study tour in Nigeria to learn from the NCDMB's local content framework.
• Nigeria has achieved 61% local content capacity since the 2007 Nigerian Oil and Gas Industry Content Development Act, with a 10-year roadmap targeting 70% by 2027.
• The NCDMB's initiatives are funded by a 1% levy on upstream oil and gas contracts, enabling indigenous firms to acquire divested assets.
• The tour, continuing until Friday, includes visits to key Nigerian oil and gas facilities and aims to provide practical insights for the DRC's own local content development.

A high-level delegation from the Democratic Republic of Congo recently commenced a significant study tour in Nigeria, signaling a strong intent to bolster its own oil and gas sector through robust local content regulations.

A high-level delegation from the Democratic Republic of Congo recently commenced a significant study tour in Nigeria, signaling a strong intent to bolster its own oil and gas sector through robust local content regulations. Led by Minister of Hydrocarbons Simplice Stev Onanga, the DRC representatives arrived in Abuja on Monday to meticulously examine the established framework of the Nigerian Content Development and Monitoring Board (NCDMB), a model widely recognized for its success in fostering in-country value within the petroleum industry.

This diplomatic exchange underscores a broader commitment to intra-African collaboration, as highlighted by Nigeria's Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who welcomed the visitors. Minister Lokpobiri emphasized Nigeria's dedication to sharing expertise with fellow African nations, particularly under the auspices of the African Petroleum Producers Organisation (APPO), reinforcing the idea that regional solutions are key to addressing the continent's energy challenges. This DR Congo Nigeria local content study tour is poised to offer invaluable insights for the development of DRC oil gas local content policies.

Nigeria's journey in local content development, spearheaded by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act enacted 16 years ago, has yielded substantial results, achieving a 61% local content capacity. This legislative foundation has been instrumental in transforming the nation's oil and gas landscape, creating an environment where indigenous firms can thrive. For instance, the recent divestment of onshore oil and gas assets by international oil companies has opened doors for Nigerian entities such as Renaissance Africa Energy Company, SEPLAT Energy PLC, and Oando Energy Resources Nigeria Limited to acquire and successfully operate these assets.

While foreign companies continue to dominate deep offshore operations, Nigerian oil and gas operating and service firms have progressively taken control of land and shallow water assets, thereby driving significant local content growth. The financial backbone for these initiatives is provided through an industry-funded mechanism: a 1% Nigerian Content Development Fund (NCDF) levy applied to all awarded upstream oil and gas contracts. The NCDMB, through its representative Dr. Abdulmalik Halilu, Director of Corporate Services, affirmed its readiness to assist the DRC in establishing its own robust local content framework, outlining a 10-year strategic roadmap for Nigeria that targets 70% in-country value retention and the creation of over 300,000 direct jobs by 2027.

Minister Simplice Stev Onanga of the Republic of the Congo expressed profound admiration for Nigeria's accomplishments, acknowledging its unique position as the sole African nation to have achieved considerable self-sufficiency in oil and gas local content. He remarked that the delegation was 'proud to be in Nigeria to witness what has been accomplished,' underscoring the aspirational nature of their visit. Senator Lokpobiri, conveying greetings from President Bola Tinubu, assured the DRC delegation of Nigeria's full transparency in sharing its experiences and lessons learned regarding the NCDMB local content model.

The comprehensive study tour, which is scheduled to conclude on Friday, encompasses a wide array of engagements designed to provide the DRC delegation with practical insights into the NCDMB local content model. Their itinerary includes visits to the NCDMB Headquarters in Bayelsa State, fabrication workshops at the Onne Free Zone, a supplier session with NLNG, the UniPort Gas Centre, and the LADOL/Nigerdock yards, among other crucial sites. These visits aim to showcase Nigeria's institutional structures and regulatory synergy firsthand, offering a blueprint for potential DRC oil gas local content development, directly influenced by the expertise of Simplice Stev Onanga NCDMB engagement.

Lawyers and compliance officers involved in the DR Congo's oil and gas sector should monitor developments closely, as this study tour signals a strong intent to introduce or strengthen local content regulations, potentially mirroring Nigeria's NOGICD Act and NCDMB framework. This could lead to new compliance obligations, contractual requirements, and opportunities for local participation in the DRC.

Source: Original reporting via Premium Times