PCTS Advocates Performance-Driven Local Content, Equal Access to Onshore Energy Projects

Peter Uzoho

International oil and gas service companies under the umbrella of Petroleum Contractors Trade Section (PCTS), are calling for equal opportunities and competition in Nigeria’s onshore projects.

The Chairman of PCTS, Rosario Osobase, made the call while speaking at the 9th Nigerian International Energy Summit (NIES) in Abuja, themed: “Energy for Peace and Prosperity: Securing Our Shared Future”.

PCTS is an umbrella body of the major multinational oil and gas servicing firms including: Bristow, Baker Hughes, SLB, Haliburton, TechnipFMC, Nigerstar7, Tenaris, and Shelf Drilling.

Osobase raised concern that current regulations unfairly restrict international service companies to offshore projects, limiting their participation in onshore and swamp areas.

She argued that this restriction hinders local content growth and value retention, as indigenous companies are allowed to dominate onshore projects.

She emphasized the need for a level playing field, consistent enforcement of capacity utilization, and performance-driven local content.

“Today’s realities see indigenous service companies playing in the land, swamp and offshore, but their international counterparties, like all of us in the PCTS umbrella, are limited to only play offshore (with limited projects). How realistic is this playing field to assure long term sustainability of the industry production ecosystem?”, she asked.

PCTS member companies are real technology owners, asset operators, Rig contractors, drilling and completion specialists, aviation and marine service providers, manufacturers, and infrastructure builders.

The chairman said they bring capital, carry execution risk, and are accountable for safety, quality, and accountabiity wherever they operate.

She added that the contractors also bring technology, expertise, and investment to Nigeria, and transfer skills, build local supply chains, and develop indigenous companies.

Osobase stated that partnerships similar to a few models that some PCTS member companies have built over the years with notable indigenous service players are based on mutual accountability, not convenience, which needs to be replicated.

“When partnerships are designed around capability transfer, governance discipline, and long-term competitiveness, indigenous companies do not remain subcontractors. They become industry leaders, exporters of services, and employers of skilled Nigerian talent”, she stated.

Under the Petroleum Industry Act (PIA), she said Nigeria now has an opportunity to entrench performance-driven local content, where value retention is measured not only by participation, but by efficiency, safety, cost competitiveness, and sustainability.

For this to succeed, she said three things must remain non-negotiable — a steady pipeline of bankable projects to keep in-country capacity alive and productive.

The second condition, she said, is consistent enforcement of capacity utilization to ensure that investments made locally are not stranded.

Osobase stated that the third condition is to ensure that partnerships are built on mutual accountability, not convenience, such as the partnership between Baker Hughes and Geoplex.

According to her, when these conditions are met, local content becomes a stabilizing force, creating jobs, reducing cost inefficiencies, strengthening institutions, and ensuring value is retained efficiently across the sector.

She confirmed that for the first time in a very long time, the industry now sees the political will to assure this mid to long term outlook.

According to her, the Bonga North Project has paved the way for other Deepwater projects.

Consequently, companies such as Pipe Coaters (operated by Tenaris) are benefiting from this project as the company recently added multi-million dollars of investment to revamp the thermal insulation coating plant to support the coating of SNEPCo’s Bonga North project linepipes.

She also cited the Project 1Million Barrels targeted at unlocking $7 billion in capital over the next years as well as Shell’s pronouncement of intention or plan to invest an additional $20 billion in another Deepwater project as good signs of a robust pipeline of projects.

Osobase advocated for “less focus on how much is localized through participation, and more on how well it performs and retains value efficiently. Because performance that retains value efficiently is what builds industrial powerhouses and secures our shared prosperity and our shared future.”

She encouraged stakeholders to focus on value retention and performance, citing Saudi Aramco’s IKTVA (In Kingdom Total Value Add), a programme designed to strengthen Saudi Local Content, as an example.

With the Nigerian Content Development and Monitoring Board (NCDMB) playing a crucial role in driving local content, Osobase advocated for collaboration between policy makers, industry regulators, operators and international service companies to achieve true industrialization, job creation and eventually value retention for Nigeria.