In a recent development, the hydrocarbons ministry of Equatorial Guinea has tightened the rules regarding local content in the oil and gas industry. This move has been welcomed by Schlumberger and Subsea 7, two major players in the sector.
The change in local content rules has been attributed to the efforts of Jacinto Nguema Owono, who had been serving as the director general of the hydrocarbons ministry since 2018. However, Owono has now been replaced following a change in minister.
The move towards greater local content is part of a broader trend in many African countries, which are seeking to boost economic development and create jobs by ensuring that a greater proportion of the value generated by extractive industries remains within the country.
For companies like Schlumberger and Subsea 7, the change in rules represents a challenge, as they will need to ensure that they are compliant with the new regulations. However, both companies have welcomed the move, stating that they are committed to supporting the development of local industry and talent.
Schlumberger, which has been operating in Equatorial Guinea since 1982, has already made significant investments in local content, including the establishment of a local training center for oil and gas professionals. The company has also worked with the government to develop policies and regulations that promote local content.
Subsea 7, for its part, has also been involved in efforts to build local capacity and expertise, including through local partnerships and investments in training and development programs.
The move towards greater local content in Equatorial Guinea is expected to create new opportunities for local businesses and entrepreneurs, while also helping to develop the country’s workforce and economy more broadly. However, it also represents a significant challenge for foreign companies operating in the country, who will need to balance the demands of compliance with the need to remain competitive and profitable.
For now, stakeholders are waiting to see how the new rules will be implemented and what impact they will have on the industry. However, it is clear that the move towards greater local content represents an important step in the ongoing development of Equatorial Guinea’s oil and gas sector.