As Senegal and Mauritania prepare for first gas to come online in 2024, the MSGBC region is poised to leverage its extractive industries for enhanced local content development. Serving as a catalyst for the growth of national companies and service providers in the energy sector, well-crafted local content policies have the potential to stimulate local participation, job creation and value retention. Local content also stands to improve the international partnerships that facilitate knowledge, skill and technology transfer.
GTA Project Partners Maximize Local Value
Having achieved first oil in June and with first gas from the Greater Tortue Ahmeyim (GTA) project expected later this year, Senegal is poised to maximize benefits across the oil, gas and mining sectors through its Local Content Development Fund and National Local Content Monitoring Committee. Senegal’s establishment of these decrees aims to bolster local capacity for training and support for small- and medium-sized enterprises, with the objective of achieving a 50% local content ratio by 2030.
In Mauritania, to enhance local content amid the upcoming gas production from the GTA project – which straddles the maritime border between Senegal and Mauritania – authorities are crafting a new local content law. In 2022, the Mauritanian Ministry of Energy, Petroleum and Mines adopted a national strategy to maximize value across the oil, gas and mining sectors, focusing on goods and services provision, skills enhancement and technology transfer.
As a partner on the GTA project, upstream oil company Kosmos Energy launched the Mauritania Innovation Challenge, which is designed to support entrepreneurs under the age of 40. Notable beneficiaries from the program include iMauritanie, which works to enhance public administration communication; Sekam, experts in non-GMO vegetable production; Ayadi Amila, which crafts accessories from recycled materials; and FASEl, which leads local salt processing.
Meanwhile, GTA operator bp has collaborated with the government of Senegal to enhance local capabilities within the country’s expanding oil and gas industry, equipping local workers with technical skills. The partnership includes financial support for equipment and training, internship opportunities and academic support. bp has also sought to undertake efforts to preserve the local marine ecosystem in the region and is working with the Regional Partnership for the Conservation of Coastal and Marine Areas in West Africa to enhance expertise in marine and coastal environments, while generating valuable information and data about the ecosystem.
MSGBC Region Supports Cross-Sector Workforce
As the second-largest iron producer in Africa, Mauritania has sought to leverage its mining expertise to transition its skilled workforce to the oil and gas industry. Collaborating with bp, the Ministry has established a distance learning center that facilitates training courses for local suppliers and technicians involved in petroleum operations.
While still in the early stages of exploring its oil and gas potential, The Gambia’s Petroleum Exploration, Development and Production Licenses system outlines a local content strategy for the country’s extractives sector. Established in 2015, the strategy involves a partnership between public and corporate entities and aims to promote local investment and employment opportunities in exchange for sector participation rights.
Meanwhile – set to launch its first licensing round for 22 blocks in late-2024 – Guinea-Conakry has implemented a strong local content strategy which outlines that companies looking to enter the country’s extractive sector must submit a plan for sourcing local goods and services with their license applications. This strategy is reflected in the signing of over $120 million in new freight contracts last October by global mining group Rio Tinto with Guinean companies Africa Transport, the Africa Maritime Agency and GPC Group for the country’s flagship Simandou iron ore project.