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    Thursday, July 4, 2024

    TotalEnergies’ Adherence to Local Content: An Essential Factor for Economic Advancement in Africa

    TotalEnergies’ unwavering commitment to local content development serves as a pivotal catalyst for economic growth across the African continent.

    By prioritizing dedicated dialogue, impact assessment, and socioeconomic development within its local content strategy, TotalEnergies seeks to foster long-term, sustainable growth across Africa.

    With operations in 43 African countries, TotalEnergies is a key player in the continent's oil and gas sector. Our approach to local content development ensures that our activities not only harness untapped energy resources, but also contribute to local employment, capacity building, and partnership formation. By prioritizing dialogue, impact assessment, and socioeconomic development, TotalEnergies remains committed to delivering sustainable benefits to the communities in which we operate.

    Angola: Driving Local Expertise in Offshore Projects

    TotalEnergies – alongside project partners Petronas and national oil company Sonangol – reached FID on the Kaminho deepwater project in Angola in May 2024. The project, situated in Block 20/11 and comprising the Cameia and Golfinho fields, represents the first major deepwater development in the Kwanza Basin and incorporates an FPSO with the capacity to produce 70,000 barrels per day (bpd). Notwithstanding the opportunity to support oil production in Angola by monetizing offshore resources, the project’s strong local content focus has already begun to deliver economic benefits for the country.

    The project involves 10 million hours of work to be conducted by local companies, primarily covering offshore operations and the construction of local sites. Additionally, the project prioritizes long-term capacity building and skills development. TotalEnergies and Sonangol signed an MOU in May 2024 to pool their expertise in research and technology, specifically collaborating on the development and operation of a research and development center in the city of Sumbe. The partners will also work towards developing the skills of Sonangol’s research and technology teams, with a focus on the fields of reservoir geology, process electrification and photovoltaics. As such, TotalEnergies aims to drive knowledge transfer and training, supporting Sonangol’s transformation into a competitive national operator.

    Nigeria: Generating Local Opportunities in Oilfield Production

    Active in Nigeria since 1956, TotalEnergies’ offshore operations have not only increased oil production in the country, but also created new jobs, business opportunities and training initiatives for local communities. TotalEnergies currently employs 1,800 people in the country, with various features of offshore projects constructed in Nigeria and delivered by local subcontractors.

    The company reached FID on the development of the Ubeta gas field in June 2024, alongside partner the Nigerian National Petroleum Corporation (NNPC). Situated in OML 58, the field will be developed with a six-well cluster connected to existing production facilities. TotalEnergies is working closely with the NNPC to enhance local content at OML 58, with more than 90% of the man hours for the new development worked locally.

    Other projects featuring local employment opportunities include the Ikike field in OML 99. The project started production in 2022, with 95% of the man hours worked locally. The platform and topside modules for the project were entirely built and assembled by local subcontractors, showcasing the scope of business opportunities available for local companies with field development in Nigeria.

    Uganda/Tanzania: Delivering Sustainable Infrastructure Solutions

    TotalEnergies is spearheading the development of the East African Crude Oil Pipeline (EACOP), a 1,443-kilometer pipeline connecting Uganda's Tilenga and Kingfisher fields to Tanzania's Port of Tanga. Local content is the foundation of the project, with a strong emphasis on training and employment of local personnel. As of 2022, EACOP has accumulated over 180,000 hours of training, benefiting 21,000 individuals across Uganda and Tanzania. By the end of 2023, the project employed approximately 1,200 people in Uganda and 3,200 people in Tanzania, with local employees contributing 92% of the total project hours. TotalEnergies prioritizes the utilization of local goods and services, resulting in significant procurement from local suppliers. In Uganda, $45 million worth of products have been purchased from local vendors, while in Tanzania, local suppliers have received $172 million in contracts.

    In March 2024, TotalEnergies inaugurated a $2.3 million Industry Enhancement Center in Uganda, with the objective of enhancing the capabilities of local small and medium-sized enterprises (SMEs) operating within the oil and gas sector. The center offers a comprehensive suite of services, encompassing industry-specific information, tailored business advisory services, training and capacity building programs, and market access facilitation. Through these initiatives, TotalEnergies endeavors to generate sustainable economic benefits for both Uganda and Tanzania, while simultaneously fostering the development of local market expertise.

    Republic of the Congo: Maximizing Job Opportunities

    TotalEnergies' local content initiatives extend to the Republic of Congo (ROC), where the company expanded its interests in the Moho license in April 2024. This deep-offshore project yields an average of 140,000 barrels of oil per day (bpd) and stands as the largest oil project in the country, contributing 60% to the national output. By prioritizing socioeconomic development and impact through the project, TotalEnergies has fostered employment opportunities, capacity building, and the participation of local stakeholders.

    The Moho Nord project involves the collaboration of 600 Congolese companies, resulting in the creation of 1,200 direct and indirect employment opportunities and the provision of 600,000 hours of training by TotalEnergies. This has had a positive impact on local employment and business activities, while also enabling stakeholders and companies to enhance their skills in accordance with international industry standards. A defining characteristic of the project is its focus on impact assessment, prioritizing energy efficiency, adopting a zero-flaring approach, and utilizing advanced technologies. These measures align with TotalEnergies' climate and socioeconomic objectives.
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