Halliburton boosts local content in Africa, seeks interest in oil & gas ventures

JOHANNESBURG: Multinational oil service company Halliburton has taken a significant step toward enhancing local participation in the oil and gas sector. The company is inviting eligible local businesses to submit an Expression of Interest (EOI) for the supply of goods and services across various categories within the industry.

This move aims to assess local interests and capabilities while connecting players to oil and gas projects. Following submissions, a competitive bidding process will determine the selection of preferred and alternative suppliers.

The African Energy Chamber (AEC), as the voice of the African energy sector, commends Halliburton’s commitment to fostering opportunities for local companies throughout the oil and gas value chain. Even in countries without dedicated local content laws, this initiative will lead to enhanced participation by African-based companies and service providers. It underscores the vital role that international companies can play in spearheading local content development.

The EOI covers a wide range of categories supporting oil and gas operations, including machine repair and operation tools, oil, lubricants, tires, lifting materials, accessories, welding, fabrication, calibration, certification, and fuel supply. By encouraging local players’ participation, Halliburton not only strengthens supplier diversity but also leverages competitive and strategic advantages from established relationships with local suppliers. The EOI serves as a pathway for local service providers and simultaneously supports national and local capabilities, stimulating economic growth and market expansion.

In addition to core oil and gas operations, the EOI extends to associated support services such as car rentals, medical clinics, security services, IT hardware, office supplies, merchandise branding, personal protective equipment (PPE), safety gear, transportation, and travel agencies. Furthermore, it encompasses logistics services, auditing, tax advisory, manufacturing, storage, and electronics. This inclusive approach encourages participation by companies active not only in the oil and gas industry but across the entire economic spectrum.

Halliburton, as the second-largest energy service company globally, maintains a robust presence in Africa and actively engages in numerous large-scale energy projects. The company’s mission centers on driving sustainable energy initiatives across the continent. Notably, in Namibia, Halliburton secured a contract in 2024 for a deepwater multi-well construction project in Block 2914A. The company will provide solutions for the construction of exploration and appraisal wells starting in Q4 2024. Remarkably, Halliburton’s commitment to local content development in Namibia remains steadfast, even though the country’s local content policy is still in the draft phase and has not yet been implemented. This dedication sets an example for in-country development, encouraging Namibians to explore joint ventures with multinationals like Halliburton. Such collaborations will ensure that local content remains at the forefront of industry growth, further accelerated as policies are formalized.

Meanwhile, in March 2023, Halliburton made a triumphant return to Libya, securing a $1.4 billion contract with Honeywell to develop oilfields and a refinery for the country’s National Oil Corporation. Additionally, the company’s collaboration with Woodside Energy resulted in securing nine contracts for offshore oil and gas activities in Senegal. Halliburton played a pivotal role in supporting the construction of the first phase of the Sangomar Oilfield Development, which is on track for first production in the coming weeks. These achievements extend to Nigeria, where Halliburton clinched a $300 million deal with the Shell Petroleum Development Company of Nigeria for a large-scale offshore gas project in 2023. Through these endeavors, Halliburton not only contributes to employment opportunities in Senegal and Nigeria’s oil and gas sectors but also collaborates closely with local service providers to drive project development.

The company’s proactive approach demonstrates how international players can positively impact local economies and foster sustainable growth in the energy industry, even in the absence of specific local content legislation. As Halliburton continues to lead by example, other companies should take note and actively engage in similar endeavors to promote inclusive and impactful industry development  .

“While various countries have already implemented local content policies that support local participation in oil and gas developments, many nascent producers have yet to establish the relevant local content regulation. Yet, companies such as Halliburton are proving that international service providers, project developers and investors can do a lot without a local content law. Halliburton is not only giving opportunities to local companies but is laying the foundation for a vibrant oil and gas landscape in Africa. Other international companies should learn from Halliburton’s local content strategy,” states NJ Ayuk, Executive Chairman of the AEC.   

Halliburton sold Russia operations to Russians

Add a Comment

Your email address will not be published. Required fields are marked *