Multinational oil service giant Halliburton has opened its doors to eligible local companies across Africa, inviting them to submit Expressions of Interest (EOIs) for supplying goods and services within the oil and gas industry.
This initiative, spanning various categories, aims to gauge local interests and capabilities, thereby fostering connections between local businesses and oil and gas projects. Following the submission period, a competitive bidding process will identify preferred and alternative suppliers.
The African Energy Chamber (AEC), representing the voice of the African energy sector, lauds Halliburton’s efforts to empower local companies throughout the oil and gas value chain. This move is expected to significantly enhance the involvement of African-based companies and service providers, underscoring the pivotal role international firms can play in promoting local content, even in regions lacking specific local content legislation.
NJ Ayuk, Executive Chairman of the AEC, emphasized the importance of Halliburton’s approach, stating, “International service providers like Halliburton are showing that it’s possible to foster a vibrant oil and gas industry in Africa without the need for stringent local content regulations. Their actions serve as a model for other international companies looking to invest in Africa’s energy future.”
Halliburton’s EOI covers a wide range of categories essential to oil and gas operations, including machinery repair and operation tools, oil, and lubricants, lifting materials and accessories, welding and fabrication, calibration, certification, and fuel.
By engaging local players in these areas, Halliburton not only fosters supplier diversity but also leverages established relationships with local suppliers to gain competitive and strategic advantages.
Furthermore, the EOI extends to associated support services such as car rentals, medical clinics, security services, IT hardware, office supplies, personal protective equipment (PPE), safety equipment, transportation, travel agencies, logistics services, auditing, tax and advisory services, manufacturing, storage, and electronics.
This broad scope ensures that companies outside the direct oil and gas industry can also participate, contributing to a more inclusive and diversified economic ecosystem.
Halliburton’s Commitment to Sustainable Energy Projects
As the world’s second-largest energy service company, Halliburton maintains a robust presence in Africa and is actively involved in numerous large-scale energy projects. These endeavors are driven by a mission to promote sustainable energy initiatives across the continent.
Notably, Halliburton secured a contract in 2024 for a deepwater multi-well construction project in Namibia’s Block 2914A, demonstrating a commitment to local content development despite the absence of a formal local content policy in the country.
This approach sets a precedent for other multinational corporations to consider establishing joint ventures with local entities, ensuring that local content remains central to industry growth.
In addition to Namibia, Halliburton’s recent activities in Libya and Senegal highlighted the company’s dedication to local content and community development. In Libya, Halliburton partnered with Honeywell to develop oilfields and refineries, marking a significant return to the region.
In Senegal, following the award of contracts by Woodside Energy for offshore oil and gas activities, Halliburton has played a crucial role in the construction of the Sangomar Oilfield Development, set to commence production soon.
Similarly, in Nigeria, Halliburton’s collaboration with Shell Petroleum Development Company on a large-scale offshore gas project has led to substantial progress, with a production facility reaching a 10-million-barrel milestone in 2023.
Impact on Africa’s Energy Sector
Halliburton’s local content strategy underscores the potential for international companies to contribute positively to Africa’s energy sector without waiting for comprehensive local content legislation. By providing opportunities for local companies and stimulating economic growth through market expansion, Halliburton is paving the way for a more inclusive and prosperous energy landscape across the continent.
Halliburton’s invitation to local companies for EOIs represents a significant step forward in promoting local participation and economic growth in Africa’s oil and gas industry. By engaging with local businesses across a wide array of categories, Halliburton is not only enhancing supplier diversity but also setting a positive precedent for how international companies can contribute to sustainable development and community upliftment in Africa.
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