Halliburton Boosts Local Content in Africa, Seeks Interest in Oil & Gas Ventures

African American developer explores location of operating pump jacks producing crude oil. Bearded engineer examines meadow at sunlight. Image Credit: AEC

Halliburton is proving time and time again that an international company can play a major role in driving local content, even without dedicated regulation in place

May 20, 2024/AEC

Multinational oil service company Halliburton is inviting eligible local companies to submit an Expression of Interest (EOI) for the supply of goods and services across the oil and gas industry. With various categories available, the EOI aims to assess local interests and capabilities, connecting players to oil and gas projects. Following submissions, a competitive bidding process will lead to the selection of preferred and alternative suppliers.

As the voice of the African energy sector, the African Energy Chamber (AEC) commends the commitment by Halliburton to give opportunities to local companies across the oil and gas value chain. In Africa, this step will lead to enhanced participation by African-based companies and service providers, and is a testament to the role international companies can play in spearheading local content– even in countries without a dedicated local content law in place.

The EOI encompasses categories supporting oil and gas operations, including machine repair and operation tools; oil, lubricants and tyers; lifting materials and accessories; welding and fabrication; calibration, certification and fuel; and many more. This not only supports participation by local players but strengthens supplier diversity, enabling Halliburton to draw competitive and strategic advantages from established relationships with local suppliers. The EOI not only creates an in-roads for local service providers but supports national and local capabilities, stimulates economic growth and market expansion.

Additionally, the categories cover associated support services such as car rentals; medical clinics; security services; IT hardware; office suppliers and merchandise branding; PPE and safety equipment; transportation; travel agencies; and more. Other categories include logistics services; auditing; tax and advisory services; manufacturing; storage and electronics. This supports participation by companies that are not only directly active in the oil and gas industry but across the entire economic spectrum.

As the second-largest energy service company worldwide, Halliburton boasts a strong presence in Africa and is active in numerous large-scale energy projects. The company’s projects are underpinned by a mission to drive sustainable energy projects across the continent. In Namibia, Halliburton won 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 from Q4, 2024 on. Halliburton has shown a commitment to local content development in the country despite the fact that Namibia’s local content policy is still in the draft phase and has not yet been implemented. This shows a dedication to in-country development and Namibians should gain insight from this approach and establish joint ventures with multinationals such as Halliburton. This will ensure local content is at the forefront of industry growth, and will only be accelerated as policy is brought into place.

Meanwhile, in March 2023, the company made a return to Libya, winning a $1.4 billion contract with Honeywell to develop and oilfields and refinery for the country’s National Oil Corporation. Following securing nine contracts by Woodside Energy for offshore oil and gas activities in Senegal, Halliburton has played an instrumental part in supporting the construction of the first phase of the Sangomar Oilfield Development – which is on track for first production in the coming weeks. Through the contracts, the company has spearheaded employment opportunities in Senegal’s oil and gas industry while collaborated with local service providers on project development. Similar achievements have been made in Nigeria, where the company secured a $300 million deal with Shell Petroleum Development Company of Nigeria for a large-scale offshore gas project. In 2023, a Halliburton Nigeria production facility reached its 10-million-barrel milestone. Across all these developments, Halliburton’s commitment to local content has led to fruitful opportunities for communities.

Through an established local content strategy, Halliburton is dedicated to not only creating value for clients regarding oil and gas projects but unlocking opportunities for the communities in which the company operates. The EOI is a testament to this strategy, and oil service companies active across the continent can lead from and follow this example. Halliburton’s local content strategy shows that companies do not need to wait for the requisite laws before they act: local content can form the base of operations despite a lack of policy.

“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.

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