How TotalEnergies is Fueling Economic Growth in Africa through Local Content Initiatives
Operating in 43 African nations, French energy giant TotalEnergies plays a crucial role in the continent’s oil and gas sector. The company’s focus on local content development ensures that its African operations not only tap into energy resources but also foster local employment, skill enhancement, and partnership building. By prioritizing dialogue, impact assessment, and socioeconomic development, TotalEnergies is committed to delivering sustainable benefits to the communities it serves.
Angola: Boosting Local Expertise in Offshore Projects
In May 2024, TotalEnergies, alongside partners Petronas and Angola’s national oil company Sonangol, reached a final investment decision on the Kaminho deepwater project in Angola. Located in Block 20/11, the project includes the Cameia and Golfinho fields and features an FPSO capable of producing 70,000 barrels per day. This development, the first major deepwater initiative in the Kwanza Basin, emphasizes local content, bringing significant economic benefits to Angola.
The project involves 10 million hours of work by local companies, primarily focusing on offshore operations and construction. Additionally, TotalEnergies and Sonangol signed an MOU in May 2024 to collaborate on a research and development center in Sumbe, aimed at building long-term capacity and skills in reservoir geology, process electrification, and photovoltaics. This partnership seeks to facilitate knowledge transfer and training, aiding Sonangol’s evolution into a competitive national operator.
Nigeria: Creating Local Opportunities in Oilfield Production
TotalEnergies has been active in Nigeria since 1956, significantly boosting oil production while generating jobs, business opportunities, and training initiatives for local communities. Employing 1,800 people in the country, TotalEnergies ensures that many aspects of its offshore projects are constructed locally by subcontractors.
In June 2024, TotalEnergies and the Nigerian National Petroleum Corporation (NNPC) reached a final investment decision on the Ubeta gas field development in OML 58. The project will feature a six-well cluster connected to existing facilities, with over 90% of the man-hours worked locally. Similarly, the Ikike field in OML 99, which began production in 2022, achieved 95% local man-hours, with all platform and topside modules built and assembled by local subcontractors, highlighting the potential for local businesses in Nigeria’s oilfield developments.
Uganda/Tanzania: Building Sustainable Infrastructure
TotalEnergies leads the development of the East African Crude Oil Pipeline (EACOP), a 1,443km pipeline connecting Uganda’s Tilenga and Kingfisher fields to Tanzania’s Port of Tanga. Since 2022, the project has provided over 180,000 hours of training to 21,000 people in Uganda and Tanzania. By the end of 2023, EACOP employed 1,200 people in Uganda and 3,200 in Tanzania, with local employees working 92% of the project hours. TotalEnergies has invested heavily in local goods and services, purchasing $45 million worth of products from Ugandan suppliers and $172 million from Tanzanian suppliers.
In March 2024, TotalEnergies opened a $2.3-million Industry Enhancement Center in Uganda to bolster the capacity of local SMEs in the oil and gas sector. The center offers services such as industry information, business advisory, training, capacity building, and market access, aiming to create lasting economic benefits and develop local market capabilities in both Uganda and Tanzania.
