Defence Industries, Oida Energy to Establish Nigeria’s 1st Oilfield Shaped Charge Manufacturing Facility

The Defence Industries Corporation of Nigeria (DICON) and Oida Energy Limited weekend signed a landmark Memorandum of Understanding (MOU) to establish Nigeria’s first in-country oilfield shaped charge manufacturing facility; marking a significant advancement in realizing government’s aspiration for enhanced local capacity development and industrialization.

The historic MOU which was signed at the Armed Forces Officers’ Mess & Suites, Abuja, also indicates major step by the technical units of the nation’s military forces towards civilian collaboration in solving operating challenges in the petroleum industry.

The partnership further signifies a momentous initiative and strategic stride towards strengthening Nigeria’s industrial base, deepening local content in the petroleum sector, and enhancing national security by reducing reliance on imported oilfield explosive technologies.

The MOU signing ceremony was witnessed by representatives of the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr Gbenga Komolafe; representatives of the Office of the National Security Adviser (ONSA), Mallam Nuhu Ribadu; as well as directors and officers of DICON and officials of Oida Energy.

Director General of DICON, Major General Babatunde Ibrahim Alaya, described the MOU as “a decisive move towards building indigenous capacity in sensitive and strategic technologies.”

He said the facility will deliver safe, reliable, and locally manufactured shaped charges for upstream petroleum operations while creating jobs, enabling technology transfer, and conserving foreign exchange.

Until now, most of the specialized equipment relating to deployment and management of volatile elements are imported at great cost. And with the new MOU, local sourcing of such equipment would now cost less with no pressure on the country’s foreign exchange reserves.

DICON was established in 1964 and had Fritz Werner of Germany as initial partner to provide technical expertise and become a leading force in indigenous defence manufacturing in Africa.

The company works to become globally recognized for innovation, reliability and strategic partnership, in contributing to national security while delivering sustainable cutting edge defence solutions.

Oida Energy is popular across Sub-Sahara Africa, the Middle East, and Asia as providers of innovative, value-added solutions that optimize oil and gas field performance for producers.

The partnership between Oida Energy and DICON, according to the parties, was facilitated by the Nigerian Content Development and Monitoring Board (NCDMB), the agency of the Ministry of Petroleum Resources established by law to build the requisite capacity for domiciliation and domestication of petroleum industry activities for the benefit of the local economy.

The NCDMB, they stated, played a critical enabling role in forging the alliance of the public and private partners; ensuring through its strategic guidance and collaboration that the partnership aligns with Nigeria’s local content policy and industrialization agenda.

The MOU with DICON, according to the partners, reflects the power of collaboration among government institutions, regulators, and the private sector in advancing national industrialization and achieving Nigeria’s ambition of self-reliance in critical energy and defence technologies.

Managing Director of Oida Energy, Engr Emeka Ene, restated the company’s “commitment to delivering world-class local manufacturing solutions that will strengthen Nigeria’s energy and security value chains.”

The partners restated their acknowledged of the crucial role played by the NCDMB in facilitating the partnership as part of its mandate to identify, harness and deploy in-country capacity in the petroleum industry.

They also commended the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, on making the MOU possible. They thanked Senator Lokpobiri for the invaluable support, leadership, encouragement and “the policy backing necessary for this ground-breaking initiative.”