Dhir: Tullow Oil focused on developing African resources

Tullow Oil, under the leadership of CEO Rahul Dhir, is at the forefront of shaping Africa's dynamic energy sector with a strong emphasis on developing local resources. In an exclusive interview with CNBC Africa's Fifi Peters at Africa Energy Week in Cape Town, Dhir emphasized the critical role of local content in unlocking community value and driving sector progress. Dhir highlighted Tullow's commitment to developing African resources, stating that local content is vital for leveraging the value of resources for the benefit of host communities and governments. He touched on the ongoing structural changes in the industry and the opportunities and challenges they present. Dhir outlined key initiatives aimed at enhancing local content and value creation, including capacity building, training programs, and sector adoption projects. The CEO also shared Tullow's efforts in mandating local fabrication for projects, showcasing the company's dedication to promoting indigenous participation in the sector. Dhir addressed the prevalent sentiment among African governments that more needs to be done by private companies to enhance local content development. He underscored the barriers faced by local businesses, such as limited access to affordable capital and regulatory constraints, calling for a conducive environment to foster the growth of regional businesses. The discussion delved into the complexities of balancing stakeholders' participation within the energy value chain while attracting private investments. Dhir emphasized the need for practical solutions to address challenges and facilitate the development of genuine local businesses. Transitioning to mature fields, Dhir highlighted the current industry shift in asset ownership from major companies to independents and indigenous players, posing challenges related to high costs and environmental footprints. He underscored the importance of operational excellence, cost discipline, and sustainability practices in maximizing opportunities in mature assets. Reflecting on Tullow's experience of doing business in Africa, Dhir acknowledged the perceived risks but emphasized the company's track record of effectively managing them. He addressed the need for stability in contracts and regulatory frameworks to mitigate the perception of risk and attract investments. Dhir's insights shed light on Tullow Oil's strategic focus on promoting local content, navigating industry challenges, and driving sustainable growth in Africa's energy sector.