DICON, Oida Energy Forge Historic Partnership To Launch Nigeria’s First Local Oilfield Shaped Charge Manufacturing Facility

ABUJA – The Defence Industries Corporation of Nigeria (DICON) and Oida Energy Limited signed a landmark Memorandum of Understanding (MOU) to establish Nigeria’s first in-country oilfield shaped charge manufacturing facility.

The historic MOU, signed at the Armed Forces Officers’ Mess & Suites in Abuja, also represents a major move by the nation’s military technical units toward civilian collaboration in addressing operational challenges within the petroleum industry.

This partnership highlights a strategic initiative to strengthen Nigeria’s industrial base, deepen local content in the petroleum sector, and enhance national security by reducing dependence on imported oilfield explosive technologies.

The MOU signing ceremony was attended by representatives including the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr Gbenga Komolafe; officiaals from the Office of the National Security Adviser (ONSA), Mallam Nuhu Ribadu; as well as directors and officers from DICON and Oida Energy.Major General Babatunde Ibrahim Alaya, Director General of DICON, described the MOU as “a decisive move towards building indigenous capacity in sensitive and strategic technologies.”

He emphasised that the facility will provide safe, reliable, and locally manufactured shaped charges for upstream petroleum operations while creating

jobs, facilitating technology transfer, and conserving foreign exchange.

Until now, most specialized equipment required for handling volatile elements has been imported at great expense.

The new MOU promises to reduce these costs by enabling local sourcing, thereby easing pressure on Nigeria’s foreign exchange reserves.Established in 1964, DICON initially partnered with Fritz Werner of Germany to provide technical expertise, quickly becoming a leading force in indigenous defence manufacturing across Africa.

The corporation aims to gain global recognition for innovation, reliability, and strategic partnerships, contributing to national security with sustainable, cutting-edge defence solutions.

Oida Energy is well-known across Sub-Saharan Africa, the Middle East, and Asia for providing innovative, value-added solutions that enhance oil and gas field performance for producers.

The partnership between Oida Energy and DICON was facilitated by the Nigerian Content Development and Monitoring Board (NCDMB), a Ministry of Petroleum Resources agency mandated to build capacity for localizing petroleum industry activities and benefiting the Nigerian economy.

The NCDMB played a pivotal role in enabling this alliance between public and private sectors, ensuring strategic alignment with Nigeria’s local content policies and industrialization goals through its guidance and collaboration.