…..As NEITI Warns Against NNPC 445,000bpd
…….Stakeholders Speak On Achieving Local Content
The Nigerian Content Development and Monitoring Board (NDCMB) has listed key gains and challenges of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 while unveiling plans of the agency to site a National Oil and Gas Park close to oil-producing communities.
This was revealed by Director, Monitoring and Evaluation NCDMB, Mr. Tunde Adelana, while delivering a paper titled Nigerian Content Act: Issues, Challenges and The Way Forward at the Local Content Policy Workshop going on in Calabar.
According to Adelana, the core values of the NOGICD Act of 2010 which is to integrate oil-producing communities into the oil and gas value chain, link oil and gas sector to other sectors of the economy, maximise participation of Nigerians in oil and gas activities and maximize utilization of Nigerian resources i.e. goods, services and assets could not be overemphasised.
In his words “We have been operating in the oil and gas industry for close to 60 years since the discovery of oil in Oloibiri, Bayelsa in 1958, but the gains of the last six years since the enactment of the NOGICD Act, cannot be overlooked’
He however decried the lack of up-to-date information on capacity of local companies and performance of contracts, lack of confidence in the use of locally made goods, readiness of the local supply chain to meet up with the increasing oil & gas industry technology advancement and weak coordination across enforcement entities like expatriate quota approvals by the board before final approval by the Federal Ministry of Interior as some of the challenges the agency is facing in the full implementation of the NOGICD Act 2010.
He also unveiled the plan of the agency to establish Oil and Gas parks close to oil-producing communities that will serve as a hub for the manufacture of equipment components, spare parts and chemicals for the oil and gas industry.
“It is our intention to create a park that will serve as a manufacturing hub for the manufacturing of equipment components, spare parts for all the players in the oil and gas industry, he said
This according to him will enable manufacturing companies who are into typical materials — valves, seals, fittings, flanges, bolt & nuts, well tools; drilling & production chemicals — to be closer to those who need the services.
He also revealed that the agency had already acquired land in Bayelsa, Cross River and Imo states to facilitate this project.
In another development, The Nigeria Extractive Industries Transparency Initiative (NEITI), has warned that The Nigerian National Petroleum Corporation (NNPC) should not continue to be allocated 445,000 bpd in the absence of the corporation’s capacity to refine the product while urging the Federal Government to urgently privatise the refineries.
This is according to the Director of Communications, NEITI, Dr Orji Ogbonnaya Orji, while speaking on the topic: Ensuring Transparency and Accountability in the Oil and Gas Industry at the three-day stakeholders’ workshop on the Nigeria Local Content Policy in Calabar.
“In the face of the comatose nature of our refineries, it is baffling that NNPC is allocated 445,000 bpd when they do not have the capacity to refine the products.
“It is our position that the allocation given to NNPC should be cut to what it can actually refine”
Meanwhile, stakeholders at the ongoing Nigerian Content Workshop in Calabar have explained how the local content act goals could be achieved
According to the President of Ships Owners Association of Nigeria (SOAN), Engineer Greg Ogbeifun, construction of vessels by Nigerian companies should be encouraged. This should be supported with technology acquisition and transfer. This will reduce cost of doing business in the sector.
According to the MD CEO of AOS Orwell Limited, Mr. Femi Omotayo, while delivering his paper titled, Integration of the Procurement Process with Local Capacity, Local procurement requires a real commitment from the company to work with and build capacity of local suppliers in a way that enables them to become more competitive and profitable.
“Typically, these suppliers will be small and medium enterprises (SMEs). To compete for bidding and contracting opportunities, local SMEs will often need training to bring them up to the required operational, safety, environmental and technical standards.
He urged that a local procurement program (LPP) should seek to bridge the gap between the standards of the contracting company and the existing capacity of SMEs. It does this externally, he added, through the provision of training, mentoring, and other support for SMEs, and internally, through a concerted effort to identify opportunities, communicate the business case and encourage staff to commit to local procurement.
“We also really need to strike a balance between the government objective, NCDMB objective as well as the IOCs and service companies’ objectives as regards what local procurement really entails he said.
Delivering a paper titled, Innovative Manpower Development in the Oil and Gas Industry: Critical Issues and Solutions, Mr. Aminu Ahmed Galadima, the Acting Executive Secretary of Petroleum Technology Development Fund (PTDF) said the task of manpower development is an onerous task which the agency had battled for years
“The task of manpower development in a colossal industry like the Oil & Gas is such a challenging endeavour which the PTDF has battled with for years, viz: paucity of funds as a result of high cost associated with overseas training, upgrade projects, cost of equipment, funding researches, etc.
He explained that for the Industry to succeed in removing the cog in the wheel of manpower development, some urgent and deliberate measures must be put in place:
“There must be improved and timely release of funds by the Government specifically meant for manpower development in the Oil & Gas Industry, we should also encourage the Public Private Partnership in manpower development in the Oil & Gas Industry.
He also called for collaboration between sister agencies in the industry for the purpose of manpower development while calling on international oil companies to allow capacity building agencies in the industry to access their training and research funds.
