Uphold sanctity of Local Content law, PETAN urges oil firms

Petroleum Technology Association of Nigeria (PETAN) has warned upstream operators in the Nigerian oil and gas sector that it will not hesitate to take legal action against any of them that violate the Local Content law by contracting out jobs that can be done by Nigerian firms.

It says it will ensure that the law is implemented to the letter for the overall benefits of Nigeria.

According to the association, the Nigerian Content law is clear about the local content development and that any company that violates it by given jobs that can be effectively executed by Nigerian companies to foreign companies would have the court to contend with, as it already has legal redress on such matter.

Bank-Anthony Okoroafor, chairman of PETAN, at an interactive session with journalists in Lagos, advised companies not to run foul of the country laws, as there were many local competent companies that could do good jobs in the oil and gas industry.

Okoroafor said it was illegal and criminal ‎for foreign oil companies to get jobs in onshore and swamp areas when competent indigenous companies were available.

The association is keen to achieve value added local content that gives values to Nigeria and Nigerians, he said, adding that there is a Nigerian Content Law that states that oil servicing jobs in the onshore and swamp should be given to Nigerian companies.

Nobody can develop our country better than we can do, the PETAN boss said, but anywhere the capability does not exist in-country, anybody can do the job.

Where there is gap in deep offshore jobs, the association encourages alliance with foreign companies, he however said. But where the capacity and capability exists in-country, such jobs should be given to Nigerian companies.

Okoroafor recalled during the militancy days, foreign expatriates fled the Niger-Delta region while indigenous company workers continued with their production without fear of being kidnapped.

“We will ensure local content that builds capacity in Nigeria, local content that creates jobs in Nigeria, local content that leaves the dollar spent in Nigeria, local content that has multiple effects on Nigerians,’’ he said.

PETAN companies, he said, have the capacities and capability to deliver service to satisfactory standard of safety and quality across the entire value chain, from exploration to tank farm.

On the issues of refineries, he said Nigerian government has no business running refineries but to set policy that would drive business activities.

“Refinery business is a business on its own; governments do not run such businesses. It was good at the initial stage for government to kick-start such investments and be able to build capacity, but not now,” he said.