Local Content level hits 35% in oil, gas industry

The Nigeria local content  drive in the Oil and Gas  industry has hit 35 per cent,  according  to Abdulmalik Halilu, Manager, Strategy and Policy Development Division (SPDD),of the Nigerian Content Development and Monitoring Board (NCDMB)who  disclosed this while making a presentation to  the Ugandian delegation that visited the  Board.

He stated that the percentage of Nigerian Content in the oil and gas industry had increased from less than five per cent before 2010 to 14 per cent in 2014 and 35 per cent in 2015.He added that the Board’s interventions were expected to increase local content levels to 50 per cent by 2017.

According to him, contracts awarded by operating companies to Nigerian service companies had also increased from about 40 per cent of total contracts before 2010 to 75 per cent in 2015 while the target was to achieve 85 per cent by 2017.

Welcoming the delegation earlier, Daziba Patrick Obah, Acting Executive Secretary,  had commended the Ugandan Government for identifying Nigeria as a shining example in the implementation of local content, noting that other African countries like Kenya and Congo Brazzaville had also sought Nigeria’s mentorship of their local content initiatives.

He also extolled the Ugandan officials for deciding to institutionalize local content at the onset of their oil and gas industry as it would guarantee tangible benefits for their citizens aside the revenue that would accrue from the sale of crude oil and gas.

The NCDMB boss stated that Nigerian Content had helped the government and the Nigerian people reverse the flight of industry spend to foreign countries in the form of personnel, materials, equipment, fabrication and engineering designs.

The Executive Secretary further explained that the Nigerian Government was the driving force behind the implementation process, stressing that strong political will was necessary to overcome powerful forces opposed to the implementation of local content.

He advised the Ugandans to develop robust regulations that are applicable to the state of their industry and technological base while encouraging collaboration with local and international stakeholders to domicile capacity in-country.

The Ugandan delegation was in the country in its quest to model the development of their local content policies after the Nigerian Oil and Gas Industry Content Development (NOGICD) Act which has achieved immense benefits for the Nigerian economy and attracted commendations from local and international stakeholders.

In his introductory remarks, the leader of the delegation, Ernest Rubondo, Director of Petroleum in the Ministry of Energy and Mineral Development in the Republic of Uganda, explained that the East African country was at the cusp of investing $20bn in the development of 15 oil fields, construction of a refinery and an export pipe line- projects which were expected to be completed within five years.

According to him, the leadership of the country were determined to retain a substantial part of the $20bn spend within the country and hence their mission to share Nigeria’s experience in local content which would help their country succeed in that regard.

In his remarks, the Director of Monitoring and Evaluation, NCDMB, Tunde Adelana indicated that Nigeria was the only country that enacted a dedicated law for local content whereas other jurisdictions have local content provisions subsumed in existing laws guiding their oil and gas industry.

He encouraged the Ugandans to decide on the model that would encapsulate their local content aspirations.

Olusola Bello