Nigeria Content Online

The Nigerian
Content Development & Monitoring Board (NCDMB) is to issue
guidelines for operators in the nation’s downstream petroleum industry.
The guidelines are meant to regulate their compliance with the
provisions of the Nigerian Content Act, Ernest Nwapa, Executive
Secretary of the Board, said at the weekend.

Speaking during a
meeting with chief executives of downstream companies, Mr Nwapa, said
the provisions of the Nigerian Oil and Gas Content Development Act also
cover activities in the downstream sector, contrary to the belief by
some stakeholders that it is intended to regulate upstream operations
alone.

According to him,
the essence of the meeting with the operators was to get their views
and take them into account in the formulation of the Nigerian Content
Regulations for that sector of the nation’s petroleum industry, which
the Board is to release shortly.

Emphasising the
need to fully comply, Mr Nwapa said: “These regulations would have
obvious implications and could be disruptive to business operations in
downstream sector if key stakeholders do not key in to the
requirements.”

He also said the
successful implementation of the Nigerian Content Act requires strict
compliance by indigenous operators as its primary focus goes beyond the
international operating companies (IOCs) and their service counterparts.

Mr Nwapa explained
that the Nigerian Content Development & Monitoring Board expected
the operators in the downstream sector to prove that they have the
capacity to engage Nigerian service providers in the acquisition and
maintenance of their assets, comply with the Cabotage Act in their use
of marine vessels as well as meet the training and employment
aspirations enshrined in the Act.

He explained that
it was wrong to believe that existing indigenous operators in the oil
and gas industry are already in compliance with the Nigerian Content
Act on the basis of their ownership of businesses and employment of
Nigerians.

Multiplicity of players

Mr Nwapa also
directed downstream companies to ensure that genuine Nigerian owned
marine vessels that meet technical requirements are fully utilised in
their operations, particularly in the lightering of products before
foreign owned vessels are engaged to satisfy the “first consideration”
requirements of the law.

“The Nigerian
Content Act seeks, among other things, to increase the participation of
indigenous companies in the Nigerian oil and gas industry and promote
the ownership of marine vessels and equipment by Nigerians,” he said.

Other opportunities
for the maximisation of Nigerian Content in the downstream include the
fabrication and maintenance of tank farms in Nigerian fabrication yards
and the manufacture and maintenance of retail pumps and other
accessories in-country, he said.

To ensure that the
multiplicity of players in the downstream does not make regulation
difficult, Mr Nwapa said the Board will develop a unique framework
adapted to the downstream industry and create a Nigerian Content
template which will help operators achieve compliance.

Representative of
Honeywell Oil & Gas, Ekpeyong Etim, admitted that there are cases
where downstream companies use foreign flagged vessels in the
lightering of imported refined products.

He blamed the practice on the failure of most Nigerian owned vessels
to comply with standard conditions required for vessels that will work
in the oil industry, like having insurance cover and requisite
certification.