*Charges Board on noncompliance mechanisms
15 October 2017, Sweetcrude, Abuja – The Nigerian Content Development and Monitoring Board (NCDMB) must ensure that the Nigerian oil and gas industry is able to produce all its needs by the year 2027, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu has directed.
The Minister set the target at the just concluded Nigerian Content Workshop organised by New Planets Projects in conjunction with the Senate Committee on Petroleum Resources Upstream, in Owerri, Imo State.
He said the Federal Government expects that over the next 10 years, the Nigeria oil and gas industry, in collaboration with foreign investors, would have developed in-country capacities and capabilities to produce all its offshore platforms locally.
Kachikwu said, “I would like to see the Japanese coming; I would like to see the Koreans come here; I would like to see collaborative efforts that will make our oil industry produce everything that we need.”
He acknowledged the giant strides made by the Board in seven years, commending particularly the excellent achievements of the current Executive Secretary, Engr. Simbi Wabote, whom he credited for working with energy and passion and meeting several targets set for the Board in the past one year.
Noting that Nigerian Content achievement in engineering services had hit 80 percent, the Minister insisted that performance in offshore aspects of the industry was still substantially low and charged international and local operating oil companies to collaborate with the NCDMB to achieve the new target.
Kachikwu described Nigerian Content as the future of the industry. According to him, “It doesn’t matter how much money we make, how much gas we produce or alternative fossils we produce; if we do not ensure that a lot of that is captured locally in terms of benefits, we have no stake.”
Commenting on NCDMB’s strategies for addressing noncompliance with provisions of the Nigerian Content Act by some companies, the Minister said the focus should not be on identifying defaulters and penalizing them. According to him, NCDMB should develop corrective measures and understand why some companies fail to comply.
“The Board needs to develop corrective visitation programmes to institutions that have not complied. Sit down with them and do an audit of the issues and jointly develop models, giving specific timelines for delivery and create incentives for those who comply and penalties for those who blatantly refuse to comply.”
On industry’s capacity building initiatives, the Minister directed NCDMB, the Petroleum Technology Development Fund (PTDF) and the Petroleum Training Institute (PTI) to collaborate and develop a plan for training youths who are involved in pipeline vandalism, illegal refining, and other illicit activities in the oil and gas industry. The training programme will focus on improving their skillsets and getting them to embrace productive activities.
He said, “We need to find a middle-level specialized system of training people in the oil industry, a system that is not necessarily tied to degrees. We need to capture a lot of those in the hinterlands who have finished WAEC or their first diploma and don’t know where to go to but have some unique skillsets. We need to bring them to finishing schools.”
Kachikwu also directed the NCDMB, PTDF, and PTI to use existing industry facilities in Port Harcourt and Kaduna to carry out the planned training and other bespoke capacity building programmes for industry stakeholders. “We have to provide local competency training, relying on support from oil companies in terms of investment and overseas faculty.”