NCDMB to sign service agreement with indigenous petroleum producers

According to NCDMB, the agreement will guide the submission and management of statutory reports between both parties.

The new SLA, similar to the type signed between the Board and the Nigerian Liquefied Natural Gas Company, NLNG, in May 2017, will commit members of the IPPG to compliance with the Nigerian Content Act, while the board will keep to a definite response time for reviews and approvals of contracting documentations.

The SLA will take into consideration the capacity of the indigenous producing companies and provide necessary concessions as may be necessary.

These resolutions were reached at a meeting between the Executive Secretary, NCDMB, Engr. Simbi Wabote, and members of the IPPG in Lagos.

The independent producers also promised to partner the board to equip the Petroleum Technology Development Fund’s Vocational Training facility in Port Harcourt, Rivers State, for the purposes of imparting key skills that are currently lacking in the industry.

Commenting on the agreement, Wabote explained that IPPG were products of the Nigerian Content Policy hence, the firm needed to work with the board to take the implementation to the next level.

He stressed that Nigerian Content Act was not applicable to only foreign companies but to all players in the oil and gas industry.

“Some Nigerian companies assume erroneously that being wholly indigenous makes them complaint. But Local Content extends to employment, procurement, training among other things,” he said.

Wabote further challenged the indigenous producers to partner the board to develop research and development centres of excellence in-country so that problems encountered in their operations can be resolved locally.

Chairman of IPPG, Mr. Ademola Adeyemi-Bero, pledged the readiness of the members to comply with the provisions of the Nigerian Content Act.