HOPE RISES FOR INDIGENOUS SHIPPING:

There are strong indications that a new lease of life is on the offing for indigenous shipping companies as International oil companies (IOCs) operating in Nigeria are expected to dump foreign-owned ships for indigenous ones by mid-year.
Dropping the heart-warming news recently, the Executive Secretary of the Nigerian Content Development and Monitoring Board, Engr. Ernest Nwapa confirmed that in June, 2012, the IOCs will hire 40 indigenously owned vessels to replace contracted foreign vessels.

There are strong indications that a new lease of life is on the offing for indigenous shipping companies as International oil companies (IOCs) operating in Nigeria are expected to dump foreign-owned ships for indigenous ones by mid-year.
Dropping the heart-warming news recently, the Executive Secretary of the Nigerian Content Development and Monitoring Board, Engr. Ernest Nwapa confirmed that in June, 2012, the IOCs will hire 40 indigenously owned vessels to replace contracted foreign vessels.
He recalled that foreign owned vessels and rig operators dominated the sector before the enactment of the Nigerian Content Act, resulting in $3bn capital flight.
According to him, the mover will translate to Nigeria retaining about $1.8bn in the Nigerian economy. He added that the policy of marine vessels and rig ownership that was adopted by the board was yielding positive results.
"From our calculation, in 2012, we will be retaining over $1.8bn just by ensuring that these vessels are owned by Nigerians. “In the past, they were getting spot contracts, but nobody can invest without a long term contract”, he stressed.
Nwapa also confirmed that the foreign firms have already given commitments to replace foreign vessels which the board had defined as Category 2 Vessels.
Some of these include Anchor Handling Tugs (AHT), Dynamic Positioning Platform Supply Vessels (DP PSV) and Line Handling Tugs (LHT).
He explained that Category 1 vessels in the board's definition include: crew supply vessels, mooring launch vessels, shallow draft vessels, Fast Supply/Intervention Vessels and security vessels.
Already, almost all the Category 1 vessels working in the oil and gas industry are owned by Nigerians and are being manufactured locally while an investor has concluded plans to begin manufacturing 40 meter vessels in Nigerdock Snake Island facility from 2013.