The Nigerian Content Development & Monitoring Board (NCDMB) has directed that all downstream operators in the Nigerian oil and gas sector must ensure that they are in compliance with the provisions of the Nigerian Oil and Gas Content Development Act, (NOGICD).
This directive was given recently in Yenagoa, Bayelsa State by the Executive Secretary of the Board, Engr. Ernest Nwapa,at a meeting with chief executives of downstream companies. He explained that contrary to some widely held belief that the Act was intended to regulate upstream operations only, it is meant to cover all sectors of the oil industry including the downstream.
Even as he stated that the Nigeria Content Regulations would be issued soon, Nwapa says the engagement with downstream operators became necessary so that their views would be taken into account.
In a statement issued by the Board’s Public Affairs Officer, Obinna Ezeobi, the Executive Secretary says “Such 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 dispelled the misconception in some quarters that 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.
He said the successful implementation of the Content Act requires strict compliance from indigenous operators as the focus of the Act goes beyond the international operating companies and their service counterparts.
Pointing out specific parts of the Nigerian Content Act, Nwapa said the NCDMB expects the operators to prove that they engage Nigerian service providers in the acquisition and maintenance of their assets comply with the Cabotage Act in their use of marine vessels and meet the training and employment aspirations enshrined in the Act.
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