26 June 2012

Nigerian Content Key to Oil Bid Rounds, Licences

This requirement is contained in a new partnership being forged by the officials of the Nigerian Content Development and Monitoring Board (NCDMB) and the Department of Petroleum Resources (DPR).

The two agencies set up a joint committee at a recent meeting in Lagos to design an interface model with regard to common mandates related to Nigerian content development in the industry. Among other things, the committee will develop procedure to ensure smooth applications of Sections 3 and 7 of the NOGIC Act.

These sections provide that compliance with Nigerian Content provisions, promotion of Nigerian Content development and submission of Nigerian Content Plan will constitute conditions for the award of licenses, permits and any other project in the oil and gas industry.

Another focus area of the collaboration which is expected to be formally endorsed by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, is Expatriate Quota Management, where the two agencies agreed to interface seamlessly.

This is to ensure industry compliance with Section 33 of the NOGIC Act, as well as to minimise incidents of abuse and also ensure optimal knowledge transfer to Nigerians.

The committee is also to address the increasing incidence of staff disengagement by operators and design partnership model for critical information sharing between DPR and NCDMB to facilitate effective regulation of the industry.

In his comments, the Executive Secretary, NCDMB, Mr. Ernest Nwapa, noted that the oil and gas industry could only make sustainable progress if all agencies of government connected with the sector have a common understanding.

"Once there are conflicting signals from NCDMB, DPR and NAPIMS, there will be problems. We want people from our offices to be acting on the basis of a common understanding of the laws and government policies", he added.

Director of DPR, Mr. Osten Olorunsola, commended NCDMB for the numerous achievements it had recorded within two years of its establishment, adding that Nigerian Content has been the shining light in the industry within the period.

"When we are seen working together, people will find it difficult to play one agency against the other and when we have issues, we will examine them," he said.

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