The Nigerian National Petroleum Corporation (NNPC) and the Nigerian Content Development and Monitoring Board (NCDMB) have committed to growing local content in the oil and gas Industry from the current 40 percent to 70 percent by 2027.
NNPC Group Managing Director, Dr. Maikanti Baru, made this commitment while delivering a keynote address at the 8th Practical Nigerian Content Conference in Yenogoa. He said strategies for implementing the NCDMB Local Content development includes closing human capacity gaps, skills acquisition and assets ownership by indigenous companies, among others.
The GMD said that as early as 2005, despite almost 50 years of a vibrant national oil industry experience, NNPC was concerned at the low level of Nigerian Content in the country and thus called for a fresh approach to domesticating Oil and Gas Industry spend through the establishment of the Nigeria Content Division (NCD). The aim he said, was to identify and guide the implementation of key national content initiatives, including promoting local manufacturing of steel plates & pipes and developing engineering design expertise in the country.
The NNPC GMD listed the achievements recorded in the development of Local Content to include ramping up pipe mills from 100,000MT/annum to 420,000MT/annum, representing 40 percent of industry demand and the sustainable engagement of indigenous service companies and contractors to carry out NPDC’s operations and maintenance activities.
He disclosed that the NNPC was actively collaborating with NCDMB to drive indigenous participation through the engagement of community resources, human resources and capital in the execution of Joint Venture projects and maintenance activities.
Dr. Baru stated that in a bid to stimulate the participation of indigenous companies in the Oil and Gas Industry, NNPC has continuously worked with NCDMB to align the Nigerian Petroleum Exchange (NipeX) portal and the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGICJQS) portal in order to adequately capture the capacity of local companies to enable them take advantage of the available opportunities.
He revealed that as at today, local companies are now active participants in the bidding process for the crude oil term contracts and the Direct Sale of Crude Oil and Direct Purchase of Petroleum Products (DSDP) contracts.
“Hitherto, this is an activity that was exclusively reserved for foreign companies”, he stated.
He said in order to directly intervene in local participation, NNPC established the NNPC Oil Field Services Limited (NOFS) to create sufficient capacity for direct involvement in the provision of high-end value-added services to the industry.