Niger Delta
Local Content: Five Firms Get OEM Certification
A major milestone in the implementation of the Nigerian Oil and Gas Industry Content Law 2010 was achieved last Monday in Port Harcourt, the Rivers State capital when five multinational companies were granted the first-ever permission to manufacture in-country, original equipment for the oil and gas industry.
The five companies are Endress-Hausser, ABB, Siemens, New Way, and Bonney Forge; all world-class original equipment manufacturers (OEM), who have indicated readiness to roll out by 2014, critical equipment hitherto imported into the country for use by the oil and gas industry players.
Signing a memorandum of understanding (MoU) to herald the commencement of the process designed to domicile the manufacturing facilities of the companies in Nigeria, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr Ernest Nwapa, said the quantum leap would fast track the availability, accessibility and affordability of critical equipment required in the industry, create employment opportunities for thousands of Nigerians and boost wealth creation across the value chain.
Nwapa said that the initiative, facilitated by the Shell Petroleum Development Company of Nigeria (SPDC), would avail operators in the industry opportunity to procure original equipment hitherto imported into the country, directly from the manufacturers within Nigeria, thereby saving huge foreign exchange, procurement time, among others.
He said that with the building of original equipment manufacturing plants in Nigeria, the companies’ would have strong manufacturing footprint in-country, thus enhancing the prospects of achieving 70 per cent local content in the industry in line with the law.
Nwapa noted that when completed in 2014, the plants would manufacture equipment for both local consumption and export, and commended participating companies for blazing the trail in local content development, promising to recommend them to the minister of petroleum for special windows to enjoy prescribed privileges in the industry.
Speaking, Chairman, House of Representatives Committee on Local Content, Hon Asita Honourable, expressed the conviction that Shell was actually leading the way in local content development in the industry, and stressed the determination of the National Assembly to provide the enabling climate for the development of local content that would deepen Nigerians’ participation in the industry.
He said that the National Assembly was impressed with the level of compliance with the Nigerian Content Law 2010 by some of the major companies, and stated that members were ready, more than ever before, to strengthen the legislative framework to make greater number of Nigerians benefit from the industry.
In his remarks, General Manager, Nigerian Content Development, SPDC, Mr Igo Weli, said the company was delighted to be pioneering the certification of original equipment manufacturers to establish plants in-country, and added that with the development, more Nigerians would be gainfully employed, huge foreign exchange saved for re-investment into other areas of need while facilitating improved revenue generation and wealth creation.
Weli, who represented the Managing Director, SPDC, Mutiu Sunmonu, said that the strategy was in keeping with the company’s desire to deepen its impact on the people within its areas of operation, and promised to encourage more indigenous oil and gas companies to partner more internationally-recognised genuine equipment manufacturers to invest in Nigeria.
President, Petroleum Technology Association of Nigeria (PETAN), Engr Emeka Ene, praised Shell for the initiative to facilitate the partnership between indigenous and foreign oil and gas equipment manufacturing companies, and charged other multinational firms to emulate the policy.
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