Reps to probe local content compliance by foreign oil companies

By Umar Muhammad Puma

The House of Representatives has resolved to investigate the contracting of vessels by International Oil and Gas companies, to determine whether the processes complied with the provisions of the Nigerian Oil and Gas Industry Content Development Act of 2010.
The resolution was sequel to a motion sponsred by Rep. Daniel Reyenieju (Delta-PDP), who explained that the Nigerian Oil and Gas. Industry Content Development Act (NOGICD), 2010 was enacted to ensuremeasurable growth of Nigerian content in the oil and gas exploitation processes.
He added that section 12 of the Act provides that first consideration be given to Nigerian companies in the evaluation of bids for goods and services required for projects by oil and gas companies.
“Section 15 of the Act requires all Operators and Alliance Partners to give full and fair opportunities to indigenous contractors and companies in the award of contracts.’’
He expressed concern that indigenous companies had spent money to
procure vessels which were now lying fallow at the Ports as the IOCs and multi-national companies refused to engage their services.
He further expressed worry that the international oil companies would rather engage the services of foreign vessels that were not flying the Nigerian flag and sometimes working through Nigerian companies as decoy.
The lawmaker therefore called for an end to the flagrant violation of the Nigerian Oil and Gas Industry Content Development Act 2010 by International Oil and Gas Companies.
The motion was unanimously adopted by members when it was put to a voice vote by the Speaker, Mr Yakubu Dogara.
The House therefore mandated its Committee on Local Content to ensure the investigation goes back to 2010 and report back its findings within four weeks for further legislative.