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Bayelsa Demands Enhanced Patronage For Indigenous Service Firms

…Local Firms Have Full Industry Capacity -NCDMB


Deputy Governor of Bayelsa State, Rear Admiral Gboribiogha John Jonah, has charged operating and service companies not to use the plummeting oil prices as an excuse to evade compliance with provisions of the Nigerian Content Act.

The call corroborated the declaration by federal government that the indigenous oil service firms have the capacity to deliver all serviced required by the operators in the industry.

The Deputy Governor stressed that the oil and gas value chain shoukd benefit the grass-root population and stressed the state’s insistence that oil and gas companies must open offices at their areas of operation in accordance with the provisions of the Nigerian Content Act.

Other speakers that supported the Admiral Jonah advised regulators in the industry to cut down the long contracting cycle.

Stakeholders also demanded enhanced patronage for Nigerian service companies which according to them result in idle rigs owned by Nigerian service companies. They also stressed the need to increase access to the Nigerian Content Development Fund.

Meanwhile, government has declared that the oil service firms in the country have the full capacity for industry jobs, saying execution of Nigerian industry jobs abroad has stopped.

Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Mr. Denzil Kentebe, stated the capacity of the local firms for industry job execution has helped end use of Nigerian fund to patronise foreign countries.

However, other industry sources counter that the foreign firms still take jobs in the country and repatriate their revenues to home economies, faulting the board’s weakness in enforcing full implementation of articles of the Nigerian Content Act of 2010.

Mr. Denzil Kentebe who spoke in Yenegoa, Bayelsa State attributed the achievement to the increased capacity of indigenous oil and gas companies to deliver high-end services in the industry.

According to him, Nigerian petroleum industry has transformed from a sector that depended on foreign inputs to one that develops and utilises local human and material resources.

“Now Nigerian indigenous companies are contributing close to 10 per cent of the country’s production. With recent divestments and deliberate local content requirements, indigenous producers are set to achieve the target of 30 per cent contribution to production output by 2020.”

He said government would galvanise the industry towards local construction, repairs and maintenance of marine vessels and rigs. He also announced that Nigerian built and Nigerian owned vessels would be given first consideration in tenders from 2016.

“Our intervention will see to the development of a thriving ship-building industry with all the benefits in job creation, retention of revenue and technology acquisition,” he said.

He added that an integration yard for floating, production, storage and offloading (FPSO) vessels was being constructed at the Lagos Deep Water and Logistics Base (LADOL), noting that the 300 million dollars investment would be completed in early 2017.

He stressed that the investment was coming after over 50 years of oil discovery in Nigeria and over 14 Floating, Production, Storage and Offloading (FPSOs) had been built for the Nigerian oil and gas industry in foreign yards.

The FPSO yard, he said, would ensure that all future FPSO integration jobs would be carried out in Nigeria, and employ over 100,000 people.

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