- Local Content Compliance in Oil Sector Hits 40%
Local content compliance in Nigeria’s oil and gas sector increased from five per cent in 2015 to about 40 per cent so far this year, the Federal Government announced on Wednesday.
This is coming as the United States of America has pledged to support Nigeria with newer technologies in oil and gas production, as well help deepen the country’s skills in the sector.
In its drive to enhance local content, the Federal Government, through the Nigerian Content Development and Monitoring Board, has often stated that it will continue to promote the development of in-country capacities for the industrialisation of the nation through the implementation of the Nigerian Content Act.
Speaking at a meeting with the US Secretary of Energy, Mr. Rick Perry, on the sidelines of the 24th Africa Oil Week in Cape Town, South Africa, Nigeria’s Minister of State for Petroleum Resources, Ibe Kachikwu, highlighted the local content growth which the oil and gas sector in Nigeria had experienced.
According to Kachikwu, the local content growth in the oil and gas sector has moved from five per cent at the inception of the current administration to about 40 per cent currently.
On issues relating to infrastructural development in the sector, the minister noted that a comprehensive map being developed by the Federal Ministry of Petroleum Resources would be launched in December this year.
Kachikwu, who disclosed this in a statement issued by the spokesperson for the ministry, Mr. Idang Alibi, told the US energy secretary that the Federal Government played a vital role in instituting the Joint Venture cash call payment agreement, ensuring adherence to due process, promoting accountability, encouraging sanctity of contracts and reviewing the fiscal policy to provide incentives for investments in the sector.
He also stated that plans were in place to reduce government’s role in the industry so as to increase private sector participation.
In his remarks, Perry told Kachikwu that the US would be willing to assist Nigeria with access to newer technologies and skill set training to deepen its participation and production in oil and gas.
He said the key message and thrust of the US administration was to be a strategic partner with Nigeria, adding that his country would continue to encourage companies to invest in Nigeria’s oil sector.
