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(l-r) Minister for Works, Housing and Power, Mr. Babatunde fashola; Minister for Finance, Mrs. Kemi Adeosun; Minister for Trade and Investments, Okechukwu Enelama; Minister of State for Petroleum, Ibe Kachiukwu and Ag. President Yemi Osinbajo on the arrival of the Ag. President to officially open the Presidential Quarterly Businness Forum t the State House Conference Centre, Abuja. Photo by Abayomi Adeshida 11/07/2017

ExxonMobil Assures On Nigerian Content Act Compliance

By Jogn Meze”

ExxonMobil, United States of America’s(USA) oil and gas giant operating in Nigeria, has assured of its willingness to ensure compliance with   the provisions of the Local Content Act in its operations in the country.

all provisions of the Act alongside associated regulations.

He noted that the compliance with the provisions of the Nigerian Content Act is not only a legal and moral obligation for operating and servicing oil and gas companies but also a good strategy for improving profitability and sustainability of operations.

Mcgrath, who spoke to the team led by its Executive Secretary, Engineer Simbi Wabote   added that the company would also seek the Board’s guidance and assistance when faced with difficulties and exigencies of business.

He said, “The new leadership has zero tolerance for Nigerian Content violations and non-compliance issues. If we must do, we have to first discuss with NCDMB for guidance.”

The ExxonMobil helmsman promised that ExxonMobil will collaborate with the Board to achieve its mandate while assuring that “together we can transform things.”

He also pledged the company’s support for the Board’s initiatives, stating that it is open to staff exchange between the two organisations and is working to open a liaison office in the Board’s new headquarters, when completed in Yenagoa, Bayelsa State.

He also underscored the collaboration ExxonMobil had enjoyed from the NCDMB over time, which contributed to the company’s successes.

In his presentation, Engineer Simbi Wabote explained that the visit was in line with the Board’s efforts to encourage and support operating companies to introduce and execute new projects needed to sustain and grow Nigerian Content in the oil and gas industry.

He reiterated the Board’s determination to shorten the industry contracting cycle, which informed the adoption of definite timelines for statutory approvals and pioneering the development and use of Service Level Agreements (SLAs).

The first SLA was signed between the Board and the Nigerian Liquefied Natural Gas Company (NLNG) and it commits the parties to compliance with Nigerian Content Act and timely approvals of documents respectively. The model will soon be replicated with other operating companies.

Wabote also advised ExxonMobil to begin early to engage the Board on the development of its Owowo field to enhance utilization of in-country capacities.

The Executive Secretary, also, cautioned operating companies against engaging in single sourcing and selective tendering, stressing that reasons for such must be justifiable and discussed with the Board ahead of execution. He also warned companies against irregular spot hiring and utilization of vessels under the guise of emergency.

Speaking on the status of the Nigerian Content Intervention Fund (NCIF), Wabote explained that the disbursement to deserving companies was yet to start because the Board is working to perfect the governance process.

He added that the Funds would only be disbursed through a banking process, after proper risk assessments so as to create the needed confidence and trust.

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