A delegation from the Ghana National Petroleum Corporation (GNPC) has visited the Nigerian Content Development and Monitoring Board (NCDMB) on a knowledge sharing and local content benchmarking study.
The visit is hinged on the need to deepen their understanding of NCDMB local content development practices in the areas of policy frameworks and implementation strategies, among other things.
The delegation which was led by GNPC Director of Corporate Affairs, Mr. Eric Pwadura is on week tour of the NCDMB corporate headquarters, Yenagoa, Bayelsa State and was received NCDMB Executive Secretary, Engr. Felix Omatsola Ogbe.
A statement issued by NCDMB and made available to Maritime Bits quoted Ogbe welcoming the delegation into his office and saying that Africa has evolved over the last three to four decades.
According to Ogbe expressing delight at Africa growing its hydrocarbon resources to over 120 billion barrels of crude oil reserves and 800 trillion standard cubic feet of gas, which constitute over 10 per cent of hydrocarbon resources globally.
The NCDMB helmsman pointed out that as a hydrocarbon resource continent, it is in the national interest of the producing countries to prioritise local content development, paying particular attention to the necessity of reversing the trend of dependency on foreign technology for exploration, field development and production activities. The countries have to look inward for the capabilities to exploit their resources, he said.
Ogbe who was represented by NCDMB Director, Corporate Services, Dr. Abdulmalik Halilu explained the potential of “crude oil as commodity for economic transformation.”
He noted that Africa has the advantage of a huge youth population, that is, the labour force, which should be made to acquire the requisite skills for industry operations.
He recalled that Nigeria’s local content journey began with the Local Content Division in the defunct Nigerian National Petroleum Corporation (NNPC), managing local content issues in the oil and gas industry through mere policy directives, and transformed into the NCDMB we have today.
Said he: “We have evolved from a policy to an institution. NCDMB is the sole agency responsible for local content in Nigeria”.
He disclosed that NCDMB Board introduced the Nigerian Content 10-Year Strategic Roadmap which comprises five strategic pillars, namely, Technical Capability Development, Compliance and Enforcement, Enabling Business Environment, Organisational Capability, and Sectoral and Regional Markets, as well as five enablers, namely, Funding, Regulatory Environment, Collaboration and Stakeholder Engagement, and Research and Development.
According to the statement, among strategies for capacity building, he listed the Nigerian Content Intervention Fund NCI, Fund, which it operates through development finance institutions like the Bank of Industry BOI, and Nigerian Export-Import Bank NEXIM, to provide single digit loans to service companies.
Continuing, he said: “What we have done is to create that access to make the local service companies competitive. The facility has enabled indigenous companies to acquire critical assets and facilities, including marine vessels operating in Nigeria.”
He pointed out that when capacities are built, they must be utilised, hence NCDMB incentivises investments through a policy of first consideration that favours indigenous companies with demonstrable capabilities.
He enjoined African countries seeking to broaden indigenous participation in the oil and gas industry that “local content does not compromise standards…it does not mean you have African spec, European spec. It is one global spec.”
While focusing on a presentation on the Nigerian Content 10-Year Strategic Roadmap, NCDMB Assistant Manager, Strategy and Transformational Projects, Dr. Zuwairat Asekome enumerated highlights of the journey of the Board, beginning with the enactment of the Nigerian Oil and Gas Industry Content Development NOGICD, Act, 2010, through successive stages of growth in the implementation of local content policy and monitoring to the present, when it has successfully raised in-country value addition in the industry to 61 per cent.
Mr. Eric Pwadura in his response expressed profound appreciation for the privilege to participate in a programme for knowledge sharing at the NCDMB just as he added: “Even though we have the legislation guiding local content, we have not had the benefit of having a robust local content environment like you have.”
Continuing, Pwadura said: “If we take our organisation (Ghana National Petroleum Corporation) for example, what we have is a local content unit. That is currently the structure that we have. We want to have a deeper understanding of your local content development programme.”
NCDMB Director, Monitoring and Evaluation, Mr. Esueme Dan Kikile noted the high interest of African oil producing countries in local content.
According to Kikile, it is important that we work together. We are happy to continue to share our experience in oil and gas, share our experience in local content.
NCDMB General Manager, Corporate Communications Division (CCD), Dr. Obinna Ezeobi in an opening address, explained that “Nigeria and Ghana have had a long history of collaboration in the energy sector”.
He pointed out that NCDMB and the GNPC have had fruitful interactions at international conferences.
According to him, NCDMB had mentored several African organsations on local content. NCDMB has a Memorandum of Understanding (MoU) with the Petroleum Commission Ghana, the National Content Monitoring Committee of Senegal ST-CNSCL as well as partnerships with related agencies in Mozambique, Angolan, and Namibia.
Other delegates from GNPC were Adviser, General Services, Mrs. Jennifer Boateng; Principal, Supply Chain and Local Content Development Officer, Mr. Augustine Bayivella, and the Manager, Supply Chain and Local Content Development, Mr. Seidu Salim Braimah.
