NNPC pledges commitment to local content

Stories by Sola Oluwadare, Lagos - Updated: Tuesday 03-11-2009

Oil platformThe Nigeria National Petroleum Corporation (NNPC) has vowed a commitment to the actualisation of the local content policy of the Federal Government, just as the corporation disclosed that the country had recorded over 400 per cent in local capacity utilisation in the oil and gas industry in less than five years since the policy was introduced.

he Group Managing Director of NNPC, Dr. Mohammed Sanusi Barkindo, said in Abuja recently, at the 2009 Conference and Exhibition of the Nigerian Local Content Consultative Forum, (NLCF), that since the inception of the policy, engineering man-hours performance in Nigeria had increased from mere 250,000 man hours (mhrs) to over 3,500,000 man hours (mhrs) per annum across over twenty international and local engineering companies in Nigeria.

He also said over $50 million was invested between 2006 and 2008 in this regard, saying the NLCF was an effective platform for collaboration of stakeholders to develop strategies for effective implementation and appraisal of performance of the policy regime.

According to him, the in-country fabrication capacity increased from 12,000 tons to over 100,000 tons per annum performed globally certified Nigerian fabrication yards, some of which are equipped to carry out high and coded vessel fabrication, stressing that the result was that over $140 million was invested in yard upgrades between 2006 and 2008.

He noted that the NNPC would continue to champion the campaign of indigenous involvement through its operations. “Evidently, you have done a good job of it with a growth of over 400 per cent in less than five years of this programme. We in NNPC fully embrace our responsibility as the national oil company and will continue to lead this important effort to promote indigenous participation through our operations and those of our joint venture partners and contractors.” he averred.

The NNPC boss maintained that engineers, geoscientists and welders were trained under the Nigerian Content Human Capital Development Programme in collaboration with the Petroleum Technology Development Fund (PTDF).

He said over $20 million was spent by the NNPC and its partners on training and attachments in this regard between 2006 and last year.

He described the Federal Government’s content policy, which was rooted on the concept of domiciliation as a global trend adopted by both established and emerging national oil companies to grow local capacity and drive employment, thereby increasing indigenous participation.

“As you know, NNPC is undergoing a major transformation. We envision these three distinct steps; namely, surviving the short term and securing our right to play in them long run, consolidating critical capabilities and skills, and leveraging portfolio and alliances for major international play,” he stated.