The Federal Government has resolved to compel multinational oil companies in the country to involve indigenous companies in their operations. This is as it planned restructuring of the oil and gas sector to guarantee optimal participation of indigenous companies in the industry owing to the poor implementation of the local content law.
This was made known by the Executive Secretary of the Nigerian Local Content Development and Monitoring Board (NLCDMB), Ernest Nwapa, when he commissioned some oil exploration equipment acquired by an indigenous oil servicing company, Fenog Nigeria Limited (FNL), in Warri, Delta State.
The new oil facilities inaugurated by Nwapa for Fenog comprises onshore/swamp lay barge, three service vessels, PD350 ton HDD rig, HDD water borehole and soil sample collection rig as well as phase 1 of rigid pavement access road in Ugbuwangue community, Warri South Local Government Area of Delta State.
Commending Fenog for achieving the “giant strides”, Nwapa said, “Today FENOG is moving onshore with their technology. I also like the way Fenog is growing partnership with other oil companies. This is another way of building capacity.
“It is investment like this that grows the economy. It is investment like this that we have calculated over $5 billion for the short time this industry has started. Everywhere Nigerian companies are investing additional capital in bringing in new equipment used in developing the industry.
“We believe that the thing we have come here to do today will give FENOG sufficient capacity to participate in the oil and gas industry. I assure Fenog that we are already doing so in restructuring the operations of the oil and gas industry in such a way that the work will start flowing. And when work start flowing; the Nigeria local content law will ensure that companies must have plans for the indigenes.
“The companies in Nigeria that are investing a lot of money in the industry are going through a lot of threats but one thing we must be happy about is that foreign industries have known that the only we can sustain the oil industry in this country is to allow Nigerians companies participate in the industry,” he added.
Responding, Fenog’s Executive Director, Matthew Tolangha, and General Manager, Chukwudi Nwakwe, lamented the exclusion of Fenog in the award of major projects by the oil multinationals despite huge investment of Fenog in capacity building.
The company further regretted that major equipment acquired to boost the operations of the oil and gas industry were lying idle in its premises.
While appreciating the federal government for encouraging and supporting indigenous participation in the oil industry, it expressed concern that its expectations had not been met by the authorities and the oil majors.
The company consequently pleaded with the authorities to ensure that the Trans Niger Pipeline Loopline (TNPL) project initiated by Shell Petroleum Development Company (SPDC) was awarded to Fenog.
In the same vein, the management of the oil servicing company regretted that its derrick lay barge, Akpovweoghene, had not been engaged four years after it was acquired and pleaded that it should be engaged for Escravos Export System Project (EESP) of Chevron Nigeria Limited (CNL).
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