BOGL groans over NNPC’s preference for foreign firms in offshore operations

After five years of signing the country’s Content Development Act into law, the Nigerian National Petroleum Corporation (NNPC) has continued to recommend Foreign Service firms to International Oil Companies (IOCs) for most offshore operations at the expense of their indigenous counterparts.

The trend which clearly negates the Local content law has continued to deprive indigenous firms of business deals, as well as tame the growth of local capacity in the oil and gas sector.

One of such indigenous companies; Broron Oil & Gas Limited (BBOG) says there has been a whole lot of lapses on the part of the NNPC as effort to implement the local content law in offshore activities of the oil and gas sector has remained below par.

The young but innovative indigenous firm which specialises in providing a broad spectrum of quality, cost-effective, innovative and cutting-edge subsea and marine services say it has become imperative for a new approach to the implementation of the local content law.

\“Since the local content act was passed into law, most indigenous firms in the sector are yet to benefit from it,” Henry Ojogho, executive vice chairman, Broron Oil & Gas Limited (BOGL) said, during a recent media parley in his firm’s corporate headquarters in Lagos

Ojogho, whose firm currently own three vessels – but all dormant as a result of no jobs to execute – claims that over 1,000 foreign vessels are presently operating in the country’s water executing projects that could have been assigned to indigenous operators.

According to him, the success of the local content law clearly resides on the ability of the NNPC to encourage local operators to become visible in the sector.

On possible steps to correct some of the deficiencies that have plagued the sector in recent time, Ojogho advised the new administration to effect a transparent bidding system that encourages firms to abide with due process when bidding for a contract.

“Specifically, the National Petroleum Investment and Management Service (NAPIMS) need to be transparent in its bidding process by creating a level playing field for all operators in the sector,” he said.

The Broron boss further advised that local firms with required assets and capacity to execute projects should be given preference during bidding process, pointing out that this is the reason behind the law.

The local content act was signed into law by former President Goodluck Jonathan in 2010. The law was aimed at increasing indigenous participation in the oil and gas industry, build local capacity and competencies, as well as create linkages to other sectors of the national economy.

ODINAKA MBONU