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NNPC Boss Lists Gains of Local Content

By on April 12, 2011

Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Engr Austen Oniwon,  has applauded the Nigerian content policy, noting that all investments made to develop local capacity in the nation’s oil and gas industry will yield huge dividends in the near future.

 

Oniwon who spoke at an event to mark the first anniversary of the implementation of the Nigerian Content Act in Abuja, noted that there may  be hiccups in the course of ensuring compliance with the Nigerian Content Act but that Nigeria will be better for it.

 

“We must see all these challenges as the initial necessary cost we all have to bear to actualise the lofty aspirations and develop the robust local capacity that will support us in the long run.

 

“The return on investment on the long run, when majority of the industry input will be sourced locally towards upgrading capabilities and establishing new infrastructure, will undoubtedly be most rewarding,” he said.

 

The GMD however noted that, for the Nigerian Content Act to achieve the desired result, stakeholders in the oil and gas industry must continue to develop appropriate strategies that will guarantee value for money in their operations.

 

“The industry should continue to engage the Nigerian Content Development & Monitoring Board (NCDMB) to develop procedures and processes that will facilitate in-country capacities, while sustaining operational excellence,” he added.

 

While commending the NCDMB for its achievements within its first year of operations, Oniwon also tasked industry stakeholders to work harder towards ensuring that a significant portion of the planned industry spend is expended in-country.

 

“It is in our enlightened self-interest to promote and support the on-going capacity building initiatives that will sufficiently position the local service providers and multi-nationals who set up facilities in Nigeria to enable them take advantage of these future developments,” he said.

 

Oniwon assured that NNPC would remain ever committed to the promotion of Nigerian content in all its ramifications by supporting the board to create opportunities for increased participation of Nigerians in oil and gas operations.

 

The Nigerian Content Act was signed into Law in April last year by President Goodluck Jonathan. The Act provided for the establishment of the NCDMB with the Minister of Petroleum Resources as Chairman.

 

The NCDMB is charged with the responsibility of ensuring smooth take-off and compliance with the law and more importantly, the development of in-country capacity.

source : Thisday