Don't Miss

Strides Energy commends FG over Nigerian content law

By BusinessNews Staff on August 15, 2014

The Nigerian Content Act has opened the floor for indigenous companies to prove their mettle on the international oil and gas scene, the Managing Director, Strides Energy and Maritime Limited, Moritz Abazie, has said.

Abazie noted that Nigerian companies, which had the capacity to carry out contracts efficiently, were marginalised before the coming of the Nigerian content policy.

He maintained that the implementation level of the policy had been quite impressive and that though the project could best be described as work in progress, the compliance level by the International Oil Companies was satisfactory.

Abazie said, “The Nigerian Content Act has been quite effective. It has been very useful; you cannot compare the situation now for local players with what it was before this policy came on stream.

“The implementation has been quite good; it could be better, though. The point remains that the policy, the law, is well cut out (because) it was long overdue. But the good news is that it has come to stay and the IOCs are implementing it.”

Explaining further, he stated, “Before now, for instance, dredging services, which is one of our areas of core competencies, was a major hit. Nigerian companies were not given a chance. But it is something that we could do. We have companies like former Willbros, Van Ord, Westminster Dredging, Dredging International and others in the sector.

“These are multi-national companies and they made it look like a humongous task that no Nigerian company could even carry out. But, with the Nigerian Content Act, the IOCs have been compelled to give Nigerian companies a chance.

“We have been given a chance and we are doing it, and very well too. The oil is being produced with us providing the access in the same area they used to. Also, in pipeline construction both on-shore and off-shore, in mechanical installation, construction, fabrication, commissioning on-shore and off-shore, Nigerian companies have shown, to a great extent, that we can do these things if given the opportunity.”

However, he noted that some areas needed to be addressed if the recorded growth was to be sustained and improved upon, even as he fingered financial constraints as a major challenge.

Abazie added, “Some companies will need financial support, in which area Nigerian financial market is yet to live up to expectations. This is important because these companies need to grow and develop into world-class companies capable of taking complex projects.

“This requires that they have the capacity, strategic assets, both physical and human resource, which are capital-intensive.

This is where the financial market comes into play. But on government’s side, the laws are there; the monitoring agencies are doing their best ensuring that the laws are implemented. The IOCs are improving in compliance and we believe that it will get better.”

Commenting on the Petroleum Industry Bill, he noted, “The bill is a consolidation of all existing oil and gas laws in the country into a single legislation, with the introduction of some dramatic changes to things like the deep-water fiscal regime.”

[Punch]

headline