Reps pass bill to promote Nigerian participation in oil industry

The House of Representatives on Thursday adopted a report on a bill to pave way for the development of Nigerian content in the Nigeria oil and gas industry in the country.

The bill, which was sponsored by Tam Brisibe (PDP, Delta) makes provision for the supervision, coordination, monitoring and implementation of Nigeria content and for matters incidental to the industry. Mr. Brisibe was the chairman of the House Committee on Petroleum Resources (Upstream) until October 2008.

It was, however, sent to the committee headed by Bassey Otu (PDP, Cross River) earlier this year after second reading for further legislative action. The committee and its Gas Resources counterpart jointly prepared and presented the 49-page report which was considered at the Committee of Whole.

The House adopted a recommendation that the Nigerian independent operators should be given first consideration in the award of oil blocks, oil field licences, oil lifting licences and shipping services in all projects for which contracts are to be awarded in the country's oil and gas industry.

This is, however, with a proviso that such consideration should be subject to the fulfilment of such conditions as may be specified by the minister.

The lawmakers also adopted a recommendation that the compliance with the provisions of the Act and promotion of Nigeria content development shall be a major criterion for award of licences, permits and any other interest in bidding for oil exploration, production and development or any other operations in Nigerian oil and gas industry.

The House also adopted a recommendation that qualified Nigerians shall be given first consideration for training and employment in work programmes for which the plan was submitted and that consideration should be given first consideration to services provided from within Nigeria and to goods manufactured in Nigeria.

It agreed that from the commencement of the Act, the minimum Nigerian content in any project to be executed in Nigeria oil and gas industry should be consistent with the level set in Schedule A to the Act.

It added that all operators shall consider Nigerian content when evaluating any bid and where bids are otherwise equal, the bid containing the highest level of Nigerian content shall be selected.

Fair bidding process

The House also adopted the recommendation that all operators and alliance partners should maintain a bidding process for acquiring goods and services which shall give full and fair opportunity to Nigerian indigenous contractors and companies.

It agreed that where applicable, before carrying out any work or activity in Nigeria, the operator or other body submitting a plan shall establish in the local government area where the project is to be located, a project office where project management and procurement decision-making are to take place.

The lawmakers said that operators should train Nigerians in the areas Nigerians were not employed in oil and gas contract due to lack of requisite experience and qualification.

They agreed that all projects or contracts whose total budget exceeds $100 million shall contain a "Labour Clause" mandating the use of a minimum percentage of Nigerian labour in specific cadres as may be stipulated by the Board.