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Nigeria approves 7 Ministerial regulations on Nigerian Content

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Nigeria approves 7 Ministerial regulations on Nigerian Content

Precious ADELOLA

LAGOS-SEVEN Nigerian Content Ministerial Regulations have been approved and gazetted, making them subsidiary legislation that can be implemented by the Nigerian Content Development and Monitoring Board (NCDMB).

The Executive Secretary of the NCDMB, Engr. Simbi Kesiye Wabote announced this in Lagos on Wednesday at the colloquium organized by the Board with the Nigerian Bar Association’s Section on Business Law (NBA-SBL), with the theme “Nigerian Oil and Gas Industry Content Development (NOGICD) Act-Strides, Challenges & Opportunities.”

Executive Secretary, NCDMB, Engr. Simbi Wabote

The Executive Secretary who was represented by the Director Legal Services, Barr. Mohammed Umar stated that the Minister of State for Petroleum Resources, Chief Timipre Sylva approved the guidelines, and they became effective on 2nd April 2021.

He listed the guidelines to include Research & Development, (R & D); Training, Capacity Development; Growth of Indigenous Capacity and Nigerian Oil and Gas Industry Enforcement and Compliance Regulation.

Others include Registration of Operators and other professionals with Nigerian professional bodies, Technology Transfer and Establishment of operations in Nigeria.

Sections 36, 40, 41, 42, 47, 55 and 101 of the NOGICD Act empowers the Minister of Petroleum Resources to make regulations that will foster the development of Nigerian Content. The Board held several engagements with diverse spectrum of the oil and gas industry stakeholders before finalizing the regulations and transmitting it to the Honorable Minister for ratification.

Providing details on the Nigerian Oil and Industry Content Development Compliance and Enforcement Regulation, the Executive Secretary explained that it was intended to ensure compliance with the NOGICD Act and other Regulations and give effect to Section 68 of the Act in ensuring efficient and accountable promotion of local content in the diverse sectors of the Oil and Gas Industry in Nigeria.

He stated that the regulations had divided offenses punishable under Section 68 of the Act into two categories. The first category are the major offenses which can lead to criminal prosecution while the other offenses would be treated with administrative sanctions.

Speaking further, he stated that “As we journey towards the 70 percent Nigerian Content level target, we will continue to utilize industry platforms and fora like this to connect with our stakeholders to provide clarity on our mandate and ways to address any constraints of the industry”, assuring that the Board will continue to collaborate with the NBA Section on Business Law to drive and unleash an array of opportunities for the oil and gas industry.

He added that “In our pursuit of Nigerian Content, the Board will continue implementation of the 10-Year Strategic Roadmap; Foster relevant collaboration and strategic alliances with relevant stakeholders including sister agencies; Deepen Nigerian Content in the oil and gas industry and continue to advocate and support domiciliation of value-addition in country”.

He commended encouraged members of the bar to take advantage of various opportunities in the oil and gas industry.

Also speaking, the Chairman, Nigerian Bar Association – Section on Business Law, Barr. Ayuli Jemide appreciated the Board for the collaboration and support in engaging the association to deepen the pace of Nigerian Content implementation in Nigeria.

 

 

 

 

 

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Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

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Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

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