The Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), Mr. Bayo Ojulari has described the local content law in Nigeria’s oil and gas industry as a veritable tool for national development, ThisDay reports.
In his presentation on “Service company – Operator Collaboration Models; Drawing on experience from other providences,” at the recent maiden edition of the West African International Petroleum Exhibition and Conference (WAIPEC) held in Lagos, Ojulari noted that even in the developed world, the concept of “country first” is becoming increasingly popular.
Ojulari, who called on services providers to collaborate in order to survive the current low oil price regime, added that in other countries such as Brazil, companies have leveraged on each other’s capability to deliver Floating Production Storage Offshore (FPSO) vessels “at half the price and half the time.” Ojulari revealed that Brazil currently has 43 FPSOs, while seven are under construction.
He however, listed six conditions that would make local content to work in Nigeria’s oil and gas industry.
One of the conditions, he pointed out, is stability of government policies. According to him, the stability of government policies is critical to the survival of local content, adding that the Nigerian Content Development and Monitoring Board (NCDMB) should cease to be a policeman and assume the role of an enabler.