The Managing Director of Lagos Deep Offshore Logistics Base (LADOL), Dr. Amy Jadesimi has called for the full implementation of the Nigerian Oil and Gas Industry Content Act of 2010, better known as Nigerian Content Act, saying that indigenous players have already demonstrated the capacity to execute challenging jobs.
Jadesimi told THISDAY at a recent interview that with the completion of the integration facility for the Floating Production Storage Offshore (FPSO) vessel for Total’s Egina deepwater field, LADOL has passed the test for the Nigerian Content Law.
She noted that the integration facility actually encountered a lot of resistance from many stakeholders who did not believe that it would be possible to build and operate such facility in Nigeria.
“Remember that from the Nigerian Content perspective, this facility is a game changer and is on course to create about 50,000 jobs directly and indirectly. So, it changes the way oil and gas business is done in Nigeria. It means that what the industry has been fabricating outside Nigeria will now be fabricated inside Nigeria,” she said.
“The local content law was instrumental. Now, the law has enabled us to build this facility. What do we need to be done going forward? We need to make sure that our capacity is utilised and that more capacity is built. So, now that the law has been tested by the project in LADOL and it has passed that test, I think the next thing is to go to full implementation,” she added.
“Full implementation means two things. It means we, Nigerians have to continue investing; we still have lots of work to do. Even as LADOL – for us to have more investments; for us to integrate, we need more fabrication – we need Aveon, Nigerdock , Dorman Long– all these other yards. We need them to do more fabrication; we need them to build more capacity so that all our investments in all the heavy cranes can be realised. There is no point having integration yard and there is nothing to integrate. So, what we are advocating for now is full implementation of the law. We have been tested; we passed the test; the facility has been built,” she explained.
She called for effective collaboration between the indigenous players to build capacity towards making sure that local content hits 70 per cent – 90 per cent.
According to her, the indigenous operators also need the support of the federal government and the International Oil Companies (IOCs) to help in building capacity by committing to use made-in-Nigeria business model.
She stressed that there is no point building capacity, while the government and the oil companies still allow people to take jobs abroad.
Speaking on the steps to be taken to check the paucity of jobs being experienced by indigenous yards, Jadesimi argued that the federal government should insist that jobs must be executed in Nigeria.
“Government has to set the tone and that tone has to be ‘ guys, you guys are the private sector; you need to work together to build capacity and you need to make sure that if you get a job, you will meet the quality and schedule and pricing standard of that job. If you don’t meet that standard, you are going to be punished’. The government should also tell the international oil companies that the law says that they must use local capacity and they must use local capacity. So, the government can be the glue that holds everyone together and holds everyone accountable,” she explained.