THE Federal Government’s drive to involve local oil firms in the oil and gas sector is being thwarted by some oil majors that are bent on maintaining the status quo and denying indigenous companies their place as enshrined in the Nigerian Local Content Law, The Nation has gathered.
The Act, which became operational in 2010, gave Nigerian oil companies the leverage to be given first consideration in the award of contracts in virtually every area in the sector, including oil blocks, oil field licences, oil lifting licences, in addition to being considered for award of contracts in all projects for which they have demonstrable competences and proven capability in the oil and gas industry
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The contribution of indigenous firms to oil and gas production and reserves in Nigeria through marginal fields awarded to them in the first licensing round has grown in recent times, adding pressure on the government to expedite action on the next bid round.
More indigenous oil firms are seen as positioned to boost Nigeria’s stagnant production and reserves, as the next marginal field bid round is eagerly anticipated to come on stream sooner than later.
“Without necessarily ranging them, I can count five indigenous oil companies that are poised to grow in the upstream sector. They include Energia, Platform, Seplat, Niger Delta Resources, Waltersmith, and Emerald,” Wumi Iledare, president, International Association for Energy Economics, told BusinessDay
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