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Local Content Development
Local Content development is an initiative on the part of the Nigerian Government to help develop local capacity building in the Nigerian Oil & Gas Industry and to enable Nigerians participate actively.
It can be seen as the utilization of the Nigerian human and material resources in the exploitation and exploration of the Nigerian hydrocarbon resources. The Oil and Gas industry worldwide plays a dominant role in technology development advancement of the use of local inputs as a way of reducing production costs and improvement of economic base of the respective oil producing countries.
In Nigeria, the Oil and Gas sector plays a very dominant role to the economy in that 90 percent of the total revenue is from Oil and Gas production while over 90 percent of the nation foreign exchange earnings comes from the sales of crude oil.
Therefore a situation where less than 5 percent of the total annual budget of about USD$S.S billion in the industry is very worrisome to both the Federal Government and citizenry.
Nigerians have very little share of the oil and gas business, local participation is very low and in order to arrest and dissuade capital flight, a local content policy is being developed. The objectives of the local the content development is to significantly increase the contribution of the expenditures in the upstream sector to the Gross Domestic product over a defined period of time.
It is hopeful that local content development would ensure that the quantum or percentage of locally produced materials, personnel, goods and services rendered to the industry are increased, thereby generating more employment and economic empowerment.
The Nigerian Government is actively promoting the internalization of inputs in the upstream sector. The objectives of the Local content policy are to promote a framework that guarantees active local participation without compromising standards; to promote value adding in Nigeria through utilization of local raw materials and human resources; and to promote steady, measurable and sustainable growth of Nigerian content.
Both foreign and Nigerian investors, either solely or in partnership, have the opportunity to participate actively and effectively in all the facets of the industry and not just as suppliers of peripheral services, particularly as E & P operations expand towards the deep offshore and the Gulf of Guinea.
Legal, regulatory and institutional structures and mechanisms to drive the actualization of the local content programs are being put in place.
OUR RECENT PROJECTS
Oilbath has made a significant inroad into energy businesses with its portfolio of landmark transactions and trading. Listed below are few of the businesses we have been involved in recently.
| COASTAL CUSTOMER Mobil Producing –Eket Shell – Port Harcourt Julius Berger ASCON Oil Company Total Nig. PLC OANDO Plc |
LAND CUSTOMERS Flour Mills Bagco Super Sack British American Tobacco Unilever PLC |