BUSI­NESS Min­is­ter: Why we favour lo­cal firms in crude oil lift­ing

Daily Trust - - NEWS - By Daniel Adugbo

The Min­is­ter of Petroleum Re­sources Mrs. Diezani AlisonMadueke said the re­cent award of term con­tracts for crude lift­ing, ma­jorly to indige­nous com­pa­nies, is part of the federal govern­ment’s ob­jec­tive to en­cour­age lo­cal par­tic­i­pa­tion in the oil and gas in­dus­try.

Speak­ing to jour­nal­ists over the weekend in Abuja, Mrs. AlisonMadueke, who is also the chair­man of the NNPC Board, said over 60 per­cent of the 2014 to 2015 an­nual term con­tracts for the lift­ing of Nigeria’s crude oil were awarded to lo­cal firms af­ter a painstak­ing pre­qual­i­fi­ca­tion process.

The min­is­ter said the bal­ance was shared among some in­ter­na­tional trad­ing com­pa­nies, re­finer­ies and to some coun­tries with bi­lat­eral trade agree­ments with Nigeria.

“When we un­veiled the Nige­rian con­tent law a few years back, the over­rid­ing prin­ci­ple was to grow indige­nous ca­pac­ity in an ag­gres­sive man­ner and I am happy to re­port that to­day, in the oil and gas sec­tor, Nige­rian con­tent has been placed on the path of ir­re­versible progress,” the min­is­ter said. Mrs. Ali­son-Madueke noted that the award to lo­cal play­ers is in line with the as­pi­ra­tion of Pres­i­dent Good­luck Jonathan for ef­fec­tive trans­for­ma­tion of the petroleum in­dus­try.

She said the ad­vent of the Nige­rian con­tent law has en­cour­aged indige­nous in­vest­ment in crit­i­cal in­fra­struc­ture.

“We have seen ro­bust indige­nous in­vest­ments in Ma­rine ves­sels of var­i­ous cat­e­gories and wholly owned Nige­rian ves­sels have in­creased as­tro­nom­i­cally through the years. These ves­sels are the Cat­e­gory one and Cat­e­gory two types. In­vest­ments in re­cep­tion, stor­age and dis­tri­bu­tion fa­cil­i­ties such as jet­ties, de­pots, trucks, ves­sels and mod­ern re­tail out­lets have more than dou­bled over the past few years, and this has helped to in­crease the na­tion’s suf­fi­ciency level in petrol,” the min­is­ter said.

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