Oil & Gas
THE Nigerian Content Development and Monitoring Board (NCDMB) has approved
four firms for the supply of Barites required for any drilling project or contract in the
Nigerian oil and gas industry.
The four Barites processors are Nishan Industries Limited located in Port Harcourt,
Rivers State; Delta Prospectors Limited in Lafia, Nasarawa State; Ana Industries
Limited in Port Harcourt, Rivers State, and Baker Hughes Company Limited at Onne,
Port, Rivers State.
The NCDMB released the list in its “Public Notice on Procurement of Barites for Oil
and Gas Projects,” signed by the Executive Secretary, Engr. Simbi Kesiye Wabote
and dated 27 th of May 2021.
According to the Board, all project promoters in the Nigerian oil and gas industry are
to ensure that Barites required for any project shall be procured only from the
approved Nigerian Barites processing companies with Category A Nigerian Content
Equipment Certificate (NCEC).
The Board listed 10 other companies that “have also been identified and shall be
upgraded to Category A NCEC, as soon as they meet the requirements of the
Guideline for the Utilization of Locally Produced Barite and Drilling Fluids in Nigerian
Oil and Gas Industry.”
It further informed operators, contractors, service companies and other stakeholders
of the availability of in-country processed barites that meet the specifications of the
oil and gas industry.
It added that NCDMB is “mandated to develop the capacity of the local supply chain
through Direct Capacity Development Interventions or support to investors to set up
facilities and has a key responsibility to ensure that these investors are protected in
line with the intents of the Nigerian Oil and Gas Industry Content Development
(NOGICD) Act.
The policy intervention by the Board to encourage such investments is to mandate
stakeholders to prioritize the utilization of manufacturing facilities in the procurement
of Barites, the public notice added.
It stated that the Board would be expecting quarterly reports from operating
companies confirming the procurement of Barites and other related chemicals
through Purchase Orders (PO) given to these companies.
It warned that consequences of violating the Public Notice shall include Refusal of
the Board to issue Certificate of Authorization to the operator, project promoter and
contractor, Refusal of the Board to participate in the Operator`s Tender or issuance
of Nigerian Content Compliance Certificate (NCCC) and Denial of the issuance of
Nigerian Content Equipment Certificate for the production and supply of locally
produced Barite and Drilling Fluids in the Nigerian Oil and Gas Industry for a period
to be determined by the Board.
The Board could also initiate the penal sanctions provided in section 68 of the
NOGICD Act, invoke administrative sanctions in line with section 70 (i) and (p) of the
NOGICD Act or apply other penalties deemed fit in line with the provisions and
aspirations of the NOGICD Act.
