Oil & Gas
NCDMB decries misrepresentation of Wabote’s goodwill message at 2023 NAPE Conference
…says NCDMB, as a regulatory agency, does not select contractors for the operators
By Victoria Frances
The Nigerian Content Development Monitoring Board, NCDMB, has described as inaccurate the media report credited to Simbi Wabote, executive secretary, that international oil companies, IOCs, especially Shell, were no longer interested in investing in the country, describing it as a failure to understand the current context and nuances of the Nigerian oil and gas industry.
The report, according to a statement by the NCDMB, “distorted Wabote’s privileged comments, and reached an imaginary conclusion that suggests that Shell Petroleum Development Company (SPDC) has withdrawn from the Memorandum of Understanding (MoU) it signed with the NCDMB, the Nigerian National Petroleum Company (NNPC) Limited and four other international oil companies (IOCs) towards shortening the contracting cycle, ramping up Nigeria’s crude oil production and ensuring compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
“As a professional and rigorous institution with a commitment to the sharing of accurate information, it is necessary that we clarify the real facts and substance of his comments at the event in the interest of stakeholders, including investors,” said the statement by Esueme Dan Kikile, manager, Corporate Communications, NCDMB, and made available to Realnews on Wednesday, November 22.
According to it, “Contrary to the impression in the report, the ES did not participate in any panel discussion at the Conference; his comments were captured in his Goodwill Message, copies of which were shared at the event. In it, he touched on various issues critical to the good health of the local and global energy sector.” His comments, essentially was a rallying cry to the nation’s petroleum explorationists, it said.
The full statement reads:
“It has come to our attention that some media reports on comments made by the Executive Secretary of Simbi Kesiye Wabote, Nigerian Content Development and Monitoring Board, NCDMB, at the recent 41st Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists, NAPE, in Lagos, contained significant misrepresentations and distortions.
“The report distorted Engr. Wabote’s privileged comments, and reached an imaginary conclusion that suggests that Shell Petroleum Development Company (SPDC) has withdrawn from the Memorandum of Understanding (MoU) it signed with the NCDMB, the Nigerian National Petroleum Company (NNPC) Limited and four other international oil companies (IOCs) towards shortening the contracting cycle, ramping up Nigeria’s crude oil production and ensuring compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
“As a professional and rigorous institution with a commitment to the sharing of accurate information, it is necessary that we clarify the real facts and substance of his comments at the event in the interest of stakeholders, including investors.
“Contrary to the impression in the report, the ES did not participate in any panel discussion at the Conference; his comments were captured in his Goodwill Message, copies of which were shared at the event. In it, he touched on various issues critical to the good health of the local and global energy sector. His comments, essentially a rallying cry to the nation’s petroleum explorationists, included:
“Addressing the Energy Trilemma – achieving an appropriate balance between energy security, sustainability, and affordability.
- The central role of Nigerian petroleum explorationists in addressing key questions in future energy dynamics.
- The continued relevance of the oil and gas industry as a key pillar of global energy powering industrial and economic developments across the world.
- The urgent need for the nation to increase the component of renewable energy in its energy mix and the central role of petroleum explorationists in achieving this imperative.
- How the resurgence in the issuance of licenses for exploration and development of oil and gas in the North Sea is affecting global energy dynamics and why Nigeria needs to work harder to remain relevant.
“Second, the statement in the report – “the IOCs, especially Shell, were no longer interested in investing in the country” attributed to Engr. Wabote is inaccurate. It is, at best, a failure to understand the current context and nuances of the Nigerian oil and gas industry which Engr. Wabote tried to explain in his Goodwill Message. The existence of challenges does not translate to the bleak scenario painted in the report which certainly does not represent the views of NCDMB or its leadership. In fact, the tone of the ES message was very positive in discussing the challenges.
“The NCDMB is constantly having frank discussions with stakeholders, including the IOCs in a dynamic and often challenging sector. Protecting Nigeria’s best interests is our constant focus as we try to balance the imperatives of keeping the sector investor-friendly with the current and future priorities of the country.
“The NCDMB equally seizes the opportunity to refute the comments attributed to the Executive Vice President (Upstream), NNPC, Mrs. Oritsemeyiwa Eyesan, to the effect that the implementation of the NOGICD Act has led to the return of portfolio managers or companies, rather than the development of local competences and capabilities.
“NCDMB, as a regulatory agency does not select contractors for the operators. The role of NCDMB in the tender management process is to ensure that the operators and their Joint Venture (JV) partners comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act in selecting contractors for their projects and activities. It is therefore inappropriate to suggest that the implementation of the NOGICD Act has led to the return of portfolio managers and companies.
“The phenomenal improvement in Nigerian Content growth from 5 percent before the NOGICD Act was enacted in April 2010 to 54 percent by the end of 2022, which is acknowledged locally and internationally is clear evidence that Nigerian Content has created visible and tangential capacities and capabilities and not portfolio companies.
“The NCDMB’s implementation tools and procedures are designed to approve only companies with demonstrable capacities and capabilities and never portfolio companies.
“We believe that ample and verifiable evidence and information abound regarding the giant strides made by Nigerian companies on the production and service sides of the oil and gas industry since the enactment of the NOGICD Act, and there is no such thing as portfolio companies arising from Nigerian Content implementation, contrary to what the EVP was quoted to have alluded to.”
- Nov. 22, 2023 @ 2:30 GMT |
