Local involvement in harnessing crude oil and natural gas in Nigeria

Abstract

Vast financial investments have been made in the upstream crude-oil and natural-gas (CONG) sector in Nigeria, but have not resulted in significant benefits for most Nigerians. The associated major activities e.g. exploration, drilling, production, well intervention and service provision remain primarily controlled and managed by foreign multinational companies. Only minor contracts have been awarded to local contractors. Several factors, ranging from locally inadequate finance being available, corrupt local operators, lack of technical expertise and the conflicting attitudes of multinational operators and local contractors have contributed to this. Yet, numerous opportunities are increasingly available for indigenous entrepreneurs and local contractors. To achieve good public relations, sustainability and better economic performances, a wiser balance between globalisation and localisation is needed! This study considers the impedances to achieving greater indigenous inputs to the CONG sector, with recommendations proffered with respect to what could be done to alleviate them.

Local Content Policy, Human Capital Development and Sustainable Business Performance in the Nigerian Oil and Gas Industry

“…A more comprehensive definition was offered by the NNPC (2006), as "The quantum of composite value added or created in the Nigerian economy through the utilization of Nigerian human and material resources for the provision of goods and services to the Petroleum Industry within acceptable quality, health, safety and environment standards in order to stimulate the development of indigenous capabilities". It can also be defined as the integrated contributions to myriad of operations or inputs in the crude oil and natural gas extraction process, which are made by Nigerian personnel, local contractors, wholly owned Nigerian companies or by Nigerian registered companies in which Nigerians effectively own a majority of the equity (Nwosu et al, 2006). Thus, Local Content Policy generally seeks to promote a framework which ensures that local competencies are built (to internationally acceptable standards) through the active participation of Nigerians, and the deployment of local resources and raw materials, in oil and gas related activities.…”

Public participation in EIA: the case of West African Gas Pipeline and Tank Farm projects in Nigeria

“…) This quasi-participation can be likened more generally to what Richardson et al (1982, p. 2) describe as 'inner circle negotiation, which involves a limited range of groups who matter' in policy implementation. In more general terms, unequal access to consultative and participatory process has remained a monumental challenge in developing countries (Nwosu et al 2006;Wood 2003).…”

Technology Transfer and the Challenges of Local Content Development in the Nigerian Oil Industry

“…The economy has not been any better, the oil industry still remains an enclave with little or no multiplier effects on the economy as the MNCs continue to exercise oligopolistic control over all aspects of oil technology from exploration, production and refining to marketing. Contract dispensing pattern remains the same with massive capital flight (Table 3) not just via contracts but remuneration for foreign expatriate labour, payment for training and development programmes outside Nigeria, equipment procurement abroad and importation of software and data monitoring systems (Nwosu et al, 2006). Source: Heum et al (2003).…”