NIGERIA LOCAL CONTENT ACT: IMPLICATIONS FOR IOCS AND CONTRACTORS

After 50 years of production the Nigerian oil and gas industry still has the feel of an autonomous industry operating within the country but somehow not linked or providing benefit to the wider economy.

After years of government tinkering with existing legislation and a raft of initiatives that served only to cloud the issue, the Nigerian Oil and Gas Industry Content Development Act 2010 is set to bring about a regulatory framework that will ensure the industry provides greater transparency, maximizes benefits to Nigerians and provides incentives for indigenous companies.

The Act's scope will impact both international oil companies and foreign contractors alike in the areas of eligibility to operate, tendering and contract award, training, technology transfer, insurance, legal representation and financial services.

It is vital that companies wishing to do business in the Nigerian oil and gas industry are familiar with the requirements of the Act and ABC members can obtain a copy by clicking here.

ABC, 2nd March 2011