March 6, 2018

An indigenous oil logistics firm called for quick passage of the Petroleum Industry Bill (PIB) to support local capacity building in the oil and gas sector to thrive.

Speaking on the benefits of the Nigerian Local Content Act, while briefing the media in Lagos on Monday, the Chief Executive Officer of Fortune Global Shipping and Logistics, Mr Eric Opah, said the Nigerian Act was a law targeted at promoting local participation in the oil and gas industry.

Opah said that PIB was aimed at providing exclusive consideration for Nigerian indigenous service companies which had demonstrated ownership of equipment, Nigerian personnel and capacity to execute jobs in the Nigerian oil and gas industry.

He observed that the implementation of the law had significantly offered indigenous companies the opportunities to break even in the sector, but said that PIB, if passed into law will further support investment and increase activities in the industry.
He said the company played crucial role in the Egina floating production storage and offloading facility (FPSO), developed by the French group Total.

The company, he said, had built strategic partnerships to strengthen its new business portfolio in the oil and gas sector, adding that with fresh opportunities it was exploring offshore and that the company would break more grounds.

According to him, we played a major role in the delivery of the Egina FPSO and our input is critical which goes to confirm our competences in oil servicing space.

“The Egina was very challenging to us as an indigenous oil company because we export the pressure tank to South Korea and the local content implementation of the project facilitated the in-country integration of the infrastructure.

“So, I want to urge the National Assembly to expedite action on the PIB because we need strong fiscal policy to help develop local competences and improve indigenous oil companies participation in oil and gas activities, especially now that the oil prices is improving,’’ Opah said.

He added that the company had commenced expansion outside Nigeria to export capacities and explore opportunities in the international market.

“One of the challenges local players face today is access to finance and to compete in the global market, you need adequate capital base and this is where we find it difficult to handle big projects.

“However, we have expanded to Ghana and the U.S. and we are looking at new opportunities that will support our growth strategy and plan,’’ he said.