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Author Topic: FG Lifts Ban on Sapiem over Violation of Local Content  (Read 520 times)

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FG Lifts Ban on Sapiem over Violation of Local Content
« on: May 21, 2014, 08:21:18 AM »
The federal government, through the Nigerian Content Development and Monitoring Board (NCDMB), has lifted the ban on the Italian engineering, construction, drilling and oilfield services contractor, Sapiem over alleged violation of the Nigerian Oil and Gas Industry Content Development (NOGID) Act, signed into law by President Goodluck Jonathan on April 22, 2010.

In a letter dated April 7, 2014, with reference number NCDMB/MED/69/14/002, which was signed by the Executive Secretary of NCDMB, Mr. Ernest Nwapa and obtained exclusively by THISDAY, the board said it had reviewed Sapiemís actions, commitments and introduction of new practices.

The letter, which was addressed to the Managing Director of Saipem Contracting Nigerian Limited (SCNL), also noted that the NCDMB has confirmed that the Italian firm has addressed the issues of non-compliance with the NOGICD Act raised against it.

ďIn consideration of the foregoing, the Board hereby lifts the suspension placed on SAIPEM from participating in tenders in the oil and gas industry effective from May 7, 2014. Kindly ensure that you submit periodic reports to the Board on progress milestones in respect of approved CDI milestones,Ē the letter added.

With the lifting of the ban, Sapiem has been given a go-ahead to participate in all the tendering processes in the Nigeria oil and gas industry.

When contacted on the new development, a source in Sapiem told THISDAY that the company is seriously committed to local content in Nigeria and in all the countries where it operates around the world.

According to the source, the company has taken several steps to address the issues raised by the NCDMB and indeed made further commitments to Nigerian Content, which have been endorsed and approved by the board.

The NCDMB had objected to what it called the preponderance of expatriates on one of Sapiemís offshore Project Management Team (PMT).

But Sapiem said it had engaged more Nigerians in the PMT, thereby bringing the number of nationals to 80 per cent.

The Italian firm has sent the new organisation chart and appointment letters to the NCDMB for confirmation.

On Sapiemís plan to fabricate only 20 per cent tonnage of steel structures of one of its projects in Nigeria, the company has reviewed the plan to increase the in-country fabrication to over 60 per cent tonnage, and has also made commitments to support one of NCDMBís capacity development initiatives.

Saipem was accused of procuring goods and services directly from abroad whereas some Nigerian companies have the necessary capacities for the jobs.
It was also said to be dealing directly with foreign original equipment manufacturers (OEM) even when those companies have Nigerian partners and representatives.

To address these concerns raised by the NCDMB, Sapiem has put in place new procurement procedure, which reflects clearer, the aspiration of the Nigerian Content Act and also contains Nigerian Content Evaluation in bid evaluation.
« Last Edit: May 21, 2014, 08:22:19 AM by Adewale Odubiyi »

Adewale Odubiyi
Owner, Nigeria Oil & Gas Forum

Nigeria Oil & Gas Forum

FG Lifts Ban on Sapiem over Violation of Local Content
« on: May 21, 2014, 08:21:18 AM »


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