By Correspondent.
Senator Natasha Akpoti-Uduaghan, Chairman of the Senate Committee on Local Content, has called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to mandate International Oil Companies (IOCs) to prioritise engaging local companies for project execution.
Speaking during a meeting with the Senate Committee on Appropriation, the Nigerian National Petroleum Corporation (NNPC), and the NUPRC, Senator Akpoti-Uduaghan expressed concern over the neglect of local companies, citing the example of Samsung Heavy Industries Nigeria. Despite investing $272 million in a facility in Lagos and training over 500 Nigerians, Samsung has only secured one project since 2013.
The senator emphasised that engaging local companies would reduce production costs and turnaround time, while creating jobs for Nigerians.
Her words; “A few weeks ago, Samsung Heavy Industries Nigeria approached me in my capacity as Chairman of the Senate Committee on Local Content. They informed me that in 2013, they invested $272 million to establish a facility in Lagos and trained over 500 Nigerians.
“However, despite this significant investment, Samsung Heavy Industries—a reputable player in the upstream sector—has only managed to secure one project since 2013, and that was back in 2018. They have repeatedly applied to various companies but have not received any contracts, even though they are fully capable of handling these projects.
“Instead, international oil companies (IOCs) are outsourcing these contracts to foreign companies, neglecting local firms like Samsung that possess the capacity to deliver these services within Nigeria. This situation is unacceptable.
“We seek to understand why a major fabrication company like Samsung Heavy Industries, which has invested heavily in Nigeria, is being overlooked. Engaging them would not only reduce production costs and turnaround time but also create jobs for Nigerians.
“Often, we encourage foreign companies to invest in Nigeria with the promise of engagement, which is meant to yield mutual benefits: profit for investors and economic growth, including job creation, for Nigeria. Unfortunately, since 2018, none of the IOCs have engaged Samsung for turnaround maintenance or any other projects”.
She urged the NUPRC to ensure that IOCs prioritise local content in their operations.
In response, NUPRC Commission Chief Executive Gbenga Komolafe acknowledged the issue and highlighted the recent improvement in rig count, which is expected to drive positive changes in the sector.
“For a long time, capital expenditure in the industry was below 94 percent, which negatively impacted the rig count. However, the current rig count has increased to approximately 31 percent, which is encouraging. We expect this improvement to lead to positive changes in the sector,” the NUPRC boss noted.
