NCDMB Wants Indigenous Firms to Embrace Corporate Governance

The Nigerian Content Development and Monitoring Board (NCDMB) has appealed to indigenous oil and gas companies to embrace corporate governance in their operations for maximum growth and productivity.
This was even as NCDMB enjoined the companies to comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and consult regularly with the board.
Executive Secretary of the NCDMB, Engr. Simbi Kesiye Wabote disclosed this on Friday when he received the Chief Executive Officer of Heritage Energy Operational Services Limited (HEOSL) Mr. Ado Oseragbaje alongside other officials in Abuja.
He identified lack of corporate governance as the biggest drawback for most indigenous oil and gas companies, regretting that owners and directors of indigenous firms serve as contractors to their company, thereby contravening corporate governance procedures and delivering poor services.
Wabote warned that such negative practise could affect the divestment of assets by some international oil and gas entities to indigenous firms.
The executive secretary praised the management of HEOSL for revamping their company, just as he appealed to them to employ competent staff to manage sensitive positions.
Wabote highlighted the need for oil companies to remit one percent of contract sum to the Nigerian Content Development Fund (NCDF) as mandated by section 104 of the NOGICD Act.
He pointed out that NCDMB serves as an enabler of business, emphasising that the agency’s regulatory decisions are always taken from a pragmatic point of view.
Wabote encouraged oil and gas companies to approach the board regularly for discussions if there are challenges in complying with the NOGICD Act.
The CEO of HEOSL explained that the visit was initiated to brief the board on decisions taken by the company to address some hitches in Nigerian Content practise and other regulatory issues.
HEOSL had executed the Nigerian Content noncompliance remediation programme and the launch of Nigerian Content Research and Development projects at Akwa Ibom State University and Nnamdi Azikiwe University, Awka, Anambra State respectively.
Oseragbaje informed that HEOSL operates the OML 30 Joint Venture between NNPC Exploration and Production Limited and Shoreline Natural Resources Limited Joint Venture (NEPL/SNRL JV).
He stated that the joint venture partners had approved a drilling campaign on their asset, being the first time that such activity would be carried out since Shell Petroleum Development Company (SPDC) divested the asset.
The CEO maintained that HEOSL would be drilling four wells, which is expected to last for four years, adding that they would embark on projects such as facility expansion and water treatment.
He pointed out that the company is almost paying off its debt to the NCDF, just as he thanked the board for its numerous support geared towards improving performance and compliance.

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