Group Tackles Shell, Saipem, Others Over Local Content Law

…Vows To Resist Anti-N’Delta Activities Of IOCs …Calls On Diezani To Prevail On ‘Saboteurs’ SAN FRANCISCO, August 19, (THEWILL) – Oil and gas monitoring group, the Niger Delta Indigenous Movement for Radical Change (NDIMRC), has accused Anglo Dutch oil company, Shell and other International Oil Companies (IOCs) operating in the Niger Delta of deliberately sabotaging the […]

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…Vows To Resist Anti-N’Delta Activities Of IOCs

…Calls On Diezani To Prevail On ‘Saboteurs’

SAN FRANCISCO, August 19, (THEWILL) – Oil and gas monitoring group, the Niger Delta Indigenous Movement for Radical Change (NDIMRC), has accused Anglo Dutch oil company, Shell and other International Oil Companies (IOCs) operating in the Niger Delta of deliberately sabotaging the Nigerian Local Content law.

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The group alleged that Shell and others IOCs were reportedly frustrating the implementation of the local content law, particularly the engagement of local contractors who have built capacity in the Niger Delta region in their activities.

According to the group, local contractors who obtained loans from banks over the years to build capacity following the signing into law of the Nigerian Local Content Bill are indebted to the banks because Shell and other IOCs, according to the group are frustrating them from getting jobs in the oil and gas industry.

Specifically, the group alleged that Saipem was offering ‘bribes’ to Shell International so that it can remain the only contracting firm handling oil and gas jobs in the Niger Delta, thus undermining the Nigerian Local Content Bill which encourages indigenous contractors who had built capacity in the region to participate in oil and gas sector of the economy.

“Our indigenous contractors who obtained huge loans from various banks over the years to invest heavily on capacity building are not getting a better deal from the multinational oil companies and Shell is a major culprit, hence we are urging the Honourable Minister of Petroleum to call the company to order so as to end the frustration of our local contractors in the hands of Shell, ExxonMobil, Total, Chevron and Agip,” the group said in a statement.

In the statement signed by the group’s President, Nelly Emma; Secretary, John Sailor and Public Relations Officer, Stanley Mukoro and obtained by THEWILL, the group however vowed to resist further anti-Niger Delta activities of the IOCs, saying “We shall resist all attempts by royal Dutch oil giant, Shell Petroleum Development Company (SPDC) and other multinational oil companies to frustrate the Nigerian Local Content Law.”

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They said the IOCs were undermining the law signed by President Goodluck Jonathan on 22nd April, 2010 by “dishing out injustice and unfair treatment to the people of the Niger Delta region.”

The group said it has since drawn the attention of the world to the “unholy activities of Shell in the oil-rich Niger Delta region but noted that the situation remained the same as the company has been recalcitrant in its activities in the region.

According to NDIMRC, “Our local contractors have shown serious commitment to the development of the oil-rich Niger Delta region but Shell has been frustrating them for their selfish reasons. We believe that we have qualified and experienced indigenous contractors in the region, but the management of Shell in The Hague is not allowing the indigenous contractors to execute projects meant to change the fortunes of the poverty-stricken people of the region.

“But we are not going to allow Shell to get away with this. We want an end to this injustice now. We will not take kindly to a situation where our local contractors that are heavily indebted to banks are allowed to fold up as a result of the conspiracy by Shell, Exxonmobil, Total, Chevron and Agip against them.”

Consequently, the group accused Saipem for allegedly ‘blocking’ the chances of local contractors in the region, alleging that Shell was conniving with Saipem to sabotage the Nigerian Local Content Law.

“Saipem is the one always picking the juicy contracts in the region at the detriment of our local contractors and it is because Shell have been conniving with them. We have accused Saipem severally of frustrating our indigenous contractors, especially whenever they failed to win the bid for projects in the region.

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“The cruel plans of the multinational oil companies against our people are coming from their headquarters and even when their Managing Directors in Nigeria are telling their home offices on the need to respect the Nigerian Local Content Law, they don’t listen to them because of the kick back by Saipem and others to their home offices,” the group alleged.

The group also alleged that Saipem is often awarded contracts through the backdoor because of its romance with Shell and other IOCs to the detriment of local contractors who also competed for such jobs and has approvals.

“We have also exposed Saipem to the world of how they are always awarded projects not approved by the Board of the Petroleum Ministry and so we are calling on the Petroleum Minister to beam a searchlight on activities of Saipem and Shell.

“We want the Honourable Minister to act fast and help our local contractors and by extension the people of the region. These multinational oil companies are doing everything to kill the dreams of local contractors and we want the Minister to prevail on the management of Shell in The Hague to change its attitude to local contractors and give them a fair deal,” the statement said.

The group however urged the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Engr. Ernest Nwapa, to ensure that Shell demonstrates strict compliance with the provisions of the Nigerian Oil and Gas Industry Content Development Act.

The group said though it is aware of how the IOCs are ganging up to frustrate the NCDMB boss in his effort to ensure the Nigerian Local Content Law succeeds, it urges Nwapa to “shame his conspirators” by taking bold steps to invite Shell to offer some explanations over the Trans Niger Pipeline Loopline Projects (TNPL) expected to give a life line to the people of Niger Delta region and other Nigerians.

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“We are aware of the gang-up against Engr. Nwapa in order for him not to succeed in his national assignment. But we want to urge him to put in the needed efforts so as to shame his conspirators.

“Engr. Nwapa should, as a matter of urgency, invite Shell over the pre-bid and pre-award of the TNPL as our local contractors who are to be awarded these projects have met all the requirements but the management of Shell in The Hague is thinking otherwise,” the statement said.

The group therefore appealed to the Petroleum Minister and NCDMB boss to join forces in ensuring that the indigenous contractors that have fully invested in the TNPL are allowed to execute the projects.

While reiterating that the alleged ‘gang-up’ by the multinational oil companies to frustrate the Nigerian Local Content Law must come to an end, the group maintained ; “These multinational oil companies cannot behave in this manner in their home countries; as such they must be made to respect the Nigerian Local Content Law if they must continue to operate freely in the country.”

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