Understanding Cabotage and Local Content in The Nigerian Oil and Gas

UNDERSTANDING CABOTAGE AND LOCAL CONTENT IN THE NIGERIAN OIL AND GAS INDUSTRY (UPSTREAM) ORGANISED BY THE NIGERIAN CHAMBER OF SHIPPING IN LAGOS 25TH -27TH JUNE, 2013

 Preamble

  1. The Nigerian Chamber of Shipping with technical support from key Regulatory Bodies in the Nigerian Maritime and Oil & Gas Industries organized a 3-day training Workshop in Lagos from 25th through 27th of June, 2013. The Workshop titled: Understanding Cabotage and Local Content in the Nigerian Oil and Gas Industry (Upstream) was designed to expose participants to a thorough knowledge of the technicalities involved in upstream Oil & Gas operations vis – a –viz the associated logistics involved with commercial shipping and marine activities and also to lead them to a better understanding of the industry contracts, international best practices and investment opportunities within the upstream niche market.
  2. It was an exclusive class with about 40 participants coming from different parts of the country and from diverse business areas such as banking, law firms, marine/shipping companies, Logistics service providers, training institutions, ship building and repair yards, oil servicing companies, government agencies, multinationals (IOCs), attended the Workshop which was interactive and intensive.
  3. The faculty comprised about 15 professional Resource persons that delivered the 10-Module workshop programme under thefollowing topics:

□ The Development of the Oil & Gas / Maritime Sector, Lagos State Perspective

     Hon. Engr. Taofiq Tijani, Honourable Commissioner for Energy & Mineral Resources, Lagos State

 □ Overview of the Upstream Oil and gas Industry in Nigeria;

    a;     The NOGIC ACT 2010: Impact On Shipping And Maritime Services

    b;    The NOGIC JQS Service Company Registration     

    By Engr. Ernest Nwapa, Executive Secretary/CEO, Nigerian Content Development & Monitoring Board (NCDMB)

□ Vessel Registration and Working within the Regulatory Framework

By Mr. A.K Abdulkadir ESQ, Ships Registry Department, NIMASA

□ Funding your Contract/Vessel Financing

    By Sir Peter Olorunfemi, CEO, Peter Maritime Consulting Services

□ Maritime Security;

By R/Adm GSA. Ombo (Rtd) OON, Former Flag Officer Commanding, Naval Training Command

□ Understanding Maritime Insurance

    By Mrs Ekeoma Ezeibe (Esq), MD/CEO Crystal Trust Insurance Brokers Ltd

□ Legal Issues within the Cabotage & Local Content Regimes   

By Mr Uche Nwokedi SAN, Principal Counsel, Uche Nwokedi & Co., Legal    Practitioners & Editor-in-Chief, Nigerian Oil and Gas Cases Law Report

□ Safety, Health & Environmental Issues in Upstream Operations

    By Moses ‘Dele Olaoye, Q-SHE Limited

□ Vessel/Equipment Inspection and Survey & Ship Management

    By Mr. Sampson Chima, Registrar, Nigerian Institute of Shipping NIS

□ Interactive Session/Group Challenge Panel

By Mrs Ify Anazonwu-Akerele, Director General, Nigerian Chamber of   Shipping R/Adm GSA Ombo (rtd), Mrs Nnedinma Onyegbula, Head of Advocacy, Nigerian Chamber of Shipping

To underscore and gauge the participants’ assimilation of the lectures delivered, participants were assigned into 4 Challenge Groups to develop and deliver competitive group presentations based on the instructions received, and create workable Ship Management and Logistics Service scenarios in consideration of Cabotage and Local Content provisions. The winning group

(Group 4) was rewarded with a proposed special session/ visit to the Nigerian Maritime Administration and Safety Agency (NIMASA).

 Certificates of participation were issued to all participants.

 OBSERVATIONS / RECOMMENDATIONS

The workshop concluded proceedings and rose having considered and agreed as follows:

  1. That the Nigerian Chamber of Shipping should not relent in organising such capacity building programmes with the high calibre of faculty in order to grow and deepen knowledge and enhance practical exposure to participants
  2. Participants were encouraged to enrol in the Professional Postgraduate Diploma in Marine/Oil and Gas Management Technology developed by the Chamber in collaboration with Niger Delta University (NDU). The PPGD program is an extended version of the training workshop designed to give participants a more detailed understanding of the core modules that the workshop sought to address.
  3. That banks must play a more positive and active role to encourage funding for local operations while the disbursement of the accumulated funds under Cabotage Vessel Financing Fund (CVFF) is eagerly awaited to stimulate increased tonnage and vibrancy in the cabotage operations.
  4.  The need for interaction with International Oil Companies (IOCs),   Government Regulatory Bodies in the Nigerian Maritime and Oil &  Gas Industry was considered very imperative.

That the indigenous ship owners should collaborate and contribute resources so as to position themselves to attract adequate local or international funding in order to acquire and grow Nigerian

  1. Tonnages, establish P&I Clubs and therefore be in good stead to mitigate their insurable risks.
  2. That Policies within the industry, especially the Cabotage and Local Content Regimes should be implemented in the manner that will instigate local growth, capability and competence
  3. That the contemporary Venezuelan and Brasilian Cabotage and Local Content implementation examples should be studied with a view to strengthening our own  efforts to harness the inherent potentials for development
  4. That concerted efforts must be made by government and its agencies concerned with monitoring and/or securing our maritime borders and coastline and to check the cases of piracy and armed robbery on our waters.
  5. That Safety is a paramount consideration in both the maritime and oil & gas sectors and adequate care should be taken to secure the health of our aquatic/marine environment
  6. That Ship Management is a paramount and focal issue towards the achievement of the requirement for a successful contract in the upstream sector and in cabotage trade, it therefore needs adequate training and competence building to achieve

                 The workshop ended successfully.