Prepared by. Moses O. Kragha Kragha & Associates ( Mining & Petroleum Consultants) June 27, 2013

Transcription

1 THE NIGERIAN CONTENT DEVELOPMENT AND MONITORING BOARD (NCDMB) - Its monitoring role in NC compliance and project implementation Paper Presented at the Sensitisation/Enlightenment Workshop on the Nigerian Oil and Gas Industry Content Development Act-2010, at Uyo, Akwa Ibom State Prepared by Moses O. Kragha Kragha & Associates ( Mining & Petroleum Consultants) June 27,

2 Order of Presentation. Introducing the NCDMB. The Board s structure and operational modalities. Its monitoring role in NC compliance and project implementation: - the e-market place (NiPeX) - the NJQS 2

3 1. Introducing the NCDMB. The NOGICD Act was enacted in April, The Act established the Nigerian Content Development and Monitoring Board (NCDMB) with a mandate to superintend over all matters pertaining to Nigerian content development in the Nigerian oil and gas industry, in order to rapidly address the challenges of promoting indigenous participation in the industry activities.. NCDMB is to continuously transform the oil and gas sector by developing in-country capacity, indigenous capabilities and competences of high international standards that will result in significant employment creation, technology transfer; (acquisition, rather!); GDP growth and wealth creation 3

4 1. Introducing the NCDMB Cont d. It shall develop procedures that will guide, monitor, co-ordinate and implement the provisions of the Act.. In implementing the provisions of the Act, it shall ensure a measurable and continuous growth of NC in all oil and gas arrangements, projects, operations, activities or transactions in the Nigerian oil and gas industry.. Detailed list of the functions of the Board are contained in Part II- Establishment of the Nigerian Content Monitoring Board, Sections 70a) -70p) 4

5 2. Structure and operational modalities of the Board. The Board has a Governing Council Comprising: a) The Chairman who is the Minister of Petroleum Resources b) A representative of: i. Nigerian National Petroleum Corporation ii. The agency in charge of technical regulation of the industry iii. Ministry of Petroleum Resources iv. Petroleum Technology Development Fund v. Nigerian Content Development Forum vi Council of Registered Engineers of Nigeria vii. National Insurance Commission c) Executive Secretary who shall be the Secretary of the Council d) The membership of the council is on part time basis; the ES is on full time status. 5

6 2. Structure and operational modalities of the Board Cont d. The Council has power to: o Manage and superintend the affairs of the Board; o Make rules and regulations for the proper functioning of the Board; o Employ and pay the staff of the Board appropriate remuneration commensurate in scale with that of staff in organisations of similar structure; and o Enter into any negotiation, agreement and contractual relationship as may be necessary or expedient for the discharge of the functions of the Board. The Executive Secretary shall be: o The Chief Executive and Accounting Officer of the Board o Responsible to the Council for the execution of the polices and the administration of the daily affairs of the Board 6

7 2. Structure and operational modalities of the Board Cont d. Four Directorates have initially been established at the Board s Head Office at Yenagoa, Bayelsa State. These are: o The Directorate of Finance and Personnel Management; o The Directorate of Planning, Research and Statistics; o The Directorate of Monitoring and Evaluation; o The Directorate of Legal Services; and o any other Directorate which the Council may establish.. The Board has zonal offices which are headed by Zonal Co-ordinator across the Oil And Gas Producing Niger Delta region. 7

8 3. Monitoring Role of NCDMB in NC compliance and project monitoring 3.1. For NC Compliance There shall be established by the Board o The e-marketplace (NiPeX) where all Oil companies, contractors and services providers are registered and all capabilities warehoused, It is used to prequalify once and for all contractors, to bid for contracts in the activity areas they have capabilities, capacity and competences, with good CASHES and QA/QC Plans. Contracts are advertised here as well, for prequalified contractors to bid (technical and commercial bids). o The Joint Qualification System (JQS) is a tool used to measure the NC development performance of oil companies, contractors and service providers both on time basis and in projects:- 8

9 a) On time Basis: NCDMB-MONITORING ROLE Towards the ending of each calender year, each company/contractors/ services provider submits its NC Development Plan, using the Board s JQS guidelines, for the next calendar year. On a quarterly basis, the company s performance is matched against its forecast, using the same JQS set of criteria for all companies/ contractors in the same activity or sub activity area. The annual cummulatives are collated at the end of the calendar year. Contractors are expected to progressively grow and sustain their percentage NC development to 100%, (if they ever get there). Those that perform well are rewarded, while poor performers are sanctioned. 9

10 The Joint Qualification System (JQS) Cont d b) On Project Implementation. Every operator/contractor must submit its NC development plan and get the Board s Authorization before commencing work at a new project site.. The submission/application to the Board must contain the detailed NC Development Plan.. The Board monitors the performance on NC development during the implementation of the project, for adequate compliance. 10