Friday, November 11, 2011

Niger Delta: Group threatens to disrupt operations of oil companies

The Niger Delta Indigenous Movement for Radical Change (NIMRC) has threatened to disrupt operations of multinational oil companies that were yet to comply with the implementation of the Local Content Act.
The group handed down the warning in a statement in Warri, saying “we will continue to fight for a better deal for our local contractors and the people of the region.”
It, however, commended Shell Petroleum Development Company (SPDC) for its recent award of N7.8 billion contract to a Nigerian firm, SCC Limited, as part of its implementation of the Local Content Act.
The group vowed to visit hostility on other oil majors that were yet to embrace the Act aimed at encouraging empower-ment of Nigerians, through award of contracts and employment of youths.
Shell had in a statement said it had awarded $50 million (N7.8 billion) contract to SCC Limited for the manufacture of pipe lines.
But the movement, which had been battling the multinational oil companies including SPDC over alleged subversion of the Local Content Act, hailed the award of the contract to the Nigerian firm.
The group also lauded the recent award of the Amukpe-Escravos Pipeline project to FENOG Nigeria Limited by Pan Ocean Oil Corporation.
The president of the movement, Nelly Emma; its secretary, John Sailor and the public relations officer, Mukoro Stanley, said in a statement in Warri that the award of the contract by Shell to a Nigerian firm would boost the local content.
According to the group, the region would be a peaceful place if local contractors were encouraged by oil majors and urged Shell to award more contracts to Nigerian firms rather than foreign firms.
“We want to hail Shell for the recent award of N7.8 billion contract to a Nigerian firm. This is good news to our group that has been fighting for the survival of the Local Content Act and transparency in the petroleum industry.
“Shell and other oil majors will not have any problem with our group as long as they do not act in a way to undermine the Local Content Act. This gesture by Shell is a right step in the right direction, but this does not mean that we will not fight on, oil majors will not know peace in the region unless they do the right things,” the group said.