NCDMB announces approval of four firms to supply barites for oil and gas operations

Chinazor Megbolu

The Nigerian Content Development and Monitoring Board (NCDMB) has announced the approval of four firms for the supply of Barites needed for any drilling project or contract in the Nigerian oil and gas sector.

The four Barites, the organisation said, are processors for Nishan industries Limited located in Port Harcourt, Rivers State; Delta Prospectors Limited in Lafia, Nasarawa State; Ana Industries Limited in Port Harcourt, Rivers State and Baker Hughes Company Limited at Onne, Port, Rivers State.

The was contained in the Procurement of Barites for Oil and Gas Projects document signed by the Executive Secretary, NCDMB, Engr. Simbi Wabote, was dated May 27, 2021.

“All the project promoters in the Nigerian oil and gas industry are to ensure that Barites required for any project shall be procured only from the approved Nigerian Barites processing companies with Category A Nigerian Content Equipment Certificate (NCEC).

“Ten other companies that have also been identified and shall be upgraded to Category A NCEC, as soon as they meet the requirements of the Guideline for the Utilisation of Locally Produced Barite and Drilling Fluids in Nigerian Oil and Gas Industry,” Wabote said.

The document further charged the operators, contractors, service companies and other stakeholders of the availability of in-country processed barites that meet the needs and specifications of the oil and gas industry.

According to the document; “NCDMB is mandated to develop capacity of the local supply chain through Direct Capacity Development Interventions or support to investors to set up facilities and has a key responsibility to ensure that these investors are protected in line with the intents of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act”.

Wabote also explained that the Board would be expecting quarterly reports from operating companies confirming the procurement of Barites and other related chemicals through Purchase Orders (PO) given to these firms.

They, however, warned that consequences of violating the Public Notice shall include Refusal of the Board to issue Certificate of Authorisation to the operator, project promoter and contractor, Refusal of the Board to participate in the Operator’s Tender or issuance of Nigerian Content Compliance Certificate (NCCC) and Denial of the issuance of Nigerian Content Equipment Certificate for the production and supply of locally produced Barite and Drilling Fluids in the Nigerian Oil and Gas Industry for a period to be determined by the Board.

The NCDMB chief executive also stated the Board could also initiate the penal sanctions provided in section 68 of the NOGICD Act, invoke administrative sanctions in line with section 70 (i) and (p) of the NOGICD Act or apply other penalties deemed fit in line with the provisions and aspirations of the NOGICD Act.