NIGERIAN CONTENT DEVELOPMENT SHORT TERM DIRECTIVES (December 13th, 2005)

• FEED and detailed engineering design for all projects is to be domiciled in Nigeria by end 2005.
• Project management teams and procurement centers for all projects in the Nigerian oil and gas industry must be located in Nigeria from first quarter
• Henceforth, all operators and project promoters must forecast procurement items required for operations and projects for inclusion in a master procurement plan (MPP) to be submitted to the Nigerian Content Division of NNPC on or before 31st January of every year.
• From January 2006, all topsides of fixed (offshore and onshore) platforms weighing up to 5,000 tons, are to be fabricated in Nigeria.
• Henceforth, fabrication of all piles, anchors, buoys, jackets, bridges, flare booms and storage tanks are to be done in Nigeria.
• Henceforth, all fabrication of sub-sea systems including riser and flow-lines, sub-sea assemblies and ancillary facilities including system integration tests are to be performed in Nigeria.
• Starting from January 2006, a minimum of 50% of the total tonnage of FPSO topside modules should be fabricated in Nigeria.
• Starting from mid 2006, all FPSO contract packages are to be bid on the basis of carrying out topside integration in Nigeria.
• Starting from mid 2006, all third party services (NDT, mechanical tests, PWHT), certification of welding procedures and welders must be carried out in Nigeria. The Nigerian Institute of Welding must certify all such tests in collaboration with international accreditation bodies.
• All operators and project promoters must ensure that recommendations for contract awards in respect of all major projects being forwarded to NNPC/constituted boards of such oil and gas companies for approval must include evidence of binding agreement by the main contractor with Nigerian content subcontractor. Such agreements shall indicate the cost and detailed scope including total man-hours for engineering, tonnage of fabrication and relevant defining parameters for materials to be procured locally as well as other services.
• Henceforth, all low voltage earthing cables of 450/750 V grade and control, power, lighting cables of 600/1000 V grade must be purchased from Nigerian cable manufacturers.
• All equipment and materials manufactured in Nigeria must be fully utilized and clauses that create impediments for/exclude participation of local companies hould not be included in any ITT.
• From January 2006, all carbon steel pressure vessels of not more than 75mm shell thickness shall be fabricated in Nigeria.
• Domestication of all seismic data processing projects and all reservoir management studies effective end 2005.
• Henceforth, all waste management, onshore and swamp integrated completions, onshore fluid and mud solids control, onshore measurement while drilling (MWD), logging while drilling (LWD) and directional drilling activities are to be performed by indigenous or indigenous companies having genuine alliances with multinational companies.
• All international codes and standards used in the industry are to be harmonized to support utilization of locally manufactured products such as paints, cables, steel pipes, rods, sections, ropes etc and to improve capacity utilization in local industries.