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Wednesday, May 23, 2018
The Nigerian government, through the Nigerian Content Development and Monitoring Board (NCDMB), directed Seplat Petroleum to halt work. The call for suspension of work revolves around an alleged violation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 by using a UAE firm for the engineering and fabrication.
The Jisike oil field is currently the only producing field in OML 53; however, OML 53 also contains the large undeveloped Ohaji South gas and condensate field, the development of which would be coordinated with the Shell-operated Assa North field on adjacent OML 21, together referred to as the ANOH Gas project.
Seplat denies any violation saying that it has not signed the FID for the project so it could not have violated Nigeria’s local content laws. Further to its defense the company said another point in its favor against the allegations is that it has not awarded any contracts.
Seplat’s spokesperson, Dr. Chioma Nwachuku, said “We have not taken the FID. How can we award contracts without funding? Where will the money come from? Seplat and partners have not taken the FID. There is no contract that has been awarded at this stage. We don’t know where they (NCDMB) are getting the report from but we are meeting with them on Tuesday (tomorrow) to give them update,” she explained.
In addition to Seplat, NCDMB has also given AMNI International Petroleum Development Company orders to explain why it embarked on the deployment of non-compliant expatriates and procurement of several third-party services, especially 12-inch and 4-inch coated pipes, for the company’s projects and activities without the approval of NCDMB.
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