Contribution To Nigerian Content

Contribution To Nigerian Content

Nestoil's very existence is based on principles of Nigerian Content development. Its founding in 1991 – 19 years before the Local Content Act came into law, was in a bid to champion significant participation by indigenous companies in the oil and gas sector.

Outlined below is the framework under which Nestoil has complied with the Nigerian Content Act over the years. We pride ourselves on being one of the exemplary companies, with respect to local content actualization in Nigeria.

NESTOIL actively utilizes Nigerian human and material resources in its operations. We give full and fair opportunities for Nigerian entrepreneurs either solely or in partnership/strategic alliances with foreign outfits to participate in all our business operations, with such consideration made in a manner that do not adversely impact on the commercial viability of the business.

We have developed a statutory policy on local content development which gives a backbone to the goal of local capacity building. The requirements of this policy are applied across board on all our operations. The Management and company employees (both old and new) are constantly reminded of the policy requirements and are expected to apply them. All efforts at indigenizing our operations emanate from this policy. Nestoil’s successful implementation of its policy to comply with the Nigerian Content Act 2010 can be viewed from four cardinal areas:

  • Manpower Development

    Pursuant to NESTOIL's local content policy, employment in NESTOIL is skewed towards giving first preference to the best available locals. Our recruitment practice – in-house or outsourced – requires that advertised positions are filled in by first considering the applications filed by local personnel. It is only in the absence of qualified nationals that such positions are filled by expatriate personnel. No positions are exclusively reserved in the top management and middle management categories. Positions in the lower rungs of staffing ladder are however reserved completely for nationals. Save for this singular consideration, NESTOIL remains an equal opportunity employer.

    NESTOIL focuses on optimizing local content to create value and jobs in Nigeria. Top management of the company has over 98% Nigerian content and the management and engineering staff has extensive working experience in Nigeria covering a period of over twenty years.

    Nigerians occupy about 95% of the positions available. At the moment the company currently employs over 1,500 Nigerians at various levels. Expatriate employees of the company have Nigerians attached to under-study them, where required.

    In our various past projects, 97% of the Project Management was carried out and delivered by Nigerians.

    Nestoil Limited Manpower Status:

    Key management positions:
    Nigerians: 98%
    Expatriates: 2%

    Nestoil Manpower Status
    Percentage of Total workforce:

    Nigerians: 95%
    Expatriates: 5%

    Nestoil Percentage of Total Workforce
  • Material Resources

    Equipment:
    Nestoil Limited has series of equipment which enhance its operations/projects. These equipments are Lay barges, Barges, House Boats and similar equipments. As much as possible, Nestoil Limited’s equipment are locally procured by Nigerian registered material procurement companies and subcontractors to Nestoil Limited. These range from Cranes, Pay – loader/Folk-lift, Swamp buggy/excavator, Pipelayer, various dredgers, Welding machines etc.

    The equipment management has given rise to continuous training of Nigerian personnel

    All of the above shows the efficiency and the technical-know-how of Nestoil Limited’s Engineers and the vast investment of Nestoil Limited.

    Facility:
    Nestoil Limited maintains a modern facility located in Abuloma within Port Harcourt, Rivers State which boosts its operation and enhances the Nigerian Content dream of “Adequate in-country Facility”. The facility comprises a marine/Load out jetty, large fabrication yard, workshops and work-area including open air storage, sensitive items storage, and above-ground storage tanks (AST) with adequate security of personnel & equipment. Nestoil Limited offices and yards are linked with a strong IT infrastructure which supports 24 hours access to information via the intranet and the internet.

    We have built an in-house capability to deliver catering services since 2007, and this has been successfully deployed to service all her projects.

  • Local Collaboration/Use Of Subcontractors

    A major setback to the local content optimization dream in the nation of Nigeria is the refusal of local companies to work together or collaborate on issues relating to oil and gas operations. We realize this as a strong setback. The nature of oil and gas EPC projects requires networking not only vertically with foreign alliances but even more so horizontally with local companies. Such lateral networking translates to a pooling of strength in diverse fields. Pursuant to the local content optimization, Nestoil seeks the hands of local companies for varying degrees of relationship and for support.

    The common denominator of Nestoil’s ideals is the desire for capacity building and local content development. We have chosen to do in its area of operation- The Nigerian Oil and Gas sector.

    The composite nature of Nestoil’s contracts has made it impossible to involve local contractors to participate. Their exclusion is usually anchored on the reason that their services are considered substandard.

    At Nestoil, we realise that EPC contracts are no more than mega contracts with mini components. Our approach therefore is a mega-mini approach wherein our projects are broken down into components, followed by active prequalification of local contractors for participation, while not compromising issues that border on quality, safety, cost and delivery schedule. Nestoil tries to play down the rocket- science approach to EPC projects.
    The company maintains a strong subcontractor interface management department, which manages all Nestoil subcontractors. A database is also kept of these subcontractors, their trade and their performance.

    In compliance with the NCD Act of 2010, Nestoil has - in its past and present projects - developed relationships with some Nigerian indigenous companies and subcontractors as attached. The attached list is not conclusive as new contractors are always evaluated, categorized and add to the list especially contractors from the host community.

    The company’s management is fully committed to the development and support of competent and capable Nigerian companies and supports Nigerian government’s commitment to Local Content Development.

    Management proactively and energetically pursues the maximization of Nigerian Content on all contracts for such activities as:

    • Engineering
    • rocurement
    • Fabrication
    • Construction
    • Dredging
    • Inspection
    • Manpower
    • Materials
    • Lower tier subcontractors
    • QAQC
    • Health & Safety and other services
  • Community Development

    Nestoil Limited acknowledges the importance of host communities, hence the signing of her Community Affairs Policy. In carrying along her local host communities, Nestoil Limited has entered into agreements with various local host communities such as Abuloma community, Port Harcourt, Nembe Community, Bayelsa State, Ibino community, Eket, Akwa-Ibom State.

    Some of the community development programmes Nestoil has undertaken includes, but is not limited to, the following:

    • Annual provision of scholarship to 4 Abuloma indigenes and payment of annual development levy.
    • The co-sponsorship of the SPDC/Nestoil Music Talent Hunt, 2011 edition held at the Atrum Hall, Stadium Road, Port Harcourt to support musical talents from the host communities on the ROW of the old NCTL line
    • The donation of cash sums to the Abuloma Youth Council to aid the installation of a transformer
    • The annual grading of the Abuloma Roads contained in the duly executed MOU between Nestoil Plc and Abuloma Community

Commendation

At the Nigerian Content Exhibition in October 2013, which took place in Port Harcourt, Shell Petroleum Development Company of Nigeria awarded Nestoil with a NIGERIAN CONTENT INVESTMENT AWARD for being the highest contributor to Nigerian content in terms of personnel and facility.

SPDC Nigerian Content Award