By Sebastine Obasi

A WHOLLY indigenous oil services company, Ofserv Nigeria Limited, said that the non-implementation of the local content law could deprive indigenous companies the benefits for which the law was passed. Ofserv made the observation following what it called the non-compliance with memoranda of understanding, MOUs, by some foreign companies operating in Nigeria.

According to the Chief Executive Officer, CEO, Ofserv, Mr. Dimeji Bassir, some foreign companies, in connivance with some Nigerians, subvert the local content initiative of the Federal Government, thereby denying contracts and jobs for the citizenry.

Offering an insight into the manipulations of the local content, Bassir alleged that between December 2014 and June 2015, Weatherford International Plc and Weatherford Nigeria Limited persuaded Ofserv into believing that they were engaged in a partnership to jointly exploit Nigeria’s drilling services market.

Proprietary market

Based on that partnership, Ofserv was said to have expended significant resources and shared valuable proprietary market information, resulting in damages to Ofserv’s competitive position in the Nigerian drilling services market, loss of goodwill and market share, as well as significant monetary damages in the form of loss of profits.

Bassir further said that Weatherford knew and actively encouraged Ofserv to rely on their supposed partnership to exploit them as a means to cheaply effect Weatherford’s entry into the Nigerian drilling services market.

According to Bassir, Weatherford’s misrepresenta-tions were intended to evade and violate the Nigerian Oil and Gas Industry Content Development Act, NOGICD, which formed the basis of the parties’ relationship from the beginning.

Consequently, Ofserv has approached the Federal High Court, Lagos for equitable and statutory relief from Weatherford’s actions including awarding compensations and damages for lost work and profits to the tune of $32.1 million.

When contacted, Country Manager of Weatherford Nigeria Limited, Mr Femi Akarakiri stated thus: “I appreciate the effort you made to reach me on this matter. Ofserv has actually instituted a case in court against Weatherford. We are a multi-national company. We have been in Nigeria for a long time. There is a kind of illusion on the part of Ofserv as to how  the job should be done. We need to allow the court to do its job. It is really left for the court to decide.”

Reps worry on policy circumvention

The Ofserv debacle with Weatherford on local content is coming few weeks after the Chairman, House of Representatives Committee on Local Content, Mr. Emmanuel Ekon, said the policy is being threatened by the activities of some Nigerians in connivance with their foreign counterparts.

Speaking at the just concluded Offshore Technology Conference, OTC, in Houston, Texas, Ekon, who represents Abak Federal Constituency, accused some Nigerian professionals of aligning with some foreign clients to circumvent the local content policy.

He said: “Nigerians are impeding the implementation of the local content law. A situation where Nigerian employees of the international oil companies, IOCs would tell the House Committee all sorts of lies is worrisome.

“A situation where lawyers who are supposed to defend the integrity of their country, Nigeria, but instead, take sides with the IOCs and work against Nigeria is a very serious issue that should be looked into.”

The lawmaker argued that the local content law in its entirety should be beneficial to all Nigerians if implemented appropriately.

He said: “Local content has the capacity to turn around the fortunes of Nigeria for good. It has the capacity of transforming our economy to any level that we want to, but again the implementation lies with us all.   We must realise that Nigeria is our country. We do not have any other country to call our own.

“Local content implementation is something every Nigerian must vigorously pursue. If it works, it will be good for all of us; it will be good for our children and even the yet unborn,” he said.

He however urged that local content should be extended to other sectors of the economy, in order to achieve maximum benefits.