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US pledges support with newer tech as oil sector local content rise

The United States of America (USA) has pledged to support Nigeria with newer technologies in oil and gas production, as well help deepen the country’s skills in the sector.

This is as the Nigerian Content Development and Monitoring Board (NCDMB), has revealed that its drive has grown local content compliance in oil and gas, from paltry five percent in 2015 to about 40 per cent this year.

Government said recently that the agency will continue to promote the development of in-country capacities for the industrialisation of the nation through the implementation of the Nigerian Content Act.

Making the pledge at a meeting with the US Secretary of Energy, Mr. Rick Perry, on the sidelines of the 24th Africa Oil Week in Cape Town, South Africa, Nigeria’s Minister of State for Petroleum Resources, Ibe Kachikwu, highlighted the local content growth which the oil and gas sector in Nigeria had experienced.

He revealed that government is currently working on a template to push infrastructural development in the sector to the next level, saying a comprehensive map is being developed by the Federal Ministry of Petroleum Resources.

The Minister averred that the new template would be launched in December this year.

Kachikwu told the US Energy Secretary that the Federal Government played a vital role in instituting the Joint Venture cash call payment agreement, ensuring adherence to due process, promoting accountability, encouraging sanctity of contracts and reviewing the fiscal policy to provide incentives for investments in the sector.

According to him, there are plans in place to reduce government’s role in the industry so as to increase private sector participation.

Responding, Perry said the US would be willing to assist Nigeria with access to newer technologies and skill set training to deepen its participation and production in oil and gas.