Buy barites elsewhere asides these four firms, risk sanctions, NCDMB tells oil producers, rig operators, contractors
Nigeria has read riot act to producers in its crude oil value chain on Barites purchase for their drilling operations, declaring that they either buy the material from four firms it approved or risk sanctions.
Platforms Africa reports that the Nigerian Content Development and Monitoring Board (NCDMB) approved four firms for the supply of Barites required for any drilling project or contract in the Nigerian oil and gas industry.
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The four Barites processors are Nishan industries Limited located in Port Harcourt, Rivers State; Delta Prospectors Limited in Lafia, Nasarawa State; Ana Industries Limited in Port Harcourt, Rivers State and Baker Hughes Company Limited at Onne, Port, Rivers State.
The NCDMB, which released the list in its “Public Notice on Procurement of Barites for Oil and Gas Projects,” obtained by Platforms Africa and signed by the Executive Secretary, Engr. Simbi Kesiye Wabote and dated 27th of May 2021, added that all project promoters in the Nigerian oil and gas industry are to ensure that Barites required for any project shall be procured only from the approved Nigerian Barites processing companies with Category A Nigerian Content Equipment Certification (NCEC).
Platforms Africa reports that the Board listed 10 other companies that “have also been identified and shall be upgraded to Category A NCEC, as soon as they meet the requirements of the Guideline for the Utilization of Locally Produced Barite and Drilling Fluids in Nigerian Oil and Gas Industry.”
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It further informed operators, contractors, service companies and other stakeholders of the availability of in-country processed barites that meet the specifications of the oil and gas industry.
It added that NCDMB is “mandated to develop capacity of the local supply chain through Direct Capacity Development Interventions or support to investors to set up facilities and has a key responsibility to ensure that these investors are protected in line with the intents of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The policy intervention by the Board to encourage such investments is to mandate stakeholders to prioritize the utilization of manufacturing facilities in the procurement of Barites, the public notice added.
It stated that the Board would be expecting quarterly reports from operating companies confirming the procurement of Barites and related chemicals through Purchase Orders (PO) given to these companies.
It warned that consequences of violating the Public Notice shall include: Refusal of the Board to issue Certificate of Authorization to the operator, project promoter and contractor, Refusal of the Board to participate in the Operator`s Tender or issuance of Nigerian Content Compliance Certificate (NCCC) and Denial of the issuance of Nigerian Content Equipment Certificate for the production and supply of locally produced Barite and
Drilling Fluids in the Nigerian Oil and Gas Industry for a period to be determined by the Board.
The Board could also initiate the penal sanctions provided in section 68 of the NOGICD Act, invoke administrative sanctions in line with section 70 (i) and (p) of the NOGICD Act or apply other penalties.
