An indigenous oil servicing company operating in Akwa Ibom, the Pioneer Divers Int’l Ltd, has commenced legal action against Nigeria Content Development and Monitoring Board (NCDMB), for alleged breach of local content laws.
NCDMB is the agency that regulates the patronage of local firms by international oil companies.
In a suit number HEK/96/2019, filed at the High Court of Akwa Ibom, Eket Judicial Division, the plaintiff, Divers International Ltd , through the lead counsel Nwabueze Onukogu, alleged that the NCDMB has breached the provisions of Nigerian Oil and Gas Industry Content Development Act,2010, which regulates patronage of local firms by international companies.
Joined in the suit as defendants are ExxonMobil, Boron Oil and Gas Ltd of United States of America and Subtech company from South Africa.
Onukogu further alleged that the Nigerian Development Content and Monitoring Board(NCDMB) has conspired with some international oil companies such as ExxonMobil to shortchanged Nigerian companies from benefiting from contracts award which could facilitate transfer of technology that would help indigenous firms to acquired needed skill to take over oil industry operations in Nigeria as envisaged in the local content Act, 2010.
The plaintiff claimed that Mobil producing Nigeria has awarded a contract titled “Diving , Topside and ROV’s in their operations field in Akwa Ibom to Broron Oil and Gas Ltd of United States of America in partnership with Subtech in South Africa at the rate of $90m dollars.
The plaintiff observed that the services would have been executed by local companies but the first defendant(NCDMB) recommended the third and fourth (Broron oil of United States and Subtech of South Africa)defendants to Mobil producing Nigeria for the award of the diving contract which the first defendant (Mobil producing Nigeria) obliged.
The plaintiff said such recommendation by Nigeria Content Development and Monitoring Board was a violation content laws of Nigeria which they supposed to protect, safeguard and implement for the benefit of local companies operating in the oil industry to protect them against foreign competitors .
In the writ of summons made available to our correspondent,the plaintiff is seeking for the court declaration that the defendants have breached the provisions of the Nigerian Oil and Gas Industry Content Development Act , 2010( NOGICD Act) as provided.
“There shall be exclusive consideration of Nigeria indigenous companies of which plaintiff is , and demonstrate ownership of equipment, Nigeria personnel and capacity to execute any any work to bid on land and contract services including Diving , ROVs and Topside as contained in the Act, ” he argued.
The plaintiff also prayed the court to award the sum of N100,000,000as damages in relief having established that the defendants have failed in their duty as enshrined in the law.
The plaintiff counsel also sought for an order of court compelling Mobil producing Nigeria to cancel an earlier contract award issued to CNS International, an Italian company providing the similar services in their oil field .
The case has been adjourned to 20th May, 2019 for hearing .
