Nigerian Oil and Gas Industry Content Development Act (No. 2 of 2010)

1. Application.

2. Nigerian content as management philosophy for project execution.

3. First consideration to be given to Nigerian operators.

4. Role of Nigerian Content Monitoring Board.

5. Promotion of measurable growth of Nigerian content.

6. Conformity of petroleum arrangements and other agreements

7. Submission of Nigerian content plan for all projects.

8. Certificate of Authorization.

9. Public review of Plan.

10. Contents of the Plan.

11. Minimum and specification of Nigerian content.

12. First consideration for Nigerian goods and services.

13. Content of the plan to contain details.

14. Nigerian content in bid Evaluation.

15. Full and fair opportunity for Nigerians.

16. Principal of bid Evaluation.

17. List of contracts to be submitted to the Board.

18. Submission of job forecasts, etc. to the Board.

19. Designation of contract for review.

20. Documents to be submitted to the Board during pre-qualification stage.

21. Documents to be submitted to the Board during bidders' list stage.

22. Documents to be submitted to the Board during award stage.

23. Designation and review of contracts.

24. Quarterly procurement report.

25. Establishment of Project Office.

26. Personnel for Local Office.

27. Office in community of operation.

28. First consideration for Employment and Training.

29. Submission of Employment and Training Plan.

30. Training of Nigerians. 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act

31. Requirement for succession Plan.

32. Allowance for expatriate position.

33. Approval of Board for application for Expatriates.

34. Requirement for Labour Clause.

35. Compliance by the operators.

36. Research and development regulations.

37. Programme for research and development.

38. Submission and content of Rand D Plan.

39. Report on Rand D plan.

40. Regulations for Training.

41. Regulations for further growth of indigenous capacity.

42. Regulations for registration with Nigerian professional bodies.

43. Programme for Technology transfer plan.

44. Submission of Technology transfer plan.

45. Support of Technology Transfer.

46. Technology Transfer Report.

47. Regulation to establish operations in Nigeria.

48. Fiscal incentives.

49. Insurance and Reinsurance Business.

50. Approval for offshore Insurance.

51. Legal Services.

52. Financial Services.

53. Prohibition of Importation of welded products.

54. Petroleum e-market place.

55. Establishment of Joint Qualification System.

56. Functions of the Joint Qualification System.

57. Setting up of Nigerian Content Consultative Forum.

58. Composition of Nigerian Content Consultative Forum.

59. Powers of NCMB to monitor implementation of this Act.

60. Requirements for submission of Nigerian Content Performance Report.

61. Content of performance Report.

62. Assessment and Verification of performance report.

63. Directives to facilitate reporting.

64. Access to facilitate for assessment and verification purposes.

65. Requirements for third party access and reporting.

66. Responsibility to communicate Nigerian content policies to contractors.

67. Responsibility of the Board for enlightenment on Nigerian content.

68. Offences and Penalties. PART II-ESTABLISHMENT OF THE NIGERIAN CONTENT MONITORING BOARD ,

69. Establishment of the Nigerian Content Monitoring Board.

70. Functions of the Board. Nigerian Oil and Gas Industry Content Development Act 2010 No. 2

71. Establishment of the Governing Council of the Board.

72. Composition of Council.

73. Appointment of Chairman and membership of the Council.

74. Status of appointment of Executive Secretary.

75. Powers of the Council.

76. Tenure of office.

77. Cessation of membership of the Council.

78. Replacement of membership.

79. Removal of members.

80. Remuneration of members.

81. Appointment of Executive Secretary, his functions and tenure.

82. Remuneration of the Executive Secretary.

83. Cessation of office.

84. Resignation of appointment.

85. Other staff.

86. Direct appointment and secondment.

87. Transfer of service.

88. Directorates.

89. Service in the Board. PART Ill-FINANCIAL PROVISIONS

90. Funds of the Board.

91. Budgetary and Estimates Report.

92. Gift to the Board.

93. Expenditure and Account.

94. Audit.

95. Acquisition of Land or interest in Land for Office use.

96. Legal Proceeding.

97. Indemnity of Officers.

98. Service of Documents.

99. Engagement of professionals and other Staff.

100. Powers of the Minister to give directive to the Board.

101. Regulations.

102. Review of the Schedule.

103. Savings and Transitional Provision.

104. Establishment of Nigerian Content Development Fund.

105. Enforcement of Compliance

106. Interpretation.

107. Citation. SCHEDULE NIGERIAN OIL AND GAS INDUSTRY CONTENT DEVELOPMENT ACT 2010 Act No. 2 AN ACT TO PROVIDE FOR THE DEVELOPMENT OF NIGERIAN CONTENT IN THE NIGERIAN OIL AND GAS INDUSTRY, NIGERIAN CONTENT PLAN, SUPERVISION, COORDINATION, MONITORING AND IMPLEMENTATION OF NIGERIAN CONTENT; AND FOR RELATED MATTERS. [22nd Day of April, 2010] Commence- men. ENACTED by the National Assembly of the Federal Republic of Nigeria- PART I-NIGERIAN CONTENT DEVELOPMENT IN OIL AND GAS INDUSTRY

1. Notwithstanding anything to the contrary contained in the Petroleum Act or in any other enactment or law, the provisions of this Act shall apply to Application all matters pertaining to Nigerian content in respect of all operations or Cap. PlO, transactions carried out in or connected with the Nigerian oil and gas industry. LFN 2004.

2. All regulatory authorities, operators, contractors, subcontractors, alliance partners and other entities involved in any project, operation, activity Nigerian or transaction in the Nigerian oil and gas industry shall consider Nigerian Content as content as an important element of their overall project development and Management Philosophy management philosophy for project execution. for Project

3.-(1) Nigerian independent operators shall be given first consideration Execution. in the award of oil blocks, oil field licences, oil lifting licences and in all First projects for which contract is to be awarded in the Nigerian oil and gas industry consideration subject to the fulfilment of such conditions as may be specified by the to be given Minister. to Nigerian operators. (2) There shall be exclusive consideration to Nigerian indigenous service companies which demonstrate ownership of equipment, Nigerian personnel and capacity to execute such work to bid on land and swamp operating areas of the Nigerian oil and gas industry for contracts and services contained in the Schedule to this Act. Schedule. (3) Compliance with the provisions of this Act and promotion of Nigerian content development shall be a major criterion for award of licences, permits and any other interest in bidding for Oil exploration, production, transportation and development or any other operations in Nigerian Oil and Gas industry.

4. The Nigerian Content Development and Monitoring Board ("the "Board") established in accordance with this Act shall make procedure that 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act Role of will guide, monitor, coordinate and implement the provisions of this Act. Nigerian Content Monitoring 5. The Board shall implement the provisions of this Act with a view to Board. ensuring a measurable and continuous growth of Nigerian content in all oil Promotion and gas arrangements, projects, operations, activities or transactions in the of Nigerian oil and gas industry. measurable growth of Nigerian 6. Upon the commencement of this Act, all subsequent oil and gas content. arrangements, agreements, contracts or memoranda of understanding relating Conformity to any operation or transaction in the Nigerian oil and gas industry shall be in of petroleum conformity with the provisions of this Act. arrangements and other agreements. 7. In the bidding for any licence, permit or interest and before carrying out any project in the Nigerian oil and gas industry, an operator shall submit Submission of Nigerian a Nigerian Content Plan ("the Plan") to the Board demonstrating compliance content plan with the Nigerian content requirements of this Act. for all projects.

8. The Board shall review and assess the plan and, if satisfied that the Certificate of plan complies with the provisions of this Act, issue a Certificate of Authorization Authorization ("the Certificate') to the operator for that project.

9. For the purposes of reviewing or assessing the plan, the Board may conduct a public review in relation to the exercise of any of its functions Public review of under this Act provided that any such review or assessment is completed and plan. certificate issued or denied within 30 days from the date of commencement of such review or assessment.

10.-(1) A plan shall contain provisions intended to ensure that- Content of (a) first consideration shall be given to services provided from within Plan. Nigeria and to goods manufactured in Nigeria; and (b) Nigerians shall be given first consideration for training and employment in the work programme for which the plan was submitted. (2) Any collective agreement entered into by the operator, project promoter or other body submitting the plan with any association of employees respecting terms and conditions of employment in the project shall contain provisions consistent with this section.

11. (1) As from the commencement of this Act, the minimum Nigerian content in any project to be executed in the Nigerian oil and gas industry Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 shall be consistent with the level set in Schedule to this Act. Minimum and (2) Where a project description is not specified in the Schedule to this Specification Act, the Board shall set the minimum content level for that project or project of Nigerian content. item pending the inclusion of the minimum content level for that project or project item through an amendment of the Schedule to this Act by the National Assembly. (3) All operators, alliance partners and contractors shall comply with the minimum Nigerian content for particular project item, service or product specification set out in the schedule to this Act (4) Notwithstanding the provisions of subsection (1) of this section, where there is inadequate capacity to any of the targets in the Schedule to this Act, the Minister may authorize the continued importation of the relevant Schedule items and such approval by the Minister shall not exceed 3 years from the commencement of this Act.

12. Subject to section 7 of this Act, the Nigerian Content Plan submitted to the Board by an operator shall contain a detailed plan, satisfactory to the Board, setting out how the operator and their contractors will give first First consideration to Nigerian goods and services, including specific examples consideration for Nigerian showing how first consideration is considered and assessed by the operator goods and in its evaluation of bids for goods and services required by the project. services.

13. The Nigerian content plan submitted to the Board by any operator or alliance partner shall contain detailed plan on how the operator or its alliance partner intend to ensure the use of locally manufactured goods where such Contents of goods meet the specifications of the industry. the plan to contain

14. All operators and project promoters shall consider Nigerian content details. when evaluating any bid where the bids are within 1 % of each other at commercial stage and the bid containing the highest level of Nigerian content Nigerian shall be selected provided the Nigerian content in the selected bid is at least content in 5% higher than its closest competitor. bid evaluation.

15. All operators and alliance partners shall maintain a bidding process for acquiring goods and services which shall give full and fair opportunity to Nigerian indigenous contractors and companies. Full and fair opportunity

16. The award of contract shall not be solely based on the principle of for the lowest bidder where a Nigerian indigenous company has capacity to Nigerians execute such job and the company shall not be disqualified exclusively on Principle of the basis that it is not the lowest financial bidder, provided the value does not bid exceed the lowest bid price by 10 percent. evaluation 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act

17.-(1) For all proposed projects, contracts, subcontracts and purchase orders estimated by operator to be in excess of $1 ,000,000 (USD), the operator List of shall provide to the Board for approval, advertisements, pre-qualification contracts to criteria, technical bid documents, technical evaluation criteria and the proposed be submitted to the Board. bidders lists. (2) The operator or project promoter shall submit sufficient information with the notifications to enable the Board assess the subject matter and to be satisfied that the requirements for Nigerian content have been complied with by the operator or project promoter.

18. (1) The operators shall submit to the Board, 30 days prior to the first day of each quarter, a list of all contracts, subcontracts and purchase orders Submission exceeding $1,000,000 (USD) which will be bided or executed in the upcoming of job quarter. Forecasts, e.t.c. to (2) For each contract, subcontract and purchase order, the list shall Board, provide - (a) a description of the service or item to be contracted or purchased (material and equipment specifications shall be provided upon request) ; (b) estimated value of contract, subcontract or purchase order; (c) the Invitation To Tender (ITT) issuance date, ITT closure date and award date; and (d) any other information requested by the Board for the purposes of implementing the provisions of this Act.

19. Subject to section 17 of this Act, the Board shall advise the operator, by the first day of each quarter, which contracts and sub-contracts have been Designation designated by the Board for review and shall advise the operator of the outcome of contract of such contract review. for review.

20. Prior to issuing of adverts or pre-qualification notification to prospective bidders, the operator or the project promoter shall submit to the Document to Board the following for review and approval- be submitted (a) a description of the scope of work; to the Board during pre- (b) a copy of the pre-qualification notification, if these documents differ qualification from the standard pre-qualification notification previously reviewed by the stage. Board; (c) a list of companies, indicating locations of head offices, to whom questionnaires shall be issued ; and (d) anticipated dates for closure of prequalification and commencement of technical evaluation, issuance of an Invitation To Tender (ITT). Nigerian Oil and Gas Industry Content Development Act 2010 No. 2

21. For the purposes of compiling a bidding list for any project, the Document to operator, project promoter or alliance partner shall submit to the Board, prior be submitted to issuing an Invitation To Tender (ITT)- to the Board during (a) a list of bidders; bidders' list stage. (b) a copy of the Invitation To Tender (ITT) (the Board shall advise the operator of its requirements in this regard on a case by case basis) ; (c) a description of corporate ownership (main shareholders by percentage) of bidders; . (d) location of any Nigerian based office, plant or facility; (e) anticipated dates for closure of bids and award of contract or purchase order; and (f) any other information requested by the Board.

22. Prior to the award of contract, subcontract or purchase order to the Document to be submitted selected bidder, the operator shall submit to the Board- to the Board (a) the name of the selected contractor or vendor; during award stage. (b) a list of designated sub-contractors or sub-vendors; (c) where applicable, a list of proposed sub-suppliers; (d) for construction or service contracts ; the estimated Nigerian employment (in person-hours) ; (e) contract or purchase order commencement and completion dates; (f) award Notification Form signed by an appropriate official of the operator ; and (g) statement of award rationale (evaluation of bids) showing- (i) percentage difference in price between selected bidder and each bid, (ii) a primary location of work associated with each bidder, (iii) estimates of Nigerian content associated with the bid of each bidder calculated in accordance with the definition of Nigerian content to be provided by the Board, and (iv) other information relevant to the evaluation of bidders including where applicable, a summary of the technical, commercial! and Nigerian content aspects of the bid evaluations.

23. Upon assessment of the documentation received in compliance with Designation section 19 of this Act, the Board shall advise the operator, within 10 days, and review which contracts, subcontracts and purchase orders have been designated by of contracts. the Board for review, and the designated contracts, subcontracts and purchase orders shall be reviewed to the satisfaction of the Board. 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act

24.-(1) The operator shall submit to the Board, within 30 days at the Quarterly end of each quarter, a listing of all contracts, subcontracts and purchase orders Procurement exceeding $1,000,000 (USD) or such other limit as the Board may determine, report awarded in the previous quarter. (2) This listing shall provide- (a) a list of all items and services; (b) value of contract or purchase order; (c) name of successful contractor or vendor; (d) a primary location of work; (e) estimates of Nigerian content; (f) commencement and completion date; and (g) any other information required by the Board for the purposes of implementing the provisions of this Act.

25. Where applicable, before carrying out any work or activity in Nigeria, Establishment of project the operator or other body submitting a plan shall establish in the Catchment office. Area where the project is to be located, a project office where project management and procurement decision making are to take place, to the satisfaction of the board Personnel 26. The operator shall locate, within the project office, personnel with For Local Office. decision- making authority in accordance with a list of personnel to be approved by the Board. Office in 27. Subject to section 25 of this Act, the Board shall have powers to community require any operator to maintain an office in a Community where the operator of operation. has significant operations. First 28.-(1) Subject to section 10(1)(b) of this Act, Nigerians shall be given consideration the first consideration for employment and training in any project executed for by any operator or project promoter in the Nigerian oil and gas industry. employment and training (2) The Board shall ensure that the operator or project promoter maintains a reasonable number of personnel from areas it has significant operation. Submission 29. The plan submitted by any operator or project promoter for any of project shall contain an Employment and Training Plan (E and T Plan) which employment shall include- and training (a) an outline of the- plan. (i) hiring and training needs of the operator or project promoter and operator's major contractors with a breakdown of the skills needed, (ii) anticipated skill shortages in the Nigerian labour force, (iii) project specific training requirements, and (iv) anticipated expenditures that will be made directly by the operator in Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 implementing the E and T Plan as a forecasted and actual expenditure; (b) a time frame for employment opportunities for each phase of project development and operations, to enable members of the Nigerian workforce to prepare themselves for such opportunities; (c) the operator or project promoter shall- report to the Board quarterly on employment and training activities for the reporting period and compare this to the E and T Plan and the report shall include- (i) number of new employees hired during the year, (ii) their place of residence at the time of hiring, and (iii) their employment status; and (d) any other information required by the Board for the purposes of implementing the provisions of this Act.

30. Where Nigerians are not employed because of their lack of training, Training of the operator shall ensure, to the satisfaction of the Board, that every reasonable Nigerians. effort is made within a reasonable time to supply such training locally or elsewhere and such effort and the procedure for its execution shall be contained in the operator's E and T Plan.

31.-(1) For each of its operations, the operator shall submit to the Requirement for Board a succession plan for any position not held by Nigerians and the plan succession shall provide for Nigerians to understudy each incumbent expatriate for a plan. maximum period of four years and at the end of the four year period the position shall become Nigerianised. (2) All indigenous (Nigerianised) positions shall attract salaries, wages and benefits as provided for in the operators' conditions of service for Nigerian employees. (3) All conditions of service and staff demography for all operators shall be made available to the Board.

32. For each of its operations, an operator or project promoter may retain Allowance a maximum of five per cent of management positions as may be approved by for the Board as expatriate positions to take care of investor interests. expatriate position

33. (1) Upon the commencement of this Act, the operators shall make Approval of application to, and receive the approval of, the Board before making any Board for application for expatriate quota to the Ministry of Internal Affairs or any application other agency or Ministry of the Federal Government. for (2) The application shall be detailed and shall include- Expatriates. (a) job Titles; (b)description of responsibilities; Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 (c) the duration of the proposed employment in Nigeria; and (d) any other information required by the Board for purposes of implementing the provision of this Act.

34. Notwithstanding the provisions of the Schedule to this Act, all projects or contracts whose total budget exceeds $100 million (USD) shall contain a "Labour Clause" mandating the use of a minimum percentage of Requirement Nigerian labour in specific cadres as may be stipulated by the Board. for Labour Clause.

35. All operators and companies operating in the Nigerian oil and gas industry shall employ only Nigerians in their junior and intermediate cadre Schedule or any other corresponding grades designated by the operator or company. Compliance 36. The Minister shall make regulations with requirements and targets by the for the growth of research and development in the Nigerian oil and gas industry. operators.

37. For every project for which a plan is submitted, an operator shall Research and carry out a programme and make expenditure, to the satisfaction of the Board, development for the promotion of education, attachments, training, research and regulations. development in Nigeria in relation to its work programme and activities. Programme 38.-(1) The operator shall submit to the Board and update, every six for research months, the operator's Research and Development Plan (R and D Plan). and development. (2) The Rand D Plan shall- Submission (a) outline a revolving three to five year plan for oil and gas related and content research and development initiatives to be undertaken in Nigeria, together of R and D with a breakdown of the expected expenditures that will be made in plan. implementing the Rand D Plan; and (b) provide for public calls for proposals for research and development initiatives associated with the operator's activities.

39. The operator shall report to the Board, on quarterly basis, with respect to its Rand D activities and the Board shall compare these activities to the operators Rand D Plan. Report on R 40.-(1) The Minister shall make regulations establishing the minimum and D plan. standards, facilities, personnel and technology for training in the oil and gas industry. Regulations for training. (2) The regulations shall specify modalities for involving operators as partners in training and development.

41.-(1) The Minister shall make regulations setting out targets to ensure- (a) full utilization and steady growth of indigenous companies engaged Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 in exploration; Regulations (b) seismic data processing; for further (c) engineering design; growth of (d) reservoir studies; indigenous (e) manufacturing and fabrication of equipment; and capacity. (f) other facilities as well as the provisions of other support services for the Nigeria oil and gas industry. (2) International or multinational companies working through their Nigerian subsidiaries shall demonstrate that a minimum of 50% of the equipment deployed for execution of work are owned by the Nigerian subsidiaries.

42. The Minister shall make regulations which shall require any operator or company or its professional employees engaged in the provision of engineering or other professional services in the Nigerian oil and gas industry to be registered with the relevant professional bodies in Nigeria. Regulations for registration with

43. Each operator shall carry out a programme in accordance with the Nigerian professional country's own plans and priorities, to the satisfaction of the Board, for the bodies. promotion of technology transfer to Nigeria in relation to its oil and gas activities. Programme for

44. The operator shall submit to the Board annually a plan, satisfactory technology to the Board, setting out a programme of planned initiatives aimed at promoting transfer the effective transfer of technologies from the operator and alliance partners plan. to Nigerian individuals and companies. Submission

45. The operator shall give full and effective support to technology of transfer by encouraging and facilitating the formation of joint ventures, technology partnering and the development of licensing agreements between Nigerian transfer plan. and foreign contractors and service or supplier companies agreements for all Support of such joint ventures or alliances shall meet the requirements of Nigerian content technology development to the satisfaction of the Board. transfer.

46. The operator or project promoter shall submit a report to the Board annually describing its technology transfer initiatives and their results and the Minister shall make regulations setting targets on the number and type of such joint venture or alliances to be achieved for each project.

47. The Minister shall make regulations which shall require any operator Technology transfer to invest in or set up a facility, factory, production units or other operations report. within Nigeria for the purposes of carrying out any production, manufacturing 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act Regulations or for providing a service otherwise imported into Nigeria. to establish operations in 48. The Minister shall consult with the relevant arms of Government on Nigeria. appropriate fiscal framework and tax incentives for foreign and indigenous companies which establish facilities, factories, production units or other Fiscal operations in Nigeria for purposes of carrying out production, manufacturing incentives or for providing services and goods otherwise imported into Nigeria.

49.-(1) All operators, project promoters, alliance partners and Nigerian indigenous companies engaged in any form of business, operations or contract in the Nigerian oil and gas industry, shall insure all insurable risks related to Insurance its oil and gas business, operations or contracts with an insurance company, and through an insurance broker registered in Nigeria under the provisions of reinsurance Insurance Act as amended. business. Cap. (2) Each operator in subsection (1) of this section shall submit to the 117 LFN Board, a list of all insurance companies and insurance brokers through which 2004. insurance covers were obtained in the past six months, the class of insurance cover obtained and the expenditures made by the operator; (3) The insurance programme shall include- (a) a comprehensive report of- (i) insurance covers obtained in the past six months of all insurance by expenditure, (ii) a forecast of insurance covers required during the next six months, and (iii) the projected expenditure for the covers; Days of (b) a list of- Election. (i) all insurance companies brokers through which insurance covers were obtained in the past six months, (ii) the class of insurance cover obtained, and (iii) the expenditures made by the operator; and (c) the annual insurance premium budget for the past one year in Naira and foreign currencies.

50. No insurance risk in the Nigerian oil and gas industry shall be placed offshore without the written approval of the National Insurance Commission which shall ensure that Nigerian local capacity has been fully exhausted. Approval for 51.-(1) All operators, contractors and other entities engaged in any offshore operation, business or transaction in the Nigerian oil and gas industry insurance. requiring legal services shall retain only the services of a Nigerian legal Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 practitioner or a firm of Nigerian legal practitioners whose office is located Legal in any part of Nigeria. Services (2) All operators shall submit to the Board, every six months, its Legal Services Plan (LSP). (3) The LSP shall include- (a) comprehensive report on;- (i) legal services utilized in the past six months by expenditure, (ii) a forecast of legal services required during the next six months, and (iii) the projected expenditure for the services; (b) a list of- (i) external solicitors utilized for legal services in the past six months, (ii) the nature of work done, and (iii) the expenditure made by the operator; and (c) the annual legal services budget for the past one year in Naira and foreign currencies.

52.-(1) All operators, contractors and any other entity engaged in any operation, business or transaction in the Nigerian oil and gas industry requiring financial services shall retain only the services of Nigerian financial institutions or organizations, except where, to the satisfaction of Financial the Board, this is impracticable. Services (2) All operators shall submit to the Board, every six months it's Financial Services Plan (FSP). (3) The FSP shall include- (a) financial services utilized in the past six months by expenditure; (b) a forecast of financial services required during the next six months; (c) the projected expenditure for the services; (d) A list of - (i) financial services utilized in past six months, (ii) the nature of financial services provided, and (iii) the expenditure for financial services; (e) a list of- (i) financial services utilized in the past six months, (ii) the nature of financial services provided, and (iii) the expenditure for financial services made by the operator or its main contractors; (f) all operators, contractors and sub-contractors shall maintain a bank account in Nigeria in which it shall retain a minimum of 10 per cent of its total revenue accruing from its Nigerian operations. . 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act .

53. As from the commencement of this Act, all operators, project promoters, contractors and any other entity engaged in the Nigerian oil and gas industry shall carry out all fabrication and welding activities in the country. Prohibition of importation

54. The Board shall establish an oil and gas e-marketplace which shall- of welded products. (a) provide a virtual platform to facilitate the transactions required for Petroleum e- efficient delivery of goods and services in the industry; marketplace. (b) provide functional interface with the Joint Qualification System and provide a universal and transparent governance structure drawn from industry stakeholder ; (c) perform all other functions, roles and responsibilities to be set out in the regulations to be made by the Minister in accordance with the provisions of this Act. (d) track and monitor the Nigerian content performance of operators, project promoters as well as suppliers and service providers with the provision of relevant feedback.

55. The Board shall establish, maintain and operate a Joint Qualification System (JQS) in consultation with industry stakeholders which shall be administered in accordance with provisions set out in the Regulations to be Establishment made by the Minister in accordance with the provisions of this Act. of Joint Qualification 56. The Joint Qualification System shall constitute an industry databank System. of available capabilities and shall be used for - (a) sole system for Nigerian content registration and pre-qualification of contractors in the industry ; Functions of (b) verification of contractors' capacities and capabilities; the Joint Qualification (c) evaluation of application of Nigerian content in the operations of oil System. companies and contractors; (d) data base for national skills development pool; and (e) ranking and categorization of old service companies based on capabilities and Nigerian content.

57. The Board shall set up a consultative body to be known as the Nigerian Content Consultative Forum (NCCF) which shall provide a platform for information sharing and collaboration in the Nigerian oil and gas industry with respect to- Setting up of (a) upcoming projects in the oil and gas industry; Nigerian Content (b) information on available local capabilities; and Consultative (c) other policy proposals that may be relevant to Nigerian content Forum development. Nigerian Oil and Gas Industry Content Development Act 2010 No. 2

58. The Nigerien Content Consultative Forum shall be made up of key industry stakeholders, government and regulatory agencies and representatives from the following sectors- (a) fabrication; Composition (b) engineering; of Nigerian (c) finance services, legal and insurance; Content (d) shipping and logistics; Consultative Forum. (e) materials and manufacturing; (f) information and communication technology; (g) petroleum technology association of Nigeria; (h) education and training; and (i) any other professional services nominated by the Board.

59. The Nigerian Content Monitoring Board shall undertake an effective monitoring of the implementation of the provisions of this Act. Powers of NCMB to monitor

60. Within sixty days of the beginning of each year, each operator shall implementa- submit to the Board their annual Nigerian Content Performance Report tion of this Act. covering all its projects and activities for the year under review. Requirements for submission of Nigerian

61. Subject to section 60, the report shall specify by category of Content expenditure the Nigerian content on both a current and cumulative cost basis Performance and shall set out- Report. (a) employment achievement in terms of hours or days worked by Content of Nigerian and foreign workers and their status; and performance report. (b) procurement achievement in terms of quantity, tonnage of locally manufactured materials and materials of foreign origin.

62. The Board shall undertake regular assessment and verification of the Nigerian Content Performance Report filed by all operators in compliance with the provisions of this Act as may be considered appropriate by the Board. Assessment

63. The Board shall issue directives to operators, contractors and other and verification entities or persons in order to develop a process to facilitate reporting of of activities relating to any aspect of this Act. performance report 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act Directives to 64. For the purposes of assessment and verification, all operators and facilitate contractors shall provide the Board or its designated agent with access to reporting. their facilities and all documentation and information required for substantiating the Nigerian content reported. Access to facilities for assessment 65. The operator shall ensure that its partners, contractors and and subcontractors are contractually bound to report Nigerian content information verification to the operator and, if so requested by the Board, directly to the Board, and to purposes. allow the Board or its designated agent access to their records for the purposes of assessment and verification of Nigerian content information reported to Requirements for third the operator or the Board. party access 66. The operators shall effectively communicate its Nigerian content and reporting policies and procedures to its contractors and subcontractors and to monitor and enforce their compliance. Responsibility to communicate Nigerian content 67. The Board shall conduct workshops, conferences, seminars, symposia policies to and any other public forum considered as appropriate for the benefit of contractors. operators, contractors, the public and other stake holders to enhance the Responsibility implementation of the provisions of this Act. of Board for

68. An operator, contractor or sub-contractor who carries out any project enlightenment on Nigerian contrary to the provisions of this Act, commits an offence and is liable upon content. conviction to a fine of five per cent of the project sum for each project in which the offence is committed or cancellation of the project. Offences and PART II-ESTABLISHMENT OF THE NIGERIAN CONTENT MONITORING BOARD penalties

69.-(1) There is established the Nigerian Content Monitoring Board (in this Act referred to as "the Board") which shall have the functions and powers conferred on it by this Act. Establishment (2) The Board- of the (a) shall be a body corporate with perpetual succession and a common Nigerian seal; and Content (b) may sue and be sued in its corporate name. Monitoring Board. 70. The functions of the Board shall be to- (a) implement the provisions of this Act; (b) implement the regulations made by the Minister in relation to any Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 aspect of this Act; Functions of the Board (c) supervise, coordinate, administer, monitor and manage the development of Nigerian content in the Nigerian oil and gas industry; (d) supervise, coordinate, administer and monitor the implementation and development of Nigerian content as specified in the Schedule to this Act in the operations of operators, contractors and all other entities in the Nigerian oil and gas industry; Schedule (e) appraise, evaluate and approve the Nigerian content plans and reports submitted to the Board in compliance with the provisions of this Act; (f) award Certificate of Authorization and conduct reviews of the Nigerian content plans and reports submitted to the Board in compliance with the provisions of this Act; (g) administer and operate i.lle e-market place and Joint Qualifications Systems set up in accordance with the provisions of this Act; (h) assist local contractors and Nigerian companies to develop their capabilities and capacities to further the attainment of the goal of developing Nigerian content in the Nigerian oil and gas industry; (i) make procedures to guide the implementation of this Act and ensure compliance with all the provisions of this Act; (j) monitor and coordinate the Nigerian content performance of all operators in accordance with the provisions of this Act; (k) make auditing procedures and conduct regular audits for the purposes of monitoring and implementing compliances with the provisions of this Act; (l) provide guidelines, definitions and measurement of Nigerian content and Nigerian content indicator to be utilized throughout the industry; (m) conduct studies, researches and investigations that may further the attainment of the goal of developing Nigerian content in the Nigerian oil and gas industry ; (n) organize conferences, workshops, seminars, symposia, trainings, road shows and other public education fora to further the attainment of the goal of developing Nigerian content in the Nigerian oil and gas industry ; (o) delegate any of its functions to any agent or operative appointed by the Council ; and (p) do legally anything necessary to be done to facilitate the carrying out of its functions.

71.-(1) There is established for the Board the Governing Council (in this Act referred to as the "Council") which shall conduct the affairs of the Board. 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act Establishment (2) The Head Office of the Council and the Board shall be located in of the any of the oil or gas producing States of the Federation. Governing Council of (3) The Council may establish branch offices of the Board in any of the the Board. gas or oil producing States of the Federation. Composition 72. The Council shall consist of- of the Council. (a) a Chairman who shall be the Minister of Petroleum Resources; (b) a representative of- (i) Nigerian National Petroleum Corporation, (ii) the agency in charge of technical regulation of the industry, (iii) Ministry of Petroleum Resources, (iv) Petroleum Technology Association of Nigeria, (v) Nigerian Content Consultative Forum, (vi) Council of Registered Engineers of Nigeria, (vii) National Insurance Commission; and (c) Executive Secretary who shall be the Secretary of the Council. Appointment

73.-(1) The Chairman and members of the Council shall be appointed of Chairman and by the President and shall be persons of proven integrity and ability. Membership of the (2) The membership of the Council shall be on part time basis. Council. Status of

74. The Executive Secretary shall be on full time status. appointment of Executive Secretary. Powers of 75.-(4) The Council shall have power to- the Council. (a) manage and superintend the affairs of the Board; (b) make rules and regulations for the proper functioning of the Board; (c) employ and pay the staff of the Board appropriate remuneration commensurate in scale with that of staff in organizations of similar stature; and (d) enter into any negotiation, agreement and contractual relationship as may be necessary or expedient for the discharge of the functions of the Board.

76. Subject to the provisions of section 75 of this Act, the Chairman and members of the Council shall each hold office- Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 (a) for a term of four years and may be re-appointed for a further term of four years and no more ; and Tenure of office. (b) on such terms and conditions as may be specified in their letters of appointment.

77. A person shall cease to hold office as a member of the Council if - (a) he dies; (b) he becomes bankrupt; Cessation of (c) he is convicted of a felony or any offence involving dishonesty or membership fraud; of Council. (d) he becomes of unsound mind or is incapable for any reason of carrying out his duties; (e) he is guilty of a serious misconduct in relation to his duties; (f) in the case of a person possessed of a professional qualification, he is disqualified or suspended, other than at his own request, from practising his profession in any part of the world by an order of a competent authority made in respect of that member; or (g) he resigns his appointment by written notice under his hand to the President.

78. Where a member ceases to hold office for any reason before the expiration of his term, another person representing the same interest as that member shall be appointed in his place to finish the unexpired residue of the term. Replacement

79. The President may remove a member if he is satisfied that it is not of in the interest of the Board or the public that the member continues in that membership. office.

80. A member of the Council shall be paid such allowances and expenses Removal of as may be determined by Revenue Mobilization, Allocation and Fiscal members. Commission using the scale applicable in Nigeria oil and gas industry.

81.-(1) There shall be an Executive Secretary for the Board, who Remuneration shall be appointed by the President. of members (2)The Executive Secretary shall be- Appointment of (a) the Chief Executive and Accounting Officer of the Board; Executive (b) responsible to the Council for the execution of the policies and the Secretary, administration of the daily affairs of the Board; and his function and tenure (c) a graduate of at least 15 years with cognate experience in the Nigeria oil or gas industry. (3) The Executive Secretary- 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act (a) shall be appointed for a term of four years in the first instance; and (b) may be appointed for a further term of four years and no more. Tenure of 82. The Executive Secretary shall be paid such remuneration as may be Office specified in his letter of appointment or as determined by the Revenue Mobilization, Allocation and Fiscal Commission using the scale applicable in the Nigeria oil and gas industry. Remuneration

83. The Executive Secretary shall cease to hold office if any of the of the conditions specified in section 77 pertaining to cessation of membership of Executive the Council applies to him. Secretary,

84. The Executive Secretary may resign his appointment by a written Cessation of notice under his hand delivered to the President. office. Resignation

85. The Council may appoint for the Board such number of employees of as may in the opinion of the Council be expedient and necessary for the proper appointment and efficient performance of the functions of the Board and shall pay them Other staff remunerations and allowances as it determines using the scale applicable in the Nigeria oil and gas industry.

86. The Council shall have power to appoint for the Board either directly or on secondment from the Public Service of the Federation, such number of employees as may, in the opinion of the Council, be required to assist the Board in the discharge of any of its functions under this Act. Direct 87. The person seconded under Section 85 may elect to be transferred appointment to the service of the Board and the previous service he may have rendered in and the public service shall count as service to the Board for the purpose of any secondment pension subsequently payable by the Board. Transfer of 88. There shall be established in the head office of the Board- service (a) the Directorate of Finance and Personnel Management; (b) the Directorate of Planning, Research and Statistics; (c) the Directorate of Monitoring and Evaluation; Directorates. (d) the Directorate of Legal Services; and (e) any other Directorate which the Council may establish.

89.-(1) The Service in the Board shall be approved service for the purposes of the Pension Reform Act. (2) The officers and other persons employed in the Board shall be entitled Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 to pension, gratuities and other retirement benefits as are enjoyed by persons Service in holding equivalent ranks in the Civil Service of the Federation. the Board. (3) Nothing in subsections (1) and (2) of this section shall prevent the Act No. 2, appointment of a person to any office- on terms which preclude the grant of 2004 pension and gratuity in respect of that office. Funds of the

90.-(1) The Board shall establish and maintain a fund to which all Board monies accruing to it shall be paid into or from which shall be defrayed all expenditure incurred by the Board. (2) The Fund of the Board shall consist of- (a) all subventions and budgetary allocations provided by the Federal Government; (b) sums accruing to the Board by way of donations, gifts, grants, endowment, bequest or otherwise; (c) interest and revenue accruing from savings and investments made by the Board; (d) loans, which may be required from time to time for the objects of the Board, provided that the Board shall not, without the prior approval of the President, borrow money in compliance with the provisions of the Fiscal Act No. 31 Responsibility Act; and of 2007. (e) other revenues accruing to the board from any other source.

91. The Council shall, not later than 30th September of each year, submit to the National Assembly, through the Minister, an estimate of the projected expenditure of the Board during the next succeeding year and shall include a copy of the audited accounts of that year and a copy of the auditor's report. Budgetary

92.-(1) The Board may accept gifts of money, land or other property and estimates on such terms and conditions, if any, as may be specified by the person or report. organization making the gift. Gift to the (2) The Board shall not accept any gift if the conditions attached thereto Board are inconsistent with the functions of the Board under this Act.

93. The Council shall approve any expenditure of the Board and shall- (a) issue proper accounts and records of the transactions and affairs of the Board and ensure that all expenditure is duly authorized; (b) prepare in respect of each financial year, a statement of account in Expenditure and account such form as the Auditor-General may direct.

94. The audit of the council shall be in accordance with the provisions 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act of the Constitution of the Federal Republic of Nigeria, 1999.

95.-(1) For the purpose of providing offices and premises necessary Audit for the performance of its functions under this Act, the Board may, subject to the Land Use Act- Acquisition of land or (a) purchase or lease any interest in land or other property; and interest in (b) construct offices and premises, equip and maintain same. land for office use. (2) The Board may, subject to the Land Use Act, sell or lease out any Cap. L5 office or premises held by it, which office or premises is no longer required LFN.2004. for the performance of its functions under this Act.

96. The provisions of the Public Officer's Protection Act shall apply in relation to any suit instituted against any officer or employee of the Board in his capacity as such. Legal 97. A member of the Council, the Executive Secretary, any officer or proceeding employee of the Board shall be indemnified out of the assets of the Board Cp P41 against any proceeding, whether civil or criminal, in which judgment is given LFN, 2004. in his favour or in which he is acquitted, if any such proceeding is brought against him in his capacity as a member, Executive Secretary, officer or Indemnity of employee of the Board. officers.

98. A notice, summons or other document required or authorized to be Service of served upon the Board under this Act or any other law or enactment may be documents. served by delivering it to the Executive Secretary or by sending it by registered post and addressed to the Executive Secretary at the head office of the Board.

99. The Executive Secretary may with the approval of the Council engage persons with knowledge or experience in Nigerian content development or in Engagement of professionals matters relevant to the functions of the Board to assist the Board in the and other performance of its functions. staff.

100. The Minister may issue to the Board directives in relation to Power of the Nigerian content development with respect to the application, administration Minister to and implementation of this Act. give directive to the Board.

101.-(1) The Minister shall make regulations generally for the purpose Registration. of carrying out or giving effect to the provisions of this Act. (2) The Minister shall conduct a review of the Schedule to this Act every two years with a view to ensuring a measurable and continuous growth in Nigerian content in all projects, operations, activities and transactions in the Nigerian oil and gas industry. Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 (3) The Council shall make standing orders regulating its proceedings Schedule. or those of its standing committees in consultation with the Minister.

102. Subject to the approval of the Minister, the Board shall conduct a review of the Schedule to this Act at such intervals as it may determine but not later than every two years with a view to ensuring a measurable and continuous growth in Nigerian content in all projects, operations, activities and transactions in the Nigerian oil and gas industry for onward transmission to the National Assembly. Review of the

103. Upon the commencement of this Act, all functions and powers Schedule. conferred on any agency or department of the Federal Government of Nigeria to carry out the implementation of Nigerian content development or policy in the Nigerian oil and gas industry by any law or enactment is hereby transferred to the Nigerian Content Monitoring Board established under this Act. Savings and

104.-(1) A Fund to be known as the Nigerian Content Development transitional provision. Fund (the "Fund") is established for purposes of funding the implementation of Nigerian content development in the Nigeria oil and gas industry. (2) The sum of one per cent of every contract awarded to any operator, contractor, subcontractor, alliance partner or any other entity involved in any Establishment project, operation, activity or transaction in the upstream sector of the Nigeria of Nigerian Content oil and gas industry shall be deducted at source and paid into the Fund. Development Fund. (3) The Fund shall be managed by the Nigerian Content Development Board and employed for projects, programmes, and activities directed at increasing Nigerian content in the oil and gas industry.

105. The Nigerian Content Monitoring Board in conjunction with NIMASA shall have powers to enforce compliance with relevant sections of Coastal and Inland Shipping (Cabotage) Act in relation to matters pertaining to Nigerian content development.

106. In this Act- Enforcement "Joint Qualification System" means the industry databank of available of capacities and capabilities in the Nigerian oil and gas industry; compliance Act No 5,2003 "Labour Clause" means a clause mandating the use of a minimum percentage of Nigerian Labour in professional cadres in all contracts awarded in the Nigerian petroleum industry above a threshold value as stipulated by Interpreta- the Minister from time to time; tion "Minister" means the Minister of Petroleum Resources; "Nigerian Company" means a company formed and registered in Nigeria in accordance with the provision of Companies and Allied Matters Act with not less than 51 % equity shares by Nigerians; . . 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act "NNPC' means Nigeria National Petroleum Corporation; "NNPC Joint Ventures Partners" means oil companies that executed various petroleum agreements with NNPC ; "Nigerian Content" means the quantum of composite value added to or created in the Nigerian economy by a systematic development of capacity and capabilities through the deliberate utilization of Nigerian human, material resources and services in the Nigerian oil and gas industry; "Nigerian Content Indicator" means a percentage rating of a company based on specific criteria defined on the basis of values ascribed to each criterion; "Nigerian Oil and Gas Industry" means all activities connected with the exploration, development, exploitation, transportation and sale of Nigerian oil and gas resources including upstream and downstream oil and gas operations ; . "Operator" means the Nigeria National Petroleum Company (NNPC), its subsidiaries and joint venture partners and any Nigerian, foreign or international oil and gas company operating in the Nigerian oil and gas industry under any petroleum arrangement; "Partner" means any foreign company working on any project in partnership or as major contractor to an operator; "Plan" means a Nigerian content plan submitted in compliance with any aspect of this Act; "Oil and Gas e-market Place" means a virtual platform for buyers and sellers of goods and services in the oil and gas industry that allows for speedy and transparent transactions. Citation. 107. This Act may be cited as the Nigerian Oil and Gas Industry Content Development Act, 2010. SCHEDULE Sections 3(2), 11(1), (2), (3) and (4),34 and 70(d) CODE DESCRIPTION NIGERIAN CONTENT (NC) LEVEL 2010 No 2 Nigerian Oil and Gas Industry Content Development Act FEED AND DETAILED ENGINEERING AND OTHER ENGINEERING SERVICES Description NC% Measured Unit FEED and Detailed engineering on Onshore facilities , 90% Man-Hour FEED and Detailed engineering on Offshore facilities- Shallow Water 90% Man-Hour FE.ED and Detailed engineering on LNG facility 50% Man-Hour FEED and Detailed engineering on Gas gathering Facilities 90% Man-Hour FEED and Detailed engineering on Deep offshore facilities-Hull and topside modules 80% Man-Hour FEED and Detailed engineering on Deep offshore Floating concrete structure 80% Man-Hour FABRICATION AND CONSTRUCTION Description NC% Measured Unit Terminal/Oil Movement Systems 80% Volume Drilling Modules/Packages 75% Tonnage Piles, Anchors, Buoys, Jackets, Bridges, Flare Booms, Storage Tanks, Pressure Vessels 80% Tonnage Umbilical 60% Tonnage Topside module (process modules and storage modules) 50% Tonnage Accommodation module 70% Tonnage Subsea Systems 60% Tonnage Pipeline Systems 100% Tonnage Risers 100% Tonnage Utilities module/packages 50% Tonnage MATERIALS AND PROCUREMENT Measured Description NC% Unit 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act Steel plates, Flat Sheets, Sections 100% Tonnage Steel Pipes 100% Tonnage Low Voltage Cables 90% Length High Voltage Cables 45% Length Valves 60% Number Drilling mud-Baryte, Bentonite 60% Tonnage Cement (Portland) 80% Tonnage Cement (Hydraulic) 60% Tonnage Heat exchangers 50% Number Steel Ropes 60% Tonnage Protective paints 60% Litres Glass Reinforced Epoxy (GRE) pipes 60% Tonnage WELL AND DRILLING SERVICES/PETROLEUM TECHNOLOGY Description NC% Measured Unit Reservoir Services 75% Spend Well completion services (permanent gauges and intelligent wells) 80% Spend Wire line services (electric open holes, electric cased hole, slick line) 45% Spend Logging While Drilling (LWD) services 75% Man-Hour Measurement While Drilling (MWD) (direction and inclination/Gamma ray) 90% Man-Hour Production drilling service 85% Man-Hour Performance services (T and P) 90% Man-Hour 2D Seismic data acquisition services 85% Length Well Overhauling/Stimulation Services 85% Man-Hour Wellhead Services 85% Man-Hour Directional Surveying Services 100% Man-Hour Cutting Injections/Cutting Disposal Services 100% Man-Hour Recutting Inspection Services 85% Man-Hour Cased Hole Logging Services (Gyro, Perforation, Gauges, Gyro, PLT, Perforation, PLT, Gauges) 90% Man-Hour Well Watch Services 70% Man-Hour Cement service 75% Man-Hour Coiled Tubing Services 75% Man-Hour Pumping Services 95% Man-Hour Fluid/Bottom Hole Sampling Services 80% Man-Hour OCTS Services (Cleaning, hard banding, recutting, rethreading, storage) 95% Man-Hour Well Crisis Management Services 90% Man-Hour Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 Directional Drilling Services 90% Man-Hour Other Drilling Services 80% Man-Hour Petro physical Interpretation Services 75% Volume/ Man-hour Extended Well Test/Early Production Services including Provision of Floating or Jack up Production Unit 50% Spend Provision of all Catering, Cleaning, Office and Security Service at Location/Platform 80% Spend Rental of Drill Pipe 75% Spend Electric Open Hole 45% Spend Electric ceased Holes 100% Spend Slick line 100% Spend Well head Safety panels 100% Spend CHEMICAL: Drilling, process, Maintenance 90% Spend RESEARCH AND DEVELOPMENT SERVICES (R AND D-RELATED TO OPERATOR'S IN- COUNTRY Description NC % Measured Unit Engineering Studies - Reservoir, Facilities, Drilling etc. 60% Spend Geological and Geophysical Services 80% Spend Safety and Environmental Studies 75% Spend Local Materials substitution Studies 75% Spend EXPLORATION, SUBSURFACE, PETROLEUM ENGINEERING AND SEISMIC Description NC% Measured Unit 3D Seismic Data acquisition services 100% Spend 4D Seismic data processing services 55% Spend 2D Seismic data processing services 100% Spend Geophysical interpretation services 90% Spend Geological evaluation services (Organic Geochemistry, Petrology, Digenesis, Giostratigraphy, Fluid Characterization, PVT, Core Analysis, Flooding) 80% Spend Mud logging services 90% Spend Coring services 90% Spend Well Testing Service 55% Spend Drilling rigs (Swamp) 60% Man-hour 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act Drilling Rigs (Semi submersibles/Jack ups/Others) 55% Man-hour Drilling Rigs (Land) 70% Man-Hour Work-over Rigs (Swamp) 70% Spend Snubbing Services 80% Spend Liner Float, Hangers and Running Equipment Services 55% Spend Field Development Plan 100% Spend 2D Seismic Data Interpretation Services 100% Spend 3D Seismic Data Interpretation Services 100% Spend 4D Seismic Data Interpretation Services 55% Spend Drilling rigs (Land) 70% Man-Hour TRANSPORTATION/SUPPLY/DISPOSAL SERVICES Description Measured NC% Unit Tugs/Remotely Operated Vehicle (ROV) support/diving support vessels 65% Spend Barges 95% Spend Accommodation platforms/Vessels 90% Spend Disposal/Distribution and Waste Transport Services 100% Spend Rental of Cranes and Special Vehicles 75% Spend Freight Forwarding/Logistics Management Services 65% Spend Supply Base/Warehouse/Storage Services 70% Spend Truck Package/Product Transportation Services 100% Spend HEALTH, SAFETY AND ENVIRONMENT Description NC% Measured Unit Site Clean-up Service 100% Man-Hour Pollution Control 45% Spend Waste Water Treatment Services 65% Man-Hour Fire and Gas Protection System Services 50% Man-Hour Ventilation/Heating/Sanitary Services 85% Man-Hours Waste Disposal/Drainage Services 100% Man-Hours Industrial Cleaning Services 100% Man-Hours Disposal/Distribution and Waste Transport Services etc. 100% Spend Safety/Protection/Security/fire fighting System Services 90% Man-Hours Preservation of Mechanical and Electrical Components Services 95% Man-Hours Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 Equipment brokerage services 75% Spend Temporary Accommodation/Camp Services 80% Spend Catering Services 100% Spend Cleaning and Laundry Services 100% Spend Security Services 95% Spend Medical Services 60% Spend Equipment Brokerage Services 75% Spend Other Supporting Services 85% Spend Pollution Control 90% Man-hour/ Spend INFORMATION SYSTEMS/INFORMATION TECHNOLOGY/COMMUNICATION SERVICES Description NC% Measured Unit Network Installation/Support Services 85% Spend Software Development and Support Services 45% Spend Computer Based Modelling Services 51% Spend Computer Based Simulation/Training Programs Services 51% Spend CALICAP Services 51% Spend Hardware Installation Support Services 50% Spend Operating System Installation/Support Services 50% Spend User Support/Help Desk Services 60% Spend Library Services 70% Spend IT Management Consultancy Services 50% Spend Data Management Services 50% Spend Telecommunication Installation/Support Services 60% Spend Data and Message transmitting Services 60% Spend Rental of Telecommunication Lines 75% Spend Telecommunication Subscription Services 85% Spend Public Address System Services 95% Spend Other Information Systems (IS)/Information Technology (IT) Services 75% Spend MARINE, OPERATIONS AND LOGISTICS SERVICES Description NC% Measured Unit Telecommunication Services 90% Man-Hour 2010 No. 2 Nigerian Oil and Gas Industry Call tent Development Act Supply of crew men for domestic coastal services 80% Number Diving/RO'v/Submersible Operations 70% Man-Hour Hook-up and Commissioning including Marine Installation Services 75% Man-Hour Dredging Service 55% Man-Hour! Spend Gravel and Rock Dumping Service 65% Man-Hour Floating Storage Units (FSU) 45% Man-Hour Subsea Pipeline Protection Services 55% Man-Hour Installation of Subsea Package 60% Man-Hour Mooring System Services 50% Man-Hour Ship Chandler Service 90% Spend Moving Services 100% Man-hours/ Spend Supply Vessels 45% Man-hours/ Spend Stand-by Vessels 55% Spend Domestic Clearing of Cargos 30% Spend Bunkering Services 60% Spend Marine Insurance 40% Spend Marine Consulting 40% Spend Marine Logistic 30% Spend FINANCE AND INSURANCE Description NC% Measured Unit General Banking Services 100% Usage Monetary Intermediation Services 70% Usage Credit Granting Services 50% Loan Amount Security Braking and Fund Management Services 100% Spend Financial Management Consultancy Services 70% Spend Accounting Services 70% Man-hours Auditing Services 100% Spend Life Insurance Services lOO Spend Pension Funding Services % 100% Spend Non-Life Insurance Services 70% Spend Insurance Broking Services 100% Spend INSTALLATION, HOOKUP AND COMMISSIONING Description NC% Measured Unit Surface Treatment, Sandblasting, Painting, Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 Coating and Fire proofing Services 80% Man-Hour Subsea construction services 45% Man-Hour Hook-up and commissioning including marine installation services 75% Man-Hour Installation of subs ea packages 45% Man-Hour Electrical/Instrument Services 45% Man-Hour Insulation Services 50% Man-Hour Diving/ROV /Submersible operations 75% Man-Hour Subsea Construction Services 45% Man-Hour Pipe Cutting and Bending Services 100% Man-Hour Catalyst Handling/Regeneration Services 85% Man-Hour Bolt Tensioning Services 75% Man-Hour Rope Access Services 70% Man-Hour Welding and Jointing Services 60% Man-Hour Maintenance and Modification of Pumps and Rotating Equipment 65% Man-Hour Heat Treating and Demagnetising Services 80% Man-Hour Tank Bottom Sludge Treatment Services 85% Man-Hour Valve Management Services including Testing and Repair 85% Man-Hour Crane Management Services 80% Man-Hour/ Rate Other Construction/Maintenance Services 80% Man-Hour/ Tonnage/Rate Pipe laying/Cable Laying Services 50% Man-Hour Trenching and Excavation Services 100% Man-Hour Cranes/Crane Barges/Heavy Lift Vessels 100% Man-Hour Marine Services 65% Man-Hour/ Spend Subsea Services 45% Man-Hour/ Spend Well Services 70% Man-Hour/ Spend Cutting Services 75% Man-Hour/ Spend Site Services 85% Man-Hour/ Spend Other Decommissioning and Abandonment Services 90% Man-Hour/ Spend Service Station Tank Maintenance/Services 75% Spend 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act Electrical/Electronic Systems Integration 55% Spend Process Testing including Helium and Nitrogen Services 65% Spend INSPECTION, TESTING AND CERTIFICATION Description NC% Measured Unit Material Technology/ Anti-Corrosion/Surface Protection Services 85% Man-Hour Non-Destructive Testing (NOT) Services 60% Man-Hour Pipeline Flushing, External/Internal Inspection, Pigging Services 85% Man-Hour/ Rate Surface Treatment Inspection Services 90% Man-Hour Pressure Testing Services 90% Man-Hour Instrument Testing/Calibration Services 85% Man-Hour Load Testing Services 75% Man-Hour Diving/ROV operations 65% Man-Hour Laboratory Testing Services 55% Man-Hour Dimensional Control/Verification Services 45% Man-Hour Third Party Measurement Services 45% Man-Hour Other Inspection Services 45% Man-Hour Quality Management Systems Certificate 55% Nos. of Certification obtained Environmental Management Systems Certificate 45% Nos. Safety Management System Certification 45% Nos. Information Security Management Systems Certificate 45% Nos. Certification of Welders 50% Nos. Certification by NOT personnel 45% Man-Hour Certification of machinery and equipment 45% Numbers Certification on NOT Personnel 50% Nos. Certificate of Machinery 50% Nos. Certification of Cranes and Lifting Appliances 45% Nos. Certification of Pressurised Equipment 45% Nos. Evaluation and Certification of Software and Electronics (IT) 45% Nos. Notified Body for Machinery 45% Nos. Notified Body for simple Pressure Vessels 45% Nos. Notified Body for Telecommunication Terminal Equipment 50% Nos. Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 Notified Body for Personal Protection Equipment 45% Nos Notified Body for Lifts 50% Nos Notified Body for Pressure Containing Equipment 45% Nos Integrity Management Services 50% Nos Other Certification Services 50% Nos Other Testing Services 49% Man -Hour PROJECT MANAGEMENT/CONSULTING SERVICES Description NC% Measured Unit Construction Management and Supervision Services 80% Man-Hour Project Administration Services/Project Management 80% Man-Hour Quality Assurance QA/QC Consultancy 45% Man-Hour Safety, Health and Environment Consultancy 45% Man-Hour Risk Analysis Consultancy 45% Man-Hour Personnel/Training System Consultancy (for Training Courses select 3.99.13) 45% Man-Hour Legal Consultancy 50% Contracts Cost and Planning Consultancy 75% Man-Hour Material Administration Consultancy 75% Man-Hour Technical Documentation/Document Control Consultancy 85% Man-Hour Advertising/Public Affairs/Public Relations Consultancy 80% Man-Hour Marketing and Market Research Consultancy 75% Man-Hour Translation and Manual Writing Consultancy 45% Man-Hour Welding and Jointing Consultancy 45% Man-Hour Warranty Surveyors 45% Man-Hour Third Party Evaluation/Verification Consultancy 50% Spend Energy Conservation Consultancy 65% Spend Decommissioning and Abandonment Consultancy 90% Spend Meteorological Consultancy 55% Spend Staff Search/Selection Consultancy 80% Spend Sub-surface Consultancy (Geological, Geophysical, Reservoir) 90% Spend Design Consultancy (Industrial Design, Web Design etc.) 85% Man-Hour Marine Consultancy 50% Spend Subsea Consultancy 45% Spend 2010 No. 2 Nigerian Oil and Gas Industry Content Development Act Career/Outplacement Consultancy 70% Spend General Management and Business Development Consultancy 80% Spend Other Consultancy Services 55% Spend Pollution and Pollution Control Works and Consultancy 65% Spend SURVEYING/POSITIONING SERVICES Description NC% Measured Unit Soil Investigation Services 80% Spend Navigation/Positioning Services 50% Spend Geotechnical Services 60% Spend Geophysical and Hydrographic Site Survey 100% Spend Oceanographic Services 60% Spend Rig Positioning Services 65% Spend Photogrammetric Surveying Services 45% Spend Chart and Map Production Services 45% Spend Rental of Surveying/Positioning Equipment Services 45% Spend Survey and Positioning Support Services 75% Spend Aeromagnetic Survey 45% Area MODIFICATION AND MAINTENANCE Description NC% Measured Unit Car Wash Equipment Maintenance/Services Canopy Equipment Maintenance/Services 90% Spend Dredging services 90% Spend Signs and Accessories Maintenance/Services 55% Spend Services Station Pumps Maintenance/Services 80% Spend Payment Terminal Maintenance/Services 65% Spend Service Station Tanks Maintenance/Services 80% Spend Subsea systems 75% Spend Pipeline Systems 45% Spend Risers 60% Spend Umbilicals 49% Tonnage Terminal/Oil Movement Systems 51 % Tonnage Accommodation/Office/Workshop/Storage Modules 70% Volume Process Modules/Packages 80% Spend Utilities Modules/Packages 65% Tonnage Drilling Modules/Packages 80% Tonnage Buildings including Services Stations 70% Tonnage Nigerian Oil and Gas Industry Content Development Act 2010 No. 2 Engineering Modification and Maintenance Services for a Site/Platform 90% SHIPPING Description NC% Measured Unit Domestic coastal carriage of petroleum products 60% Spend Tow of oil and gas infrastructure and vessels conveying Oil and Gas products from or to any Port or point in Nigerian waters 90% Spend Supply of very large crude carriers (VLCC) 90% Spend I certify, in accordance with Section 2 (1) of the Acts Authentication Act, Cap. A2, Laws of the Federation of Nigeria 2004, that this is a true copy of the Bill passed by both Houses of the National Assembly. OLUYEMI OGUNYOMI Clerk to the National Assembly 29th Day of March. 2010 EXPLANATORY MEMORANDUM This Act provides for the development of Nigerian content in the Nigerian oil and gas industry, Nigeria content plan, supervision, co-ordination, monitoring and implementation of Nigerian content. SCHEDULE TO NIGERIAN OIL AND GAS INDUSTRY CONTENT DEVELOPMENT BILL, 2010. (1) (2) (3) (4) (5) Short Title Long Title of the Summary of the Date passed by Date Passed by of the Bill Bill Contents of the Bill the Senate the House of Representatives Nigerian Oil and A Act to provide for the This B ill seeks to provide for the 10th March, 2010 3rd March, 2010 n Gas Industry development of Nigerian content development of Nigerian content in Content in the Nigerian Oil and Gas Industry, the Nigerian Oil and Gas Industry, Development Nigerian content plan, supervision, Nigerian content plan, supervision, Bill, 2010 co-ordination, monitoring and co-ordination, monitoring and implementation of Nigerian implementation of Nigerian content. content; and for related matters. I certify that this Bill has been carefully compared by me with the decision reached by the National Assembly and found by me to be true and correct decision of the Houses and is in accordance with the provisions of the Acts Authentication Act Cap. A2, Laws of the Federation of Nigeria, 2004. OLUYEMI OGUNYOMI, Clerk to the National Assembly 29th Day of March, 2010 I ASSENT. LS DR GOODLUCK EBELE JONATHAN, GCFR President of the Federal Republic of Nigeria 22nd Day of April, 2010