Companies doing business in Nigeria's Oil & Gas Industry are required to commit to doing business in such a way as to provide the greatest benefit to Nigerian industry and the Nigerian people.
NETCO is a wholly owned subsidiary of the Nigerian National Petroleum Corporation (NNPC) with all Nigerian employees. Its Nigerian employees execute most of the engineering work in Nigeria within the offices of NETCO with expatriate backup where necessary.
NETCO has been pursuing the domestication of engineering capability in Nigeria's Oil & Gas industry since August 1990 when it started commercial operations as well as boosting the drive to improve Nigerian Content and indigenous participation in the upstream sector of Nigeria's Oil & Gas industry.
NETCO has taken its support for the local content to a new level by integrating Engineers from other Nigerian Engineering companies into its project teams. NETCO intends to continue with this example as a way of spreading the engineering knowledge to as many Nigerians as possible.
The implementation of the Nigerian Content Policy has recently moved into overdrive as the Group Managing Director of the Nigerian National Petroleum Corporation issued in December 2005 directives to major industry players for the realization of key targets. The targets require that certain aspects of projects being executed within Nigeria's oil & gas industry be executed in Nigeria effective from 2006.
Part of the implications of the new directives is that for the NNPC to approve new projects, the proponents of such projects must demonstrate that the projects will meet the set Nigerian Content targets. The other implication is that indigenous Contractors need to go into new alliances with their foreign counterparts or re-negotiate already existing alliances so as to increase the level of foreign investment and capacity building in Nigeria. Capacity building will include areas such as front end engineering design, detailed engineering design, fabrication of the topsides of fixed platforms not more than 5,000 tons, seismic data processing, reservoir management studies and integration of the topsides of Floating Production Storage and Offloading (FPSO) vessels.
To ensure a more effective monitoring of the implementation, the NNPC Group MD also set up within his office a high profile Nigerian Content Division with a strong mandate to drive the objectives.
NETCO is a key player in the Implementation of these Nigerian Content objectives. NETCO led the effort by the owners of the Agbami FPSO Project to have Nigerians achieve 300,000 engineering hours of work on the project - a feat that was not achieved in previous FPSO projects. NETCO is also working with various oil industry operators to set up Centres in Nigeria where they can carry out the Front End Engineering Design (FEED) and Detailed Engineering jobs that are now required to be carried out in Nigeria.
NETCO will continue to perform these services, where necessary, in alliance with various companies.