Senate Rejects Operational Model Of Multinational Oil Companies


*Impressed with $70m grant on  oil/gas research 


The Senate Committee on Local Content  has rejected the  extractive operational model  being carried out in Nigeria by the following oil firms: Chevron , Exxon and other oil companies.

The committee stated that the oil companies do not have manufacturing content.

This followed the interaction between the committee and the National Content Development and Monitoring Board (NCDMB).

Thr NCDMB had told the committee to invite the oil companies for explanations on their extractive mode of operation without manufacturing content. 

The Senate committee during its session with management of NCDMB on Wednesday,  specifically observed  that Chevron apart from crude oil exploration in Saudi Arabia, also manufactures Polypropylene one of the waste products from Gas to produce Syringe which fetches Saudi Arabia $6billion  annually .

It also noted  that Exxon oil does same in United States of America (USA),  by making the country, the third largest producer of Polypropylene (PP).

The committee which was  chaired by Senator Natasha  Akpoti – Uduaghan (PDP Kogi Central), queried why the same international oil companies exploring crude oil in Nigeria , don’t  go the extras mile of using waste products from Crude  oil for manufacturing of needed products in the country  .

The committe firther observed that the lack of operational model of the International Oil companies had led to the collapse of Jubilee Syringe Plant in Bayelsa due to lack of the needed raw material (Polypropylene).

According to the Chairman of the committee, since  NCDMB says it doesn’t have the power to make the international oil companies diversify their mode of operations,  they shall be summoned to give explanations on why they are turning Nigeria to extractive zone and not manufacturing one, as done in other climes.

“We cannot just allow the oil companies to turn Nigeria to just an extractive zone as far as exploration of crude oil is concerned but a manufacturing one as well with attendant economic value .

“This committee shall therefore summon the affected oil companies to appear before it on how what are available in Saudi Arabia, USA etc,  can be replicated in Nigeria,” she said.

The  committee was however,  impressed with disclosure  made by the Executive Secretary of NCDMB,  Engr Felix Ogbe on $50million grant for research and $20m dollar for women in oil and gas.


Please enter your comment!
Please enter your name here