Oil firm sues local content board, Mobil for breach of Act
By Isaac Job, Uyo
An indigenous oil servicing company operating in Akwa Ibom state, the Pioneer Divers International Limited has commenced legal action against the Nigeria Content Development and Monitoring Board (NCDMB) for the alleged breach of local content laws that regulate the patronage of local firms by international oil companies.
In a suit number HEK/96/2019, filed at the state High Court in Eket, the plaintiff through its lead counsel, Nwabueze Onukogu alleged that the NCDMB has breached the provisions of the Nigerian Oil and Gas Industry Content Development Act, 2010.
Joined in the suit as defendants are ExxonMobil, Boron Oil and Gas Limited of the United States and Subtech Company from South Africa.
Onukogu further alleged that the Nigerian Development Content and Monitoring Board conspired with some international oil companies, such as ExxonMobil to short change Nigerian companies from benefiting in contract awards which can facilitate the transfer of technology that would help indigenous firms acquire the expertise as envisaged by the Local Content Act, 2010.
The plaintiff is claiming that Mobil awarded a $90 million diving contract to Boron Oil and Gas in partnership with Subtech, observing that the services would have been executed by local companies, but that the first defendant (NCDMB) recommended the third and fourth defendants to Mobil in breach of the local content law.
The plaintiff said the recommendation by the Nigeria Content Development and Monitoring Board was a violation of the local content laws which they are 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 to declare that the defendants have breached the provisions of the Nigerian Oil and Gas Industry Content Development Act, 2010.
“There shall be exclusive consideration of indigenous companies of which plaintiff is and demonstrate ownership of equipment, Nigeria personnel and capacity to execute and bid for any work 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 million as damages in relief having established that the defendants have failed in their duty as enshrined in the law and an order compelling Mobil to also cancel an earlier contract awarded to CNS International, an Italian company providing similar services in their oil field in Akwa Ibom state.
The case has been adjourned to May 20 for hearing.
