Home News In the News EG sends out wake-up call to contractors

EG sends out wake-up call to contractors

922

Equatorial Guinean Ministry of Mines and Hydrocarbons is reported to have instructed all oil and gas operators in the country to stop using CHC Helicopters forthwith. The Ministry further directed that firms cancel all contracts with the transport company for failure to abide by the EG’s national content regulations.


Reports had quoted Gabriel Mbaga Obiang Lima, the Minister of Mines and Hydrocarbons thus: “It is the responsibility of the Ministry of Mines and Hydrocarbons to ensure strict compliance to our country’s National Content Regulation of the Hydrocarbons Law.”

“These laws are in place to protect and promote local industry, create jobs for citizens, promote the sustainable development of our country, and we are aggressively monitoring and enforcing the compliance of these requirements.”

According to news reports, oil companies operating in Equatorial Guinea have further been given 60 days to nullify existing contracts and find new suppliers who will be ready to abide by the local content provisions established in 2014 to guide bidding process in the country.

Adding that a review to ascertain compliance to the rules in the sector was ongoing headed by the Director of National Content of the Ministry. Similar measures the ministry say, will be taken against any defaulting companies even as the review continues.

Under the National Content Regulation of 2014, reports Petroleum Africa, all agreements must have local content clauses and provisions for capacity building, with preference given to local companies in the award of service contracts. Local shareholders must be part of every contract as prescribed by law. The operators have an obligation to ensure compliance of their subcontractors,

“We are eager to work with international companies who partner with Equatorial Guinea in the development of our industry,” said the Minister. “But we expect all companies operating in Equatorial Guinea to follow the laws of the Republic of Equatorial Guinea. As Minister, I will not hesitate to enforce the law to ensure compliance.”

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here