A presentation by NNPC at the International Energy Roundtable, Imo State July, 2009

2. Presentation Outline

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4. IMPLEMENTING NIGERIAN CONTENT  10-point Agenda Establish NC Division Develop charter and operational framework Build industry-wide collaboration Gather relevant data &establish NC opportunities Develop policy, procedures and processes Roll out Guidelines for industry compliance Identify capacity gaps Design & implement capacity building measures Develop critical enablers for Measurement & Monitoring Promote investment in key focus areas

5. The Nigerian Content Division (NCD) was set-up with a vision to develop in-country capacity and capabilities, build a competitive supply and services sector and ultimately create a hub in Nigeria for energy service delivery in Africa� This vision will be delivered by Liaising with the industry operators and suppliers to establish and address gaps in the demand and supply of goods, services and equipments Identifying and developing new opportunities for improving local participation in the Oil & gas Industry Promoting the acquisition of required technical skills by local companies that render services to the Oil & Gas Industry Establishment of The Nigerian Content Division

6. DEVELOP CHARTER & OPERATIONAL FRAMEWORK Learning from Others Brazilian model PROMINP (Local Content unit) is integrated into national oil company Built capacity on back of Oil and Gas projects Malaysian model Petronas is in the forefront of Local content Strong domiciliation requirements Norwegian model Focused on local capacity building and applied incentives to grow Norwegian companies

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9. 9 Nigerian Content Implementation Model23-Point Domiciliation Guidelines

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13. Capacity Challenges 13

14. National Content Development  Extending the Focus to Other Service Sectors of Economy 14

15. Nigerian Content ImplementationGrowth trends (Engineering & Fabrication)

17. New established & Planned Manufacturing Plants - 2007 17

18. Pressure Vessel Manufacturing at NigerDock 18

19. Maintenance Work on Subsea equipment at Vetco Grey yard Onne 19

20. Success Stories (Contd) Developing Skills and Competencies Multinationals/Project promoters have been mandated to employ Engineering Service Agreements to maximize utilization of local engineering capacity. Nigerian Institute of Welding has been revitalized and empowered to assess and certify all welders and industry welding processes. 100 welders undergoing training and certification to ISO 9606 standard under NNPC/SPDC WTCP Pilot. 20 Instructors selected for IWP/IWS certification in preparation for training and certification of 2500 welders under NNPC/PTDF WTCP program Enforcing cabotage compliance on all Oil and Gas projects. Jack up rigs, supply vessels, AHTs consigned to Indigenous owners. Inserted man hours for NC training in ITTs for all Oil and Gas projects. Execution of man hours must be supervised and approved by NCD Training institutes being established in-country to handle all Basic Offshore Safety Induction and Emergency Training (BOSIET) in response to NCD campaign 20

21. Over $50Bn in Nig Gas Master Plan Over $80bn spend in 2009 -2014 3 LNG Plants 3 to 4 FPSOs Refinery revamps Ops & Maint of existing facilities

22. Typical Industry Work Distribution Profile 22

23. Human Capital Development Interventions NEEDS ASSESSMENT BASED ON INDUSTRY PLANS FOR 2006 TO 2011 PTDF PROGRAMS NNPC/PTDF COLLABORATIONS JOB CREATION INITIATIVE EDTP WTDP GEOSCIENCES KEY ELEMENTS OF THE MODEL TARGETS ENTRY LEVEL COMPETENCIES USE ONGOING PROJECTS AND OPERATIONS TRANSFERABILITY OF SKILLS FOR OTHER SECTORS OF ECONOMY CERTIFICATION IS IMPORTANT DATABASE TO TRACK TRAINEES PROGRESS THROUGH TO EMPLOYMENT Education & Training committee of NCCF formed in June 2009 Oil and Gas Trainers Association of Nigeria (OGTAN) formed to promote opportunities and standardization of in-country training resources.

24. 24 NC Human Capital Development Model

25. Nigerian Content Implementation Challenges

26. Addressing Challenges NCD pursuing the following: Strict adherence to import restriction on some imported items with a view to discouraging waivers and exceptions Streamlining import tariff that would encourage the establishment of assembly plants in the country Passage of the Nigerian Content Bill as agreed by Stakeholders to include penalties for defaulting Aggressive training and engagement of trained Nigerians in ongoing projects Leverage potential opportunities from upcoming projects to develop industry capacity � Nigeria Gas Master Plan, BrassLNG, NLNG T7+ 26

27. Concluding Remarks A Key deliverable for the Nigerian Content Policy is to increase indigenous participation and grow GDP impact Implementation is anchored on collaboration and partnership and NNPC has nurtured strong synergies to create capacity and promote compliance Domiciliation has increased work load in Nigeria but lack of continuity in job availability has limited growth in the employment of nationals There is need to grow capacity in local service companies which have the potential to employ more indigenes than the IOCs, NOC and other operators. Though consigned to the oil and gas industry, there is no gainsaying that linkage industries and other sectors of the economy would benefit from a broad-based initiative Other Countries have done it. We can do it too.

28. THANK YOU FOR YOUR ATTENTION 28