REQUIREMENTS FOR DOING BUSINESS IN THE …ritofa.com/ritofa/images/download/REQUIREMENTS FOR DOING BUSIN… · requirements for doing business in the nigerian oil ... nipex. . registration

REQUIREMENTS FOR DOING BUSINESS IN THE NIGERIAN OIL

AND GAS INDUSTRY

Paper Presented at the Sensitisation/Enlightenment Workshop on the

Nigerian Oil and Gas Industry Content Development Act-2010,

at Uyo, Akwa Ibom State

By

Moses O. Kragha

Kragha & Associates ( Mining & Petroleum Consultants)

June 27, 2013

1

Order of Presentation

. Introduction

. Registration with Corporate Affairs and Allied Matters

Commission (CAC)

. Application for DPR annual Permit

. Registration with NCDMB Joint Qualification System (JQS) and

the e-market place, NiPeX.

. Registration with (company) users of Goods and Services.

. Available business opportunities in NC Development.

. Start-small businesses in NC development activity areas.

2

DOING BUSINES IN NIGERIAN OIL & GAS INDUTRY

1. Introduction

For any body (corporate) to undertake any business in the Nigerian oil

and gas industry it will be required to fulfill the following:

. Register with the Corporate Affairs Commission (CAC)

. Obtain the annual Department of Petroleum Resources (DPR)

Licence (for operators) and/or permit (for contractors, consultants,

services providers).

. Register with the NCDMB Joint Qualification System (JQS) and

Protroleum e-marketplace

. Register with (company) users of goods and services

3


2. Registration with CAC:

a) Memorandum and Articles of Association

b) List of subscribers (and directors)

c) Certificate of incorporation or registration, if subscriber is already a

corporate body

d) Tax clearance of subscribers

e) CAC assessed costs and fees (based on size of the shares being

subscribed to

4


3. (Application for) DPR Permit (annually)

Application for DPR permit is in accordance to the category of the

activity area(s) being applied for. The DPR has classified the activity

areas into three categories:

• General Purpose Category;

• Major category;

• Specialised category;

in increasing order of complexity and sophistication of technical/

specialized skills.

5


Activities in the General Purpose Category are grouped into four sub

categories; three of these are further subdivided into 19 sub groups.

The Major Category has 20 sub divisions, while the Specislised Category

has 9.

(ALL THREE CLASSIFICATIONS OF THE ACTIVITY AREAS

ARE CONTAINED IN THE “DPR GUIDELINES AND

APPLICATION FORM FOR OIL AND GAS INDUSTRY SERVICE

PERMIT” (website: http://www.dprnigeria.com) )

6


http://www.dprnigeria.com/







S/№ DOCUMENT PAGE N/A

1. COMPLETED APPLICATION FORM

2. COPY OF CERTIFICATE OF INCORPORATION

3. COPY OF FORM C.07/CAC 7/CAC 2.3 OR COPIES OF CAC FORMS

7,6,6&2

4. COPY OF COMPANY’S CURRENT TAX CLEARANCE

CERTIFICATE

5. COPY OF A DIRECTOR’S TAX CLEARANCE CERTIFICATE

6. BANK DRAFT DRAWN IN FAVOUR OF FEDERAL GOVERNMENT

OF NIHERIA (DPR FEES ACCOUNT)

7. COPY OF BANK DRAFT

8. COPY OF THE EXPIRED PERMIT

9. COPY OF PHOTO ID OF PERSON HANDLING FOR THE COMPANY


GENERAL PURPOSE CATEGORY

NEW OR RENEWAL APPLICATION CHECK -LIST

7



2. COPY OF CERTIFICATE OF INCORPORATION

3. CERTIFIED TRUE COPY OF MEMORANDUM & ARTICLES OF ASSOCIATION

4. CERTIFIED TRUE COPY OF FORM C,07/CAC2.3/CAC7

5. BANK DRAFT DRAWN IN FAVOUR OF FEDERAL GOVERNMENT OF NIGERIA (DPR

FEES ACCOUNT)

6 COPY OF BANK DRFAY

7. COPY OF CURRENT TAX CLEARANCE CERTIFICCATE

8. VAT CERTIFICATE

9 COMPANY’S PROFILE (BROCHURE)

10 COMPREHENSIVE STAFF LIST AND CURRICULUM VITAE OF KEY STAFF

11. LIST OF EQUIPMENT/FACILITY AVAILABLE TO THE COMPANY

12. CURRENT EXPATRATE QUOTA APPROVAL (WHERE APPLICABLE)

13 UP-DATE OF TRANING PROGRAMME FOR NIGERIAN STAFF

14 REGISTRATION BY RELEVANT PROFESSIONAL BODY

15 COPY OF TECHNICAL AND FINANCIAL AGREEMENT WITH FOREIGN PARTNERS

16 WORKMEN’S COMPENSATION POLICY

17 COMMUNITY AFFAIRS, SAFETY, HEALTH, ENVIRONMENT AND SECURITY POLICY

18 COPY OF MEDICAL RETAINERSHIP AGREEMENT WITH A HOSPITAL OR CLINIC

19 COPY OF PHOTO ID OF PERSON HANDLING FOR THE COMPANY

DOING BUSINES IN NIGERIAN OIL & GAS INDUTRY MAJOR OR SPECIALISED CATEGORY

NEW APPLICATION CHECK- LIST

8



2. COPY OF CURRENT TAX CLEARANCE CERTIFICATE

3. VAT CERTIFICATE

4. BANK DRAFT DRAWN IN FAVOUR OF FEDERAL GOVERNMENT OF

NIGERIA (DPR FEES ACCOUNT)

5. COPY OF BANK DRAFT

6. COPY OF EXPIRED PERMIT

7. COMPREHENSIVE STAFF LIST

8. CURRENT EXPATRIATE QUOTA APPROVAL

9. UP-DATE OF TRAINING PROGRAMME FOR NIGERIAN STAFF

10. REGISTRATION BY RELEVANY PROFESSIONAL BODY

11. ACTIVITIES REPORT FOR 3 PRECEDING YEARS

12. ACCIDENT STATUS REPORT

13. COPY OF MEDICAL RETAINERSHIP AGREEMENT WITH A HOSPITAL

OR CLINIC

14. COPY OF PHOTO ID OF PERSON HANDLING FOR THE COMPANY

MAJOR OR SEPCIALISED CATEGORY RENEWAL APPLICATION CHECK LIST

9

4. Registration with NCDMB Joint Qualification System (JQS) and

the e-marketplace.

• in accordance with Article 55 of NOGICD Act, 2010, the JQS shall be

the industry tool for identifying and selecting current and potential

suppliers for any type of purchases, ranging from simple goods and

services, to supported services and major works.

• The JQS registration shall be the first step to becoming an oil and gas

industry supplier; the next step is for the supplier to complete a pre-

qualification questionnaire.

• Most importantly the JQS; interfacing with the Petroleum e-

marketplace, is the monitoring tool for qualitatively and

quantitatively assessing the performances of both suppliers and buyers

for their Nigerian content development programmes, both in project

execution and over time.

10


• The Board’s Petroleum e-marketplace (Article 54 of the Act), provides

a virtual platform to facilitate the transaction required for efficient

delivery of goods and services in the industry.

• When fully operational, it shall replace the multiple pre-

qualification advertorials. Pre-qualified vendors would be obtained

from the e-marketplace database consisting of companies that have

been assessed and prequalified ahead of time by industry.

• The selection of a company to provide a product or offer a service

would be done in three steps of

o Prequalification

o Technical evaluation

o Commercial

• For the award of a contract, a company would be pulled out of the

database and invited to submit its technical bid. If the technical bid is successful

and accepted, it would thereafter be invited to submit its

commercial proposal.

11

Table1. (NCDMB) LIST OF CATEGORY OF THE ACTIVITY AREAS

Catering

Office materials supplies

Estate Management

Advertising, publicity

Materials and procurement

Welding, Fabrication and construction

Engineering

Well drilling services/petroleum technology

Exploration, subsurface, petroleum engineering and seismic

Research & development services

Information systems/information technology/communication services

Health safety and environment

12

Table1. (NCDMB) LIST OF CATEGORY OF THE ACTIVITY AREAS Cont’d

Transportation/Supply/Disposal Services

Marine Operations and Logistics Services

Finance and Insurance

Installation, Hook-up and Commissioning

Inspection, Testing & Certification

Project Management/Consulting Services

Surveying/Positioning Services

Modification and Maintenance

Shipping

NB: THE 3 ITEMS ON TOP OF THE LIST ARE MOSES O

KRAGHA’S INCLUSION, NOT ON NCDMB’s LISTING

13

5. Registration with (Company) Users of Goods and Services

Besides the above-stated registrations individual purchasers of goods and

services would require suppliers to register with them.

Suppliers to such companies may be expected to

• Register with CAC or a recognized certification organization for

foreign vendors.

• Learn more about how to do business with large companies by

attending their conferences, seminars and workshops.

• Understand the company’s business.

• Register online with the company

14


6. Available Business opportunities in NC Development

. Developing and sustaining NC afford huge business opportunities to a

large number of Nigerians from all works of life and varied

experiences, given the multiplier effect and spill over into other

industrial and commercial sectors of the economy.

. The spread of opportunities can be gleaned from Table I which lists

the categories of the activity areas.

. Additionally Table 2. shows the categories of the NC business

opportunities and their beneficiaries.

15


S/№ Categories of NC business opportunities Beneficiaries

1. First consideration in the award of

contracts and jobs

Local/indigenous contractors with equipment, and

machineries, consultants, service providers,

SUPPLIERS

2. First consideration for the use of Nigerian

made goods and services

Manufacturers, inventors, producers, service

providers, SUPPLIERS

3. First consideration for employment and

training (E and T Plan); transfer

(acquisition) of technology)

Youths, school leavers, graduates, experts seeking

employment opportunities

4. Research and development The Nigerian oil and gas industry, educational

institutions, students, lecturers, researchers

contractors and service provider

5. Establishment of the Joint Qualification

System (JQS)

Contractors, service providers, SUPPLIERS

6 Establishment of the Nigerian Content

Development Fund (NCDF)

Indigenous contractors, service providers,

SUPPLIERS

Table 2: Showing categories of NC business opportunities and beneficiaries


16

7. Start-small business in NC Development activity areas

Below is the progressive approach to starting off and growing business in

an activity area in the Nigeria Oil and Gas industry.

. Identify business activity where you have proven competence,

capabilities and capacity to perform well.

. Register your business name or limited liability company with CAC.

. Establish a functional office, with a proper organisational structure.

. Apply and obtain your DPR permit.

. Register with one or two oil and gas company(ies) you want to work

for as a contractor in DPR’s General Purpose Category or as sub-

contractor in DPR’s Major or Specialised Categories.

17


7. Start-small business in NC development activity areas Cont’d

. Scout and bid for jobs in activity area(s) where you have

demonstrable capability and competence .

. Grow and develop a niche in the chosen activity area.

. Form alliances; joint-ventures and partnerships within and across

activity areas.

. DO NOT AT ANY POINT IN TIME BE A JACK OF ALL

TRADE!

18


19

Documents

REQUIREMENTS FOR DOING BUSINESS IN THE …ritofa.com/ritofa/images/download/REQUIREMENTS FOR DOING BUSIN… · requirements for doing business in the nigerian oil ... nipex. . registration