Oil and gas services firms Schlumberger (NYSE: SLB), Subsea 7 and FMC face being banned from working in Equatorial Guinea if they do not commit by the end of this month to create more jobs for locals, an oil ministry source said on Sept. 7.
The move is part of crackdown by the African country to enforce local content laws that have been in place since 2014 and which has already grounded CHC Helicopter.
All three companies did not respond immediately to phone calls or emails for comment.
In July, the OPEC member and one of Africa’s top oil producers ordered petroleum operators, including ExxonMobil Corp. (NYSE: XOM) , to cancel contracts they held with Canadian-based CHC Helicopter for flouting local content laws meant to create jobs.
“The ministry is aggressively looking at the second phase, with three additional companies that will have the same fate if they don't get their act together in one month, by the end of September,” said the source, who requested anonymity because they were not authorized to speak to the media.
“Schlumberger, FMC and Subsea 7 are really in the last stage of being asked by the ministry for the operators to cancel their contracts and tender new ones for new companies to do the work, especially because they are not complying with local content.”
Equatorial Guinea’s national content regulations of 2014 state that agreements must make provisions for capacity building and give preference to local companies when awarding service contracts in the African country.
Recommended Reading
US Decision on Venezuelan License to Dictate Production Flow
2024-04-05 - The outlook for Venezuela’s oil industry appears uncertain, Rystad Energy said April 4 in a research report, as a license issued by the U.S. Office of Assets Control (OFAC) is set to expire on April 18.
The Jones Act: An Old Law on a Voyage to Nowhere
2024-04-12 - Keeping up with the Jones Act is a burden for the energy industry, but efforts to repeal the 104-year-old law may be dead in the water.
Vietnam Seeks Delicate Balance Among US, China, Russia
2024-02-08 - Ongoing U.S. tensions with China and Russia offer Vietnam an opportunity to boost economic ties with the former if American investors can steer past geopolitical smokescreens and destine funds for infrastructure, power and LNG projects all somewhat tied to Vietnam’s manufacturing sector.
Everywhere All at Once: Woodside CEO Touts Current Global Portfolio
2024-03-05 - Meg O’Neill, the CEO of Australian energy giant Woodside Energy, is overseeing the “next wave” of growth projects around the globe, including developments in the Gulf of Mexico, offshore Senegal and further LNG expansion.