NIGERIAN CONTENT DEVELOPMENT AND MONITORING BOARD

GUIDELINES ON APPLICATION FOR EXPATRIATE QUOTA & DEPLOYMENT OF EXPATRIATES IN THE NIGERIAN OIL AND GAS INDUSTRY.

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17/05/2011 DATE

Issued for Compliance

REASON FOR ISSUE

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APPROVED

NCDMB HQ Revenue House Lambert Eradiri Road, Onopa, P.M.B. 10, Yenagoa Bayelsa State Document No.: NC-LEG-01EQ/10

NIGERIAN CONTENT DEVELOPMENT AND MONITORING BOARD

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INTRODUCTION The Nigerian Oil and Gas Industry Content Act (Act) was signed into law on 22 nd April, 2010, by His Excellency, President Goodluck Jonathan. The Act provides steps to be used for development and monitoring of Nigerian Content in the Oil and Gas Industry (Industry). It established a Nigerian Content Development & Monitoring Board (NCDMB) which is charged with the responsibility of monitoring the implementation of the provisions of the Act, with a view to ensuring compliance by all operators, contractors, alliance partners and relevant stakeholders. Part of the responsibility includes the administration and management of applications for Expatriate Quota and deployment of Expatriates in the Industry on NCDMB, as provided in Section 33 of the Act. OBJECTIVE This Guideline is issued pursuant to the provisions of the Nigerian Oil and Gas Industry Content Development Act, 2010 (Act) and for the purpose of establishing a procedure for the administration and management of applications for Expatriate Quota and deployment of same in the Industry. Section 33 (1) of the Act requires operators to make application to and receive the approval of the NCDMB before making any application for Expatriate Quota to the Federal Ministry of Interior (FMI) or a ny other agency or Ministry of the Federal Government. APPLICATION This Guideline is intended to facilitate compliance with the relevant Sections of the Act dealing with and/or connected to issues of Expatriate Quota, deployment of Expatriate, Succession Planning and Technology Transfer. It shall be applicable to all operators (NNPC, International Oil Companies and indigenous operators), Service Companies, all companies providing services and carrying on business in the Industry. DEFINITIONS Act NCDMB ES FMI DPRS NNPC DPR Industry Applicant Company Nigerian Position

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Expatriate Positions Understudy -

Nigerian Oil and Gas Industry Content Development Act Nigerian Content Development & Monitoring Board (The Board) Executive Secretary Federal Ministry of Interior Director of Planning, Research and Statistics Nigerian National Petroleum Corporation Department of Petroleum Resources Oil and Gas Industry Company applying for EQ Position in Professional or Technical cadre occupied by a Nigerian Nationals A position occupied by Non Nigerian national A Nigerian National deployed by an employer to work under an expatriate with the aim of eventually succeeding the expatriate

Management

A level within an organization which membership is individually in charge of a group of tasks or a subset of the company and who cannot belong to any Labour Union or Association by the virtue of their being in such cadres.

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PROCEDURE FOR APPLICATION Any stakeholder applying for EQs in the Industry; including companies providing service(s) or intending to provide service(s) in the Industry shall receive the approval of the NCDMB before making such application for EQ to FMI. NEW EXPATRIATE QUOTA The Applicant Company shall provide proof that the position(s) under application have been advertised in at least four major Nigerian newspapers and an international newspaper, including but not limited to the WASHINGTON POST and the FINANCIAL TIMES. Applicant Company shall show proof that the post(s) had been advertised internally and that no qualified Nigerian(s) had been found in the company for the position(s) All draft external advertisements for the positions under application shall be submitted to NCDMB for review and certification prior to publication. The Applicant Company shall notify NCDMB of receipt of applications, planned interview dates and results of interview for each vacancy advertised. The Applicant Company shall provide: i The information specified in Form NCDMB EQ/A1, on paper and electronic (Excel) formats in its application to the Board. ii iii. Proof that no qualified Nigerian had been found to occupy the position(s) The information as specified in Form NCDMB EQ/A2 on existing expatriates in the company on paper and electronic (Excel) formats.

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EXTENSION OF EXISTING EXPARTRIATE QUOTA Applicant Company seeking extension or renewal of existing Expatriate Quotas shall: i. Show proof that no Nigerian could be found internally within the company to occupy the position(s) ii. Show proof that the position(s) under application have been advertised in at least four major Nigerian newspapers and an international newspaper, including but not limited to the WASHINGTON POST and the FINANCIAL TIMES. iii. Submit a draft advertisement for the position(s) to NCDMB for review and approval; iv. Submit notification on dates of requisite approvals, interviews and results

4.3 INFORMATION TO BE PROVIDED IN APPLICATION WITH SUPPORTING DOCUMENTS All applications for EQs shall be accompanied with the following: i. Program/strategy for the reduction of expatriates Specific target dates to convert the expatriate positions to Nigerian positions and a; ii. Organizational Chart iii. Advert Report iv. Interview Report and list of successful candidates 4.4 CONSIDERATION OF APPLICATIONS BY NCDMB i. Upon receipt of the application and the submissions, the Board shall hold a joint evaluation of the application with the company on the application, to ascertain that the application is in line with the provisions of the Act and the Schedule to the Act. Thereafter, the Board shall make a determination on the application for FMI. ii. The Board shall make a determination on expatriate quota applications submitted to it within 30 days of the receipt of the application. However, if it is unable to determine on an application within the time stipulated, it shall inform the applicant, communicate the reasons for the delay and give a definite time within which a determination shall be made. The extended period shall not be more than 15 days after the expiration of the initial 30-day period. iii. Every fresh or renewal requests on expatriate quota by a service company for project(s) shall be jointly presented and defended before the Board by the applicant and project owner/ promoter 4.5 COMMUNICATION WITH APPLICANT COMPANIES Upon issuance of the Expatriate Quota by FMI, the applicant shall communicate to the Board the list of the approved positions within one week of receipt on paper and electronic (Excel) formats, along the format specified in Form NCDMB EQ/B1. Except by a written authorization of the issuing agency, the job-titles or designations on the expatriate quota approval shall remain unchanged for the duration specified in the FMI letter(s) of grant. REPORTING & PROCEDURES i. Any company engaged in Exploration and Production (E&P) activities in Nigeria is required to render to the Board annual returns of all expatriate workers in temporary, contract or permanent employment in the company and including those of its contractors, and sub-contractors on all ongoing projects. The company shall furnish the Board with the information listed in Form NCDMB EQ/C1, on paper and electronic (Excel) formats. The submissions shall be made to reach the Board not later than March 31 of the current year.

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ii. Any service company operating in the oil and gas industry is also required to render bi-annual returns to the Board on all expatriate workers in its employment and in the employment of any of any contractor that have carried out or is carrying out any jobs valued at one million US dollars or above for it in the reporting year. The submissions, to be rendered on paper and electronic (Excel) formats) on Form NCDMB EQ/C1, should be made to the Board twice every year, to reach the Board on or before January 31 and August 31, respectively in the current year. iii. In cases where the expatriates are deployed on specific projects for longer than 12 months, service companies are to obtain the confirmation of the Project owner/promoter on Form EQ/C1 before making the submission to the Board. iv. E&P operators shall make annual submissions on their Nigerian Staff to the Board. The submissions shall provide the information specified on Form NCDMB EQ/D1, made on paper and electronic (Excel) formats, to reach the Board on or before March 31 of the current year. v. Service companies are required to render annual returns on their Nigerian staff to the Board. The submissions in paper and electronic (Excel) formats shall also provide the information specified on Form NCDMB EQ/D1 to reach the Board on or before January 31 of the current year. vi. Expatriate(s) shall be designated and deployed strictly in line with the designation(s) on the FMI approvals vii. Expatriate(s) shall depart Nigeria upon completion of the project for which the positions had been granted by the FMI

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INTERFACES WITH FEDERAL MINISTRY OF INTERIOR AND DEPARTMENT OF PETROLEUM RESOURCES NCDMB shall periodically meet with FMI and DPR to assess progress on industry compliance with Expatriate Quota provisions. COMPLIANCE MONITORING i. NCDMB, in accordance with the provisions of Section 59 and 62 of the Act shall establish a mechanism for monitoring compliance with these Guidelines, which may include but not limited to unscheduled visits to offices or job sites of the companies, as it deems necessary. ii. All stakeholders shall, in compliance with Section 60 of the Act, submit their annual Nigerian Content Performance Report to NCDMB within 60 days of the beginning of each year. This report shall cover EQ performance for the year under review.

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CONSEQUENCES OF NON-COMPLIANCE i. Notwithstanding the provisions of Section 68 of the Act, any stakeholder in the Industry; including companies providing service(s) or intending to provide service(s)

would be deemed to have committed a breach if it employs or cause to employ any expatriate staff either on permanent or temporary position(s) in the oil and gas industry outside of the procedures specified in this Guideline. ii. The Board would require immediate removal of such expatriate(s) and penalize the company in line with the provisions of the Act 7.0 COMPLIANCE TRACK-RECORDS Evidence(s) of past Expatriate Quota applications treated by NCDMB shall be a Nigerian Content requirement for ITTs. FORMS AND CHARTS EQ/A1 For EQ New Applications EQ/A2 EQ/B1 EQ Renewals Application To be Completed by companies and submitted to NCDMB upon receipt of approval from FMI. All companies are also required to submit this NCDMB upon receipt of this guideline for uploading the required data into the NOGIC-JQS EQ Utilization Report Nigerian Staff Details

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EQ/C1 EQ/D1--