Equatorial Guinea directs cancellation of CHC Helicopter contracts
Created: Thursday, 19 July 2018 06:03
The Ministry of Mines and Hydrocarbons of Equatorial Guinea has mandated the country's petroleum operators to cancel all contracts with Canadian-based CHC Helicopters, due to noncompliance of Equatorial Guinea's national content regulations
Gabriel Mbaga Obiang Lima, minister of mines and hydrocarbons, said, "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."
Oil companies operating in Equatorial Guinea have been given 60 days to unwind contracts and find new suppliers, with only those companies in compliance with the local content provisions established in 2014 allowed to bid for contracts.
"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," Lima added.
Under the National Content Regulation of 2014, all agreements must have local content clauses and provisions for capacity building, with preference given to local companies in the award of service contracts.
"We are eager to work with international companies who partner with Equatorial Guinea in the development of our industry," said the minister.
"We expect all companies operating in Equatorial Guinea to follow the laws of the Republic of Equatorial Guinea," Lima reinforced.