About N1.548 trillion ($12 billion) is expected to be spent on local content development by 2010 to raise indigenous participation in the oil sector to about 70 per cent.
The input is currently 20 per cent.
DVCF Oil and Gas Managing Director, Anthony Eze, disclosed at the Institute of Directors� (IOD) forum in Lagos on Thursday that Chevron, ExonMobil, Shell, Agip and Elf altogether spent about N827.406 billion ($6.414 billion) on local content in 2004.
The amount was N725.883 billion in 2003 and N455.37 billion in 2002.
Chevron budgetted N266.127 billion for it in 2004, ExxonMobil (N198.402 billion), Shell (N193.5 billion), Agip (N96.750 billion), and Elf (N72.627).
Eze was presenting his company�s offer for subscription, so as to enable Nigerians own part of the sector.
He identified the factors responsible for the low performance of indigenous companies in the past, which arose from the misappropriation of funds, shallow project management expertise and poor funding.
These resulted in a lack of capacity to meet agreed milestones, cancellation of credit accommodation and delayed payments by oil companies.
DVCF Oil and Gas, which is structured as a one-shop platform to attract both project management expertise and funding seeks to assist local firms in financing projects in the sector.
Its project management package is structured under joint conduct of operations (JCO) to enhance efficiency by ensuring capacity building technical assistance to support the local contractors.
“Specifically,” Eze explained, “our collaboration with the local contractors will cover the provision of engineers in operations management, equity funds injection to moderate the cost of funds and manage timely procurement and delivery of long lead items to meet project commencement, completion and handover.”