The Government of Equatorial Guinea has ordered all petroleum firms operating in the country to terminate their respective contracts with CHC Helicopters International (RBD, Vancouver International) effective immediately.
The Central African state's Ministry of Mines and Hydrocarbons said in a statement issued on July 17 that the decision was based on the Canadian firm's alleged breach and subsequent violation of Ministerial Order No. 1/2014. The law requires all agreements to incorporate local content clauses and provisions for capacity building, with preference given to local companies in the awarding of service contracts. Foreign operators are obliged to ensure compliance of their subcontractors given local shareholders must be part of every contract as prescribed by law.
“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,” Equatoguinean Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima, said in a statement. “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.”
Noble Energy, Exxon Mobil, Kosmos Energy, Trident, Marathon Oil Corporation and other operators have been given 60 days to unwind their contracts with CHC and find new suppliers. Only those companies that comply with local content provisions are allowed to bid for the new contracts.
CHC has since told ch-aviation that it is "confident" that it complies with Equatorial Guinea’s National Content Regulations and that it will continue to engage the Equatoguinean authorities.
"Our operations have been regularly audited and any minor findings have been addressed in our ongoing dialogue with the Minister of Mines and Hydrocarbons," a CHC spokesman said. "We look forward to continuing the conversation with local authorities and look forward to continuing to support our customers and the greater Equatorial Guinean community."
