Bell Oil and Gas has officially launched a state-of-the-art manufacturing facility for Oil Country Tubular Goods (OCTG) in the Lekki Free Trade Zone, Lagos, with a production capacity of 50,000 metric tonnes. This significant development is aimed at eliminating the need for importing OCTG pipes, valves, and other essential materials required for both onshore and offshore oil drilling operations. The facility represents an estimated investment of $100 million over the next five years. Omatsola Ogbe, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), emphasized that the establishment of this indigenous facility is a major step towards enhancing local capabilities within the oil and gas sector and a clear indication of the growth potential of local competence.
During the unveiling ceremony, Ogbe praised Bell Oil and Gas for their dedication to strengthening Nigeria’s energy capabilities and improving local content in the petroleum industry. He noted that the new facility is not merely an infrastructure project but a transformative endeavor that will meet the increasing demand for oil and gas services locally. Ogbe clarified that the concept of Nigerian content extends beyond mere local participation; it also encompasses fostering opportunities for international companies and Original Equipment Manufacturers (OEMs) to engage collaboratively in the oil and gas market while ensuring that Nigerian firms play a substantial role. He reaffirmed that key components such as piping and threading are crucial elements that serve as the backbone of the oil and gas value chain.
As Nigeria strives for energy independence, the significance of reliable piping and threading services becomes increasingly imperative. With major ongoing projects such as the Dangote Refinery and various pipeline developments, the demand for these services is expected to surge. Ogbe highlighted that Bell Oil and Gas is exceptionally positioned to fill this gap, thus diminishing the nation’s reliance on foreign imports while maximizing economic benefits within Nigeria. He also acknowledged the company’s commitment to engaging local talent, which ensures that the oil and gas sector provides ample employment opportunities for Nigerian youths.
Dr. Kayode Thomas, the CEO of Bell Oil and Gas, detailed the project’s ambitious scope, which involves three phases of development, including valve manufacturing, assembly, maintenance workshops, and composite pipe fabrication. The overall cost of the project is estimated at about $100 million, with plans to expand production capacity from the initial 50,000 metric tonnes to 150,000 metric tonnes. Dr. Thomas expressed pride in the venture, noting that it has been a labor of love over the past seven years, culminating in a facility that will be exclusively operated by Nigerians. He stressed the company’s ambition not just to be a local player but a leader in local content development in the Nigerian oil and gas industry.
Despite the potential of the project, Dr. Thomas lamented the lack of interest from local banks in supporting the initiative financially, pointing out a significant barrier that could impede Nigeria’s quest for industrial advancement. He proclaimed that the future of Nigerian industrialization will remain bleak if domestic banks continue to overlook opportunities to support home-grown businesses. Furthermore, he conveyed appreciation for the NCDMB’s ongoing support while advocating for a reduction in bureaucratic obstacles that hinder access to funding.
The facility’s capabilities extend to the fabrication of composite pipes, which offer key advantages over traditional steel pipes, being lightweight and resistant to corrosion. The final phase of the project focuses on producing glass fiber-reinforced epoxy pipes, providing a sustainable alternative that can reduce operational costs over the project life cycle. Folashade Ambrose-Medebem, representing Lagos State Governor Babajide Sanwo-Olu at the unveiling, commended Bell Oil and Gas for its commitment to fostering an industry that leverages Nigerian talent and reduces dependence on imported goods and services. The launch of this facility symbolizes a step forward for localized industrial development and signifies a brighter future for Nigeria’s energy landscape.
