The Shell Petroleum Development Company of Nigeria Limited (SPDC) has embarked on a significant project to boost local content development in the Nigerian oil and gas sector. This involves the in-country fabrication of two Single Point Mooring (SPM) buoys, crucial components for offshore loading of liquids and gas. These buoys, destined for installation at the Bonny and Forcados terminals, represent a technological leap for local manufacturing, marking a departure from the traditional reliance on foreign expertise. SPDC’s decision to award this complex project to Prime Sources Limited (PSL), an indigenous Warri-based company, underscores its commitment to fostering Nigerian capacity and expertise within the industry.
PSL’s achievement in securing and executing this contract signifies a major milestone, not only for the company but also for the broader narrative of local content development in Nigeria. The fabrication adheres to stringent international quality standards, as verified by Det Norske Veritas (DNV), a renowned international registrar and classification society based in Norway. Further bolstering the project’s credibility is the involvement of IMODCO, a French company and PSL’s technical partner, which has provided resident engineers to oversee the process. This collaborative approach ensures that the final product meets global best practices while simultaneously nurturing local talent.
The project has garnered significant praise from various stakeholders. The Nigerian Content Development and Monitoring Board (NCDMB), a key regulatory body tasked with promoting local participation in the oil and gas industry, lauded SPDC’s commitment to local content development. NCDMB Executive Secretary, Felix Omatsola Ogbe, emphasized the importance of trusting indigenous companies with complex projects and acknowledged PSL’s timely and safe execution of the project. Furthermore, community leaders representing both the Ijaw and Itsekiri Kingdoms expressed their gratitude for the project and pledged their continued support for business development in the area. This positive feedback from regulatory bodies and local communities emphasizes the project’s multifaceted benefits, extending beyond just technical achievements to encompass economic empowerment and community development.
SPDC’s investment in local capacity building resonates throughout the project. Mrs. Elozino Olaniyan, SPDC Director and General Manager for Safety and Environment, Conventional Oil and Gas, highlighted the project as a testament to Shell’s commitment to Nigeria’s economic growth and the advancement of local vendors. Chris Ubuane, Project Manager for SPDC’s Domestic Gas, Forcados Yokri Integrated Project and Terminals, further elaborated on the impressive local content quota, stating that over 90% of the project team comprises Nigerians, covering a wide range of roles from project management and engineering to skilled trades like welding, fitting, and painting. This hands-on experience empowers Nigerian professionals with valuable skills and expertise, contributing significantly to the long-term development of the country’s human capital within the oil and gas sector.
The successful execution of the SPM buoy fabrication by PSL showcases the potential of Nigerian companies to undertake complex engineering projects. Francis Anyakwo, Managing Director of PSL, expressed gratitude to SPDC for the opportunity and acknowledged the crucial role of the NCDMB in supporting PSL’s growth into a major subsea contractor in the oil and gas industry. This project serves as a case study for the successful implementation of local content policies and demonstrates the potential for further growth and development within the Nigerian oil and gas sector. The transfer of technology and development of local expertise are crucial outcomes, paving the way for increased self-reliance and reduced dependence on foreign expertise in the long term.
The project transcends its immediate impact of delivering two SPM buoys; it represents a significant investment in Nigeria’s future. The collaboration between SPDC, PSL, NCDMB, and the local communities has fostered a strong ecosystem for sustainable development within the oil and gas sector. The project’s success provides a compelling argument for continued investment in local capacity, demonstrating the potential of Nigerian companies to deliver world-class results while simultaneously contributing to economic growth, community development, and the advancement of local expertise. This initiative sets a precedent for future projects, encouraging greater participation of indigenous companies in technically challenging endeavors within the Nigerian oil and gas industry.
