Paragraph 1: NCDMB’s Commitment to Local Content Development in Nigeria’s Oil and Gas Industry
The Nigerian Content Development and Monitoring Board (NCDMB) has reaffirmed its commitment to fostering collaboration with international oil companies (IOCs) to propel the development of new projects in Nigeria’s oil and gas sector. This renewed commitment underscores the NCDMB’s crucial role in driving local content development and maximizing the participation of Nigerian companies in the industry’s value chain. The agency’s active engagement with IOCs aims to leverage their expertise and investment while simultaneously empowering local businesses and creating employment opportunities for Nigerians. This collaborative approach forms a key component of the NCDMB’s strategy to boost the nation’s economy and solidify Nigeria’s position as a major player in the global oil and gas landscape.
Paragraph 2: NCDMB’s Site Visits and Project Facilitation
To further solidify this commitment, the Executive Secretary of the NCDMB, Felix Ogbe, recently conducted site visits to key oil and gas facilities in Nigeria. This included visits to Samsung Heavy Industries Nigeria (SHIN) and Africoat Nigeria Limited, both situated at Takwa Bay, Lagos. These visits represent the NCDMB’s proactive approach to assessing the capabilities of local companies and ensuring their readiness to participate in ongoing and upcoming projects. Ogbe emphasized the NCDMB’s active role in expediting approvals for crucial projects such as TotalEnergies’ Ubeta gas development, Shell Nigeria Exploration and Production Company Limited’s (SNEPCo) Bonga North deepwater project, and ENI and Shell’s Zabazaba deep-water venture. He also highlighted the ongoing preparations for SNEPCo’s HI and HA gas projects, further demonstrating the NCDMB’s dedication to facilitating project development and ensuring timely execution.
Paragraph 3: Leveraging Local Capabilities and Aligning with National Economic Objectives
The NCDMB’s focus on local content development directly aligns with President Bola Tinubu’s economic agenda. By prioritizing the involvement of Nigerian companies in key project scopes, the NCDMB aims to stimulate job creation, revitalize the economy, and drive sustainable growth within the oil and gas sector. The NCDMB’s mandate, as enshrined in the Nigerian Oil and Gas Industry Content Development Act, requires IOCs to utilize local firms with demonstrable capabilities, thus ensuring that Nigerians benefit directly from the industry’s activities. This strategic approach fosters technology transfer, skills development, and the overall growth of the Nigerian oil and gas ecosystem.
Paragraph 4: Samsung Heavy Industries Nigeria’s Capacity and Contributions
During the visit to SHIN, Managing Director Jin Lee showcased the company’s substantial in-country capabilities, including heavy fabrication and FPSO integration quayside. He highlighted SHIN’s significant experience in executing major oil and gas projects, particularly the fabrication and integration of six modules for TotalEnergies’ Egina FPSO in 2018. This project not only demonstrated SHIN’s technical prowess but also contributed significantly to local employment, with over 1,000 Nigerians employed at the peak of the project. Furthermore, SHIN’s commitment to skills development was evident through its training program, which produced 560 certified welders, including women, during the Egina project. This investment in human capital underscores SHIN’s commitment to sustainable local content development.
Paragraph 5: SHIN’s Future Aspirations and Export Potential
Despite a current reduction in workforce due to project cycles, SHIN maintains a database of skilled professionals, ready to be re-engaged for future projects. The company also harbors ambitious plans to expand its operations beyond servicing domestic projects, aspiring to manufacture oil and gas components and equipment in Nigeria for export to other parts of the world. This vision leverages Nigeria’s strategic geographical location and SHIN’s existing infrastructure, potentially positioning Nigeria as a key exporter of oil and gas equipment and generating further economic benefits for the nation.
Paragraph 6: Africoat Nigeria Limited’s Challenges and Potential
The visit to Africoat Nigeria Limited revealed the challenges facing the company, primarily a protracted dispute with its bankers and landlord, Lagos Deep Offshore Logistics. This impasse has prevented the $42 million corrosion and concrete weight coating plant from operating since its completion in 2017. The NCDMB Executive Secretary, Felix Ogbe, urged Africoat’s management to prioritize resolving this dispute, recognizing the potential of the plant to contribute significantly to the industry, create jobs, and generate returns for investors. Africoat’s Managing Director, Frank Twynam, confirmed ongoing efforts to resolve the situation and outlined a robust plan to rehabilitate and operationalize the facility once the dispute is settled. The successful resolution of this issue would unlock significant potential for Africoat and contribute further to the growth of Nigeria’s oil and gas services sector.
