Nigerian Content Development & Monitoring Board sign MOU with CWC Group on PNC Forum

NCDMB reinforces its commitment to the Practical Nigerian Content (PNC) Forum held annually with the signing of a MoU with the CWC Group.

Under the terms of the MoU, the NCDMB & CWC alongside Nigerian partner, Levmora Services will collaborate to deliver greater value through PNC. This will be achieved by further engaging with the relevant Government Parastatals and private sector players. Ensuring the pertinent issues surrounding Nigerian Content regulation and implementation discussed at the conference unlocks opportunities, and drives progress in the Nigerian oil and gas industry.

Set to take place in Uyo, Akwa Ibom from 6 – 9 November 2017, PNC will provide a platform for senior industry stakeholders to discuss the current challenges being faced within the market, explore solutions and define action points over the next 12 – 18 months. Engr. Simbi Kesiye Wabote, Executive Secretary, NCDMB announces “I look forward to welcoming oil and gas industry players to what promises to be a useful and impactful gathering”.

The CWC Group, having produced conferences and exhibitions for the Nigerian Oil & Gas industry for over 17 years, has been rightly questioned about its level of Nigerian Content compliance, being that it is based in the United Kingdom and produces events for the Nigerian Oil & Gas industry.

Following the enactment of the Nigerian Oil & Gas Industry Content Development Act (NOGICDA) the CWC Group launched the PNC Conference in 2011. Through their partnership and consultation with the NCDMB, from 2013, CWC were required to increase domestic capacity through partnerships with local companies, training of indigenous personnel and increasing the number of local suppliers patronised.

Over the last 4 years, CWC has complied with the list of requirements outlined by the NCDMB; forming partnerships with indigenous companies including Levmora Services and Proxima Energy. At the latter part of 2013, CWC formed a partnership with AEG and has trained their staff to take over roles previously domiciled in the UK. This has reduced the number of UK based staff travelling to Nigeria to execute CWC events by an average of 58% with internationally based employees being shadowed by AEG staff.

Across all events, 98% of suppliers engaged in the preparation and execution of the event are indigenous. “Over the past 5 years, we have made some real strides in developing capacity within the events space for the oil and gas industry in Nigeria, thanks to the support of the NCDMB. There is still work to be done and CWC remain committed to creating platforms for senior decision makers to devise strategies that will steer Nigeria’s energy industry towards sustainable growth. We are grateful for the support and collaboration of both the public and private sectors, and we look forward to highlighting the investment opportunities in the industry, and the role of Nigerian Content in unlocking the full potential of the Nigerian oil and gas industry.” Vice President – Production, Wemimo Oyelana, CWC.

The CWC Group’s activities in Nigeria also strive to support development across the country. The company is a proud supporter and active member of the Nigerian Business Coalition against Aids (NiBUCAA) and the Sickle Cell Aid Foundation. CWC regularly provides support for both through funding, donations and marketing campaigns.

Find out more at www.cwcpnc.com or please contact Odiri Umusu on +44 207 978 0083 or +234 813 893 8564 or email pnc@thecwcgroup.com

NCDMB targets $200m for Nigerian Content Fund

 to unveil updated MoU with Bank of Industry

The Nigerian Content Development and Monitoring Board (NCDMB) is planning to increase the funds lent to qualified oil and gas players under the Nigerian Content Intervention Fund (NCI Fund) from $100m to $200m.

The Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote stated this during a visit to the new Managing Director of the Bank of Industry (BOI), Mr. Olukayode Pitan, in Lagos recently.

An increase of the pool would ensure that more deserving companies benefit from the Fund at the same time, he said.

He explained that the new governance framework for the Fund had been finalized and the updated Memorandum of Understanding (MoU) with the BOI will be signed within the next few weeks to signal the take-off of the scheme.

Key features of the NCI Fund according to the Executive Secretary are that the loans will be disbursed directly by the BOI at single digit interest rate and repaid within five years.

Wabote stressed that only contributors to the Nigerian Content Development Fund (NCDF), with bankable proposals in the oil and gas industry can approach BOI for the NCI Fund facility.

He noted that whereas there were various intervention funds for other critical sectors of the economy like agriculture, aviation, mining and others, there was none for the oil and gas sector before now.

The NCDMB and BOI launched the NCI Fund in July 2016 with $100m but it suffered delays as efforts were being made to fine-tune the governance process.

The NCI Fund replaced the original model whereby the NCDF provided partial guarantees and 50 per cent interest rebate to service companies who obtained facilities from commercial banks for asset acquisition and projects execution. Industry stakeholders experienced difficulty accessing funds under NCDF model, necessitating a change of strategy by the Board.

Industry stakeholders, including the Petroleum Technology Association of Nigeria (PETAN) had described the NCI Fund model as a great initiative that would address the paucity of funding and inability to access credit which often beset manufacturers, service providers and other key players in the Nigerian oil and gas industry.

In his comments during the visit, the Managing Director of BOI expressed delight at the partnership between the Bank and NCDMB. He said BOI has presence in 21 states of the federation and is well positioned to support the Board achieve it objectives in effective loans disbursement and management for the oil and gas industry.

Pitan assured that BOI will work with NCDMB to source additional pool of funds for this vital sector of the economy.

The NCI Fund is sourced from the statutory NCDF which is funded from one percent that is deducted from the value of all upstream contracts. The NCDF is underpinned by Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which provides that the funds be used for developing capacity in the oil and gas industry. Subsection 3 of Section 104 also provides that “the fund shall be managed by the Nigerian Content Development Board and employed for projects, programmes and activities directed at increasing Nigerian Content in the oil and gas industry.”

The Board set up an advisory committee in 2012 for the NCDF, with a view to deepen transparency and ensure involvement of key stakeholders in the administration. Representatives of the international operating companies, PETAN, Oil and Gas Trainers Association (OGTAN) and BOI make up the advisory committee.

Architects seek Nigerian Content in the Construction Industry

Impressed by the impact of the Nigerian Content Act on the oil and gas industry, the Nigerian Institute of Architects (NIA) has called for the extension of the policy to the construction industry.

The NIA made the call during a visit to the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote at the Board’s headquarters in Yenagoa, Bayelsa State.

President of the Institute, Arc. Tonye Braide, who led the visit, commended the giant strides achieved by the NCDMB in the past seven years of implementing the Nigerian Content Act, noting that the Board has contributed significantly to transforming the nation’s economy. He noted that “the experience gained in this rather complex climate could be brought to bear on other sectors of the Nigerian economy.”

He noted that the Nigerian Institute of Architects has an operating contract with the NCDMB through the Nigerian Content Consultative Forum (NCCF), which he described as a laudable effort to extend Local Content principles to the supporting value chain of the oil and gas industry.

According to him, the NIA is eager to expand Local Content to the construction industry and one of the strategies is by embarking on mass fabrication of building components, which will contribute significantly in reducing the country’s housing deficit and open avenues for the development of affordable housing for the people.

The NIA helmsman requested the Board’s support for the establishment of Light Industrial Parks for the manufacture of building components. He said “The Niger Delta region is a wide catchment for the fabrication of building materials and components with abundant gas reserves. This region can provide all the building components requirements for the Nigerian construction market and indeed all West African market.

“Light industrial park fired by gas should be developed in all states in the region and eventually all local government areas to create an economy of scale that will provide disposal prices at par with global benchmarks.”

Speaking further, Braide commended the Board for awarding the contract for the construction of its head office building project to an indigenous firm, Megastar Technical & Construction Co. Ltd. He stated that “this is a landmark structure symbolizing the capacity of Nigerian Content in design and construction and shall stand as a beacon of hope for all architects affirming that the Nigerian architectural product could be at par with the very best in the world.”

NCDMB targets 100% domiciliation of FPSO integration

…may establish Nigerian Content Bank
… says local coys default on remittance of NCDF

The Nigerian Oil and Gas industry will between now and year 2027 aspire to domesticate the full capacity and capability required for the integration of Floating Production Storage and Offloading vessels (FPSO), the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote has said.

He gave the target at the public hearing conducted by the Joint Senate Committee on Petroleum Upstream and Gas in Abuja on Tuesday, with the intent to determine the extent of compliance with the Nigerian Content Act and utilization of the Nigerian Content Development Fund (NCDF).

The new target for the industry follows from the successful in-country fabrication of six modules of the Total Egina FPSO and scheduled integration of the modules on the FPSO at the SHI-MCI yard in Lagos in September 2017, the first time these feats would ever happen in Nigeria. The FPSO is the biggest component of a deepwater oil and gas project and the fabrication and integration of the modules at any location spurs multi-dimensional development and creates thousands of jobs.

Another major target of the Board according to the Executive Secretary is to establish a Local Content Bank of Nigeria “to focus on establishment of facilities for domiciliation of services with emphasis on optimal use of local resource input.”

Dwelling on the achievements of the Board, Wabote confirmed that Nigerian Content activities recorded six million training man hours and is now able to retain $5bn in the local economy from the annual $20bn industry expenditure, which ended up in foreign economies in the past.
He stated that 36 percent of the marine vessels operating in the Nigerian Oil and Gas Industry were now owned by indigenous players, a marked improvement from total foreign domination of the industry before the implementation of the Act.

Speaking further, Wabote cited the establishment of five world class fabrication yards as another evidence of Nigerian Content implementation, adding that “today, Nigeria is able to handle 60,000 metric tonnes of fabrication in-country.”
He also mentioned the local manufacture of barites which is required for crude oil drilling operations, noting that NCDMB worked with the industry to support the establishment of a mechanized plant in Benue State for barites mining and beneficiation.
On the NCDF, the Executive Secretary reported that international oil companies comply reasonably in remitting one percent of the value of their contracts but some service companies and indigenous operating firms default in their payment.

He regretted that the impact of Local Content in the oil and gas sector had not been sufficiently linked to other sectors of the economy and canvassed for the support of key government agencies in deepening Local Content in the country.

In his welcome address, the Senate President, Dr. Bukola Saraki, represented by Senator, Ahmed Lawan, Leader of the Senate, highlighted the importance of Local Content in economic development, adding that full implementation would help create employment and grow the national economy. He explained that the National Assembly was keen to ensure that oil and gas companies comply with the Nigerian Content Act, especially in the employment of competent Nigerians and utilization of local good and services in their operations.
In his contribution, Chairman Senate Committee on Gas, Senator Bassey Albert Akpan asked the Board to submit a detailed report on the operations of the NCDF from inception. The report would include information on the beneficiaries, defaulting firms and amounts.

He expressed disappointment that only three companies have benefitted from the NCDF since inception, stressing that “there is no need to warehouse the funds with CBN while Nigerian companies are suffering from lack of capital. There is no way they can build capacity.”

In his submission, Chairman of PETAN, Mr. Bank-Anthony Okoroafor asked the Senate to support the NCDMB to ensure that at least 20 indigenous companies accessed the NCDF every year.
He also proposed a guideline that would ensure that “companies that bid as lead tenderers should have the capacity to carry out more than 80 percent of the required work scope while companies that have not built capacity should bid as sub-contractors.”

“Contract execution and distribution strategy should be such that Nigerian companies with proven capacities should be given preference in terms of percentage of work allocation. In addition, Nigerian companies should be given preference when reallocating any scope of work that could not be handled by the incumbent contractor.”
The public hearing featured presentation by other stakeholders of the industry, including the Oil Producer Trade Section (OPTS), Nigerian Shippers Council, Petroleum and Natural Gas Senior Staff Association (PENGASSAN) Nigerian Medical Association, Institute of Chartered Accountants (ICAN), Nigerian Economic Summit Group (NESG) among others.

Nigerian Content is good for business-ExxonMobil MD

-NCDMB warns against single sourcing, selective tendering

Compliance with the provisions of the Nigerian Content Act is not only a legal and moral obligation for operating and servicing oil and gas companies but also a good strategy for improving profitability and sustainability of operations, the Managing Director of ExxonMobil Nigeria, Mr. Paul McGrath has said.
He spoke on Thursday in Lagos when he received the management of the Nigerian Content Development and Monitoring Board (NCDMB), led by the Executive Secretary, Engr. Simbi Wabote.
He promised that ExxonMobil will collaborate with the Board to achieve its mandate, assuring that “together we can transform things.”

He added that the company would also seek the Board’s guidance and assistance when faced with difficulties and exigencies of business. “The new leadership has zero tolerance for Nigerian Content violations and non-compliance issues. If we must do, we have to first discuss with NCDMB for guidance.”
He also underscored the collaboration ExxonMobil had enjoyed from the NCDMB over time, which contributed to the company’s successes.

The MD also pledged the company’s support for the Board’s initiatives, stating that it is open to staff exchange between the two organisations and is working to open a liaison office in the Board’s new headquarters, when completed in Yenagoa, Bayelsa State.

In his presentation, Engr. Simbi Wabote explained that the visit was in line with the Board’s efforts to encourage and support operating companies to introduce and execute new projects needed to sustain and grow Nigerian Content in the oil and gas industry.

He reiterated the Board’s determination to shorten the industry contracting cycle, which informed the adoption of definite timelines for statutory approvals and pioneering the development and use of Service Level Agreements (SLAs). The first SLA was signed between the Board and the Nigerian Liquefied Natural Gas Company (NLNG) and it commits the parties to compliance with Nigerian Content Act and timely approvals of documents respectively. The model will soon be replicated with other operating companies.
Wabote also advised ExxonMobil to begin early to engage the Board on the development of its Owowo field to enhance utilization of in-country capacities.

Speaking further, the Executive Secretary cautioned operating companies against engaging in single sourcing and selective tendering, stressing that reasons for such must be justifiable and discussed with the Board ahead of execution. He also warned companies against irregular spot hiring and utilization of vessels under the guise of emergency.

On the status of the Nigerian Content Intervention Fund (NCIF) Wabote explained that disbursement to deserving companies was yet to start because the Board is working to perfect the governance process. He added that the Funds would only be disbursed through a banking process, after proper risk assessments so as to create the needed confidence and trust.

Community contractors to get Content Fund at 5%

Community contractors in the oil and gas industry will only pay five percent interest rate when they access the Nigerian Content Intervention Fund (NCI Fund), the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has said.

He stated this at the interactive session the Board organised recently in Abuja for civil societies organisations (CSOs), adding that such contractors execute small scale projects and would not pay the same interest rate like conventional oil and gas service companies.

The concession for community contractors is in line with the Board’s Community Content Guideline and provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. The intent is to promote the participation of genuine community contractors in oil and gas projects and integration of communities in the industry value chain as part of the strategy to grow the local economy and promote peace and tranquility in the communities.

The Executive Secretary also promised that disbursement of the Content Fund to oil and gas companies will start this year. The loan will be disbursed directly to qualifying companies by the Bank of Industry (BOI) and repaid within five years at eight percent interest rate. The NCI Fund, he explained will cater for manufacturing, project financing and equipment purchase. A key consideration for granting loan for a project is the impact it would make, he clarified.
On the Board’s plan to establish a Nigerian Content Bank, Wabote said the financial institution will ultimately manage the utilisation of the Fund. “Within the next four years, we will have established the Bank and established a good governance process. We will have key stakeholders, including the civil society as part of the Advisory Board to guard against misapplication,” he stated.

Acknowledging the positive roles played by civil society organisations in the society, the Executive Secretary said the Board will work with Nigerian Extractive Industries Transparency Initiative (NEITI) to develop a sustainable model that will guide the participation of CSOs in Nigerian Content implementation.
In his goodwill message, the Director of Communications at NEITI, Dr. Ogbonnaya Orji described the Board’s engagement with civil society organisations as confirmation of its disposition to openness, integrity and corporate governance. He noted that CSOs could assist the Board to push the boundaries of implementation and carry out advocacy campaigns.

Orji described the Board’s plan to establish Nigerian Content Bank as a novel idea that should be realized. He further advised the Board to educate Nigerians sufficiently on the operations of the Nigerian Content Development Fund (NCDF), sanction companies that fail to remit one percent value of their contracts to the NCDF and give incentives to those that comply.

Several civil society groups like Socio-Economic Rights and Accountability Project (SERAP), Democratic Action Group, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the Nigerian Bar Association (NBA), Centre for Policy among others participated in the event.

NCDMB commends Bayelsa Airport Project

The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has commended the airport project being undertaken by the Bayelsa State Government, describing it as a key infrastructure that will attract oil and gas investments to the state.

The Executive Secretary stated this after he inspected the airport site at Amasoma, Southern-Ijaw LGA, in company with officials of the state government.

Engr. Wabote who commended the quality of work, noted that the airport runway, said to extend to three kilometers would be the first of its kind in Nigeria. He added that the project would contribute to the economic transformation of Bayelsa State if properly managed and linked to other developmental initiatives. “The right quality is being maintained and this can stand any airport of its kind in any part of this world.”

Speaking further, Wabote called for more publicity on the airport project so that the private sector across the country would be aware. “Just like me, everybody will think that it’s probably an airstrip that is being constructed. But we can see the quality of contractor being used here. This is Dantata and the company has done similar projects all over Nigeria. The state government needs to bring more people here and talk about it.”

Speaking further, the Executive Secretary pledged to publicise the airport project so that oil and gas stakeholders can support it.

The Board’s support of the Bayelsa State’s developmental projects is in line with the goals of the Petroleum Industry Roadmap, which includes attracting investments to the Niger Delta region. This will help enthrone a favourable security climate that will allow for oil and gas operations to thrive.

Engr. Wabote played a key role in the construction of the Osubi airport in Warri, Delta State years ago while working for Shell Petroleum Development Company (SPDC).

Dorman Long trains 78 persons in Non-Destructive Testing, Project Management

Dorman Long Engineering limited, an indigenous oil and gas servicing company with competencies in fabrication, EPC, asset management, procurement and logistics has trained 39 young persons in Non-Destructive Testing (NDT) and 39 others as Project Management Professionals.

The trainings were sponsored by Hyundai Heavy Industry (HHI) as remediation for violating the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. HHI deployed expatriates to work on Chevron Nigeria Limited’s SONAM topside development project without requisite approvals from the Nigerian Content Development and Monitoring Board (NCDMB).

One of the new pragmatic initiatives of the Board is to compel operating and service companies found guilty of non-compliance to provide restitution in the form of capacity development initiatives (CDIs). The Board decides the CDI based on the gravity of non-compliance.

This particular training programme lasted for 12 weeks and ended on June 19, 2017.

Speaking at the close-out ceremony, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote thanked Chevron Nigeria Limited and Hyundai Heavy Industry for building the capacity of Nigerian youths and imbuing them with knowledge that will promote Local Content in the oil and gas industry.

Represented by the Supervisor in the Monitoring and Evaluation Directorate (MED), Mr. Adike Kopiam, the NCDMB boss described the Board’s Human Capacity Development Initiatives as a key evidence of the success of the Local Content policy as it empowers Nigerian youths with various specialties and helps them secure employment in the industry.

In his remarks, the Managing Director, Dorman Long Engineering, Mr. Giorgio Macchiavello congratulated the trainees on completion of the programme and urged them to be diligent in their future endeavors.

Also speaking at the close out ceremony, the Nigerian Content Adviser, Chevron Nigeria, Mr. Obiora Iroegbu charged the graduands to be good ambassadors of the programme, assuring that they would be contacted and employed if employment opportunities opened up in their establishments.

The Nigerian Content Coordinator, HHI, Mr. Prince Nwosa also thanked NCDMB for ensuring strict compliance to the NOGICD Act 2010 and making sure Nigerians gets jobs in the oil and gas industry. He also commended CNL for contracting the SONAM project to HHI and expressed hope that the second batch of the training programme will commence without delay.

NCDMB partners NUJ on capacity building for journalists

The Nigerian Content Development and Monitoring Board has expressed its preparedness to partner with the Nigeria Union of Journalists, Bayelsa State Council, on building capacity for journalists in the state. The Executive Secretary, NCDMB, Mr. Simbi Wabote, made this known when he received a delegation of the NUJ led by the state chairman, Mr. John Angese, at the board’s headquarters in Yenagoa. Wabote described the journalism profession as a noble one, saying that training and re-training were vital for journalists “to be able to write factually about issues” not only in the oil and gas sector but also in other areas of the society.

The NCDMB boss called on journalists to amplify the positive impact of the board in the oil and gas sector of the country. He also urged journalists to also come up with constructive criticism in order to help the board improve on its mandate. Wabote said, “Part of what we do on the board is also capacity building. Capacity building is not just limited to the oil and gas sector. What you (journalists) do is also, in a way, tied to the oil and gas sector because if you don’t write about what is happening in the oil and gas sector, and if you don’t know what is happening there, it is difficult to communicate what is going on in the oil and gas sector.

“We might do all the technological things; when it comes to telling what we have done, we are not gifted in that area, and you guys have the gift of the pen to be able to communicate that to the layman through your profession. “So we would partner with you to build capacity because it is necessary to enhance your capacity to be able to write factually about the issues at stake”.

In his remarks, the state chairman, NUJ, Mr. John Angese, congratulated Wabote on his appointment as the Executive Secretary of the NCDMB. He stressed the need for a consistent interface to improve relations between the board and the council.

 

NCDMB, Dangote Group begin collaboration on refinery project

…Coy targets Local Content record

The Nigerian Content Development and Monitoring Board (NCDMB) and Dangote Industries Limited have begun to collaborate towards ensuring maximum utilization of local capacities in the construction of the company’s 650,000 barrels petroleum refinery plant.

The company also pledged among other things, to utilize certified Nigerian service companies for the fabrication of modules, pipe coating as well as the supply of paints and cables.

In addition, the two organisations will hold a technical meeting and undertake a tour of the project site to examine extensively other Nigerian Content opportunities that can be utilised on the project. The collaboration was agreed on Thursday in Lagos after the Executive Secretary, NCDMB, Engr. Simbi Wabote led a team from the Board to meet with the management of Dangote Group, led by the President, Alhalji Aliko Dangote.

Responding to the presentation made by the Executive Secretary outlining existing Nigerian Content capacities and capabilities and how they can contribute to the refinery project, Engr. Joseph Makoju, the Honorary Adviser to the President, Dangote Group, confirmed that “there are a number of opportunities for collaboration. We want to partner with you and we hope to have mutual beneficial relationships.”

Makoju noted that the company planned to set a record on Local Content accomplishment with the petrochemicals plant, which would be biggest single train refinery in the world.

He identified the Dangote Academy as another platform for collaboration, especially as the company was gearing up to extend the institute’s focus from the cement industry to include the petroleum industry and other key sectors that it operates.

Earlier in his presentation, Wabote commended the President of Dangote Group for his investments in manufacturing across sectors of the economy, which has created employments for thousands of Nigerians.He expressed confidence that the company’s foray into the downstream sector of the petroleum industry would revolutionize the sector and reverse the continued dependence of the nation on imported petroleum products.

The Executive Secretary informed the Dangote team that the implementation of Nigerian Content Act in the upstream sector of the oil and gas industry had developed huge capacities that should be leveraged for the refinery project.

He advised the company to pay assessment visits to oil and gas service companies in Nigeria to verify their capacities and subsequently contract them in line with the provisions of the Nigerian Content Act, which mandates patronage of facilities established in-country.

Wabote clarified that companies operating in the downstream sector of the petroleum industry were excluded from remitting one percent of their contract sums to the Nigerian Content Development Fund (NCDF). However, the law mandates the downstream companies to abide with other provisions of the act which includes the provision of fair opportunities to Nigerian companies to compete for jobs in the downstream sector.

On the extensive plan to select and train local personnel who would run the refinery proficiently, he encouraged the company to pick the trainees from the Nigerian Oil and Gas Industry Joint Qualification System (NOGICJQS), which has database of Nigerians with various competencies in the oil and gas sector. He also asked the Dangote Group to engage the Oil and Gas Trainers Association (OGTAN) because members of the group had developed capacity and can provide some of the trainings being envisaged by the company for new hires.