Full integration of FPSO ll’ happen in 8 years-Wabote

…FG to prioritize oil productions with competitive costs -Kachikwu
The Nigerian oil and gas industry must strive to develop local capacities to execute full fabrication and integration of Floating Production Storage and Offloading (FPSO) vessels in-country within the next eight years, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has said.
He spoke on Tuesday in Lagos when he accompanied the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu and other top officials of the oil and gas industry to inspect the Total Exploration and Production Nigeria Limited’s Egina FPSO docked at the SHI-MCI Yard, LADOL Free Zone.
The Executive Secretary commended Total E&P for setting high Nigerian Content benchmarks with the Egina project, in engineering, fabrication, testing, coating and integration, stressing that the challenge for forthcoming projects would be how to raise the bar. “Our aim is to stretch the limit to get more for Nigeria. Our aspiration is that come the next seven to eight years, full integration of an FPSO must happen in Nigeria.” Already the Board and major operating companies are working towards full domiciliation of FPSOs. The Zabazaba deepwater project being promoted by Nigerian Agip Exploration Limited (NAE) in partnership with Shell Nigeria Exploration and Production Company (SNEPCo) and the Bonga South West Aparo (BSWA) deepwater project also developed by SNEPCO have been planned to domicile 50 percent of the fabrication of modules and integration of the FPSOs.
He also charged other operating companies in Nigeria to take a cue from Total’s can-do attitude and their fervent belief in the Nigerian capability. “When the oil price fell to almost $27 a barrel, they did not stop the project. They continued and Nigerians were engaged.” The first key step he said, is for companies “to stop looking for waivers and change the default thinking from ‘it cannot be done here’ to ‘what do we need to do to make it happen’.”
The NCDMB boss also affirmed that the Egina project has changed the narrative about the capacities and capabilities of oil servicing companies in Nigeria. According to him, “the project simply raised the bar in local participation in various scope covering the Wells, Subsea Production Systems, Umbilicals, Flowlines and Risers, FPSO topsides, and Offloading buoy. “One of the Nigerian contractors that fabricated the Buoy completed it three months ahead of schedule. The argument often put forward by project promoters is that Nigerian Content is expensive and cannot deliver on schedule. Egina has buried that mindset for forever.”
He also underscored the need for new projects to sustain the achievements and employments that were created on the Egina project.

In his remarks, the Minister of State for Petroleum Resources commended Total for the feat noting that local capacities deployed to fabricate the Egina FPSO was sufficient to solve the nation’s electricity challenges, refine petroleum products to meet the needs of the populace, build durable roads and address other infrastructural deficiencies.
Kachikwu charged project promoters in all spheres of the energy sector to fast track their projects, noting that the Federal Government was in a hurry to industrialize the nation and increase the volume of crude oil production at competitive costs.
In view of the oil prices which currently hover within the range of 60 dollars per barrel, the Minister informed that the Federal Government will soon prioritize oil production from fields that bring more returns to the nation as against others that operate with high production costs. He said, “we will begin to pay more emphasis on where we make more money. As you look at your numbers and the terms under which you want to develop these fields, please spend a good amount of time in checking the bottom-line and what goes to the Federation Account. There is no need building a huge $70 billion facility without commensurate value addition. Those kinds of things wouldn’t happen anymore. So the terms will change and basis on which you will proceed will change.”
Also speaking, the Managing Director of LADOL, Dr. Amy Jadesimi highlighted the key roles played by the Board on the Egina project. She said, “the feat would not have been possible if NCDMB had not insisted and if Total had not taken a huge risk when nobody thought it was possible to support us. I also want to thank NCDMB for providing us the financial support.”

NCDMB donates wheel chairs, crutches to group

As part of its corporate social responsibilities and support to its host communities, the Nigerian Content Development and Monitoring Board (NCDMB) recently donated some items to the Joint National Association of Persons with Disabilities, Bayelsa State Chapter.

The items which included wheel chairs, crutches, blind guards and elbow crutches were presented to the representatives of the group led by the President, Mr. Binabo Duoduo at the Board’s headquarters in Yenagoa, Bayelsa State.

The General Manager, Corporate Services and Logistics, Mr. Abdulmalik Halilu who presented the items on behalf of the Executive Secretary of the NCDMB, Engr. Simbi Wabote, explained that the donation was part of the Board’s efforts to impact the society positively.

He charged the leadership of the group to ensure that the items get distributed fairly and to always use dialogue in engagements with government agencies and other corporate organisations.

He pledged the Board’s readiness to organise skill acquisition and other training programmes for members of the group.

Speaking after receiving the items, Mr. Duoduo thanked the Board for its kind gesture, noting that the items will improve the quality of lives of the members.

He further requested the Board to consider qualified members of the group for employment and training opportunities within the oil and gas sector.

Egina recorded over 50% Nigerian Content

…100% implementation of Content Act might stop oil production

..Why we gave few waivers on Egina project

Nigerian Content achievement recorded on the Total Upstream Egina deepwater project exceeded 50 percent, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote said on Wednesday.

He stated this in Abuja at the ongoing Public Hearing organised by the Senate Ad-Hoc Committee investigating the $16 billion Egina Project.

He said the Board set out to achieve 60 percent Nigerian Content on the project but realized over 50 percent, which he described as commendable because the execution of Egina set new benchmarks and domiciled new capacities and facilities in-country, one of which is the FPSO integration facility at the SHI-MCI yard located at the LADOL Free Zone, Lagos.

Speaking further, the Executive Secretary clarified that crude oil production which is the main stay of the Nigerian economy might be shut down if the NCDMB were to enforce full implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. He stressed that some targets set in the Act were aspirational and not attainable at the moment because of limitations in capacity and technology.

He cited an example with Section 53 of the NOGICD Act which mandates that all fabrication and welding activities must be carried out in Nigeria, yet there are yet no dock yards in-country where the hull of big vessels such as the Egina FPSO can be fabricated from scratch.

According to Wabote, “If we are to implement the Nigerian Content Law 100 percent, we will have to stop oil production in Nigeria, develop non-existing capacity, then start production again. The Board enforces the law with pragmatism. Ninety-five percent of our construction in the oil industry is steel, yet we do not have a steel mill in Nigeria. The oil and gas industry depends on sectoral linkages to deliver on some items. Moreso, Local Content is a marathon race and not a sprint.”

On why the Board granted some waivers for the importation of certain equipment used on the Egina project, Wabote explained that some equipment used in the oil and gas industry were proprietary, like the Christmas Tree, while some raw materials were not available in Nigeria. “In such instances, the operator or contractor would request the Board for permission to import. When we give such waivers, we also mandate the companies to execute Capacity Development Initiatives (CDI) to close the capacity gaps,” he said.

He explained that before a vendor would receive a waiver to procure items from abroad, it must show evidence that it is fully established in-country, employs Nigerians, and has made investments.

He admitted that a number of contractors contravened the Nigerian Content Act during the execution of the Egina project, noting that such vendors were by sanctioned by the Board.

The NCDMB boss also canvassed for the amendment of Section 68 of Nigerian Content the Act which provides that contractors that violate the Act could only be punished after conviction in the law court.

He also sought the support of the National Assembly to compel government owned oil and gas companies patronise facilities that have established capacities in-country.

N/Delta students get career talk, courtesy NCDMB

In furtherance of its capacity building mandate, the Nigerian Content Development and Monitoring Board (NCDMB) has concluded the first phase of the career counselling sessions for science students from selected secondary schools across the nine oil producing states.
The sessions were organised with the goal of influencing the students to pursue careers in strategic sectors of the economy, particularly in engineering related courses which is the core for national development. The students were also advised on the subject combinations they should select while applying for courses in higher institutions as well as the professions they needed to study to stand a good chance of securing employment in the oil and gas industry and help fill capacity gaps in the oil and gas sector and ancillary industries.
The students were also counselled to take interest in agriculture and associated industries, which currently lack skilled engineers and scientists needed to manufacture and operate hi-tech equipments like tractors, processors, storage tanks and other implements needed to achieve food sufficiency for the nation.
The career talk also featured lectures on the history of the oil and gas industry, gender equality and effective communication skills.
The programme began at the Ondo State Ministry of Education Resource Centre, Akure, with 44 students from 26 schools in attendance. The Permanent Secretary, Ministry of Education in the state, Pastor R.A Asaniyan declared the session open and thanked the NCDMB for helping to forge a good career path for the students.
In his remarks, Mr. Jonah Moses, an officer in the Capacity Building Division of NCDMB, explained the mandate of the Board and the functionalities of the Nigerian Oil and Gas Industry Joint Qualification System (NOGIC JQS) and how interested persons can register on the portal and access opportunities in the industry.
At the end of the sessions, questions were posed to the participating students and those who responded with the best correct answers won prizes. Miss Awotiku Olufisayo from Fiwasaye Girls Grammar school and Master Boyinbode John from Greater Tomorrow College won new laptops.
In Benin, Edo State, the programme was attended by 26 students at the Multi-purpose hall, Imaguero College. Miss Grace Doere Edduam, 16 and Miss Ezekiel Odoh Loveth, 16, both from Imaguero College won the laptops on offer.
In Asaba, Delta State, the programme took place at Christy Akako French Language Center and was attended by 42 students. Master Okoye David, 14, from Faith Academy, Asaba and Master Anouhara Valentine, 16, from St. Peter Claver’s College, won new laptops.
In her remarks at the event, the Director, Science, Vocational and Technical Education, Ministry of Basic and Secondary Education, Delta State, Mrs. Joyce Biyibi challenged the students to be focused in their studies. She also commended the Board for initiating the career talk and pleaded that it should be extended to all the local government areas in the state.
In Calabar, Cross Rivers State, the programme took place at West African People’s Institute (WAPI) and was attended by 38 students. Miss Eyo Aruku Samuel from WAPI and Master Edet Christopher Effiong from Government College, Ikot Ansa, won the prizes.
The career counselling sessions will be extended to other oil producing states in the second phase.

SNEPCo/Cameron graduate nine OJT trainees

In fulfilment of their commitments to the development of Nigerian Content in the Oil and Gas Industry, Shell Nigeria Exploration and Production Company (SNEPCo) and Cameron Flow Control Technology Nigeria Limited recently concluded on the job training (OJT) for nine young persons.

The beneficiaries were selected through the Nigerian Oil and Gas Industry Joint Qualification System (NOGIC JQS) and the trainings were conducted at the Dormanlong facility in Lagos and Cameron yard, Port Harcourt, Rivers State for one year.

The programme was on the back of Shell Bonga FPSO Induced Gas Floatation Unit and Hydrocyclone Project, a contract executed by Cameron.

The trainees received classes in entrepreneurship, business proposal presentation skills and procurement management. They also underwent training on team building, project management (PMP), offshore survival (T/BOSIET), NDT II, QA/QC, HSE, among others.

At the conclusion of the exercise, the best participant, Miss Abisola Adebola Amondi was retained and employed by Schlumberger Nigeria Limited, the parent company of Cameron.

Speaking at the graduation ceremony, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote commended SNEPCo and Cameron for their contributions to Human Capacity Development Initiatives (HCDI).

The Executive Secretary who was represented by the Manager, Human Capacity Development, NCDMB, Engr. Maurice Iwhiwhu Kelly congratulated the trainees on their successful completion of the programme, particularly for the zeal they showed during the period. He charged them to apply the skills they acquired in their future endeavors. He also tasked SNEPCo and Cameron to ensure that the trainees are employed in the industry.

The Nigerian Content Coordinator, Cameron Flow Control Technology Nigeria Limited, Mr. Donald Ibegbu underscored the company’s pride to have participated in the project. He also counselled the trainees to extend their focus beyond the oil and gas industry and consider other industries, including the agricultural sector which has immense potentials in the economy.

New projects must surpass Egina FPSO integration -NCDMB

New deep water projects in Nigeria must set new records beyond in-country integration of the Floating, Production, Storage and Offloading (FPSO) vessels, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB) Engr. Simbi Wabote has said.

He spoke at the reception of the Total Upstream Nigeria’s Egina FPSO at the SHI-MCI yard in Lagos, adding that the Board was working with operating companies and project promoters to ensure that new projects like the Bonga South West and Zabazaba deep water projects surpass the significant Nigerian Content levels attained on the Egina project.

Wabote who was represented by the General Manager, Projects and Operations Division, NCDMB, Engr. Paul Zuhumben stressed the need for close collaboration among stakeholders of the industry, particularly the Nigerian National Petroleum Corporation (NNPC), National Petroleum Investment Management Services (NAPIMS) and the Department of Petroleum Resources (DPR) to ensure that new deep water projects are developed speedily. “This is the beginning. We know the Zabazaba is coming with an FPSO. We have made it mandatory on forthcoming major projects that the Egina project will be used as a minimum. It means we are going to dream big and fabricate and integrate more modules in-country.”

Commending Total on the arrival of Egina project, the Executive Secretary maintained that the feat was attained because of the support of the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu and the Board’s strategic implementation of the Nigerian Content Act and insistence on the maximization of existing capacities and development of new capabilities.

He said, “At the conceptualization of the project we insisted that certain activities must be carried out in Nigeria. This is why you see the Egina FPSO coming from South Korea to Nigeria for integration.”

Aside the six modules that were fabricated in Nigeria, the Executive Secretary also stated that several other components were executed in-country, including 60,000 tons of fabrication, involvement of 250 Nigerian engineers on the project and use of locally made paint on the FPSO.

Speaking further, he confirmed the Board’s determination to ensure that new projects were developed within the six months cycle mandated by the Federal Government. This is necessary to keep yards like the facilities like FPSO integration yard engaged, he said.

“Setting up a facility like this would have cost between $250m to $300m. If we don’t put new projects in place, thousands of Nigerians employed at the yard will be laid off.”

In his comments, the Group General Manager, NAPIMS, Mr. Roland Ewubare stated that about 30 to 40 percent of the Egina FPSO project had involved Nigerian Content driven by the NCDMB.

He assured that NNPC and NCDMB are aligned on the strategy and vision for local content, which he described as the only way to sustain the nation’s economy.

“The rational government policy has to be additional local content. NNPC and NAPIMS will support the NCDMB fully in fulfilling that mission,” he added.

Nigeria Remains Attractive to Investment – ES NCDMB

Despite the fast changing landscape of the global oil and gas industry, “Nigeria remains attractive for investments”, asserted Engr. Simbi Wabote, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB) at the BHGE 2018 Annual Meeting in Florence, Italy.

Fielding questions at the Ministerial Panel, the Executive Secretary stated that Nigeria’s Oil and Gas Industry is still very attractive to investment, regardless of various challenges facing the global oil industry since 2014.

Earlier in his opening remarks, Mr. Lorenzo Simonelli, Chairman & CEO of Baker Hughes a GE (BHGE) had highlighted the various challenges, including market volatility, threat of emerging technologies and digitalization, energy transition to cleaner fuel sources and the demands of energy affordability, security and sustainability.
Conceding that these challenges are real and enormous, Wabote contended from that from an African perspective, “the concern for me is the emergence of artificial intelligence and robotics and how these impact on people”. He enjoined international oil companies to pay close attention to this fact as well as environmental stewardship. He charged operators and service companies to avoid mistakes of the past and conduct their businesses with transparency.

The members of the Panel agreed that “meeting the world’s energy needs isn’t going to be easy” and that the “changing market realities and constant uncertainties mean that the industry will continue to face pressures from all directions”, making the case for investing smarter ways.

The theme of the Annual Meeting is – “AM 2018 Investing Smarter Ways”.
BHGE Annual Meeting is one of the most anticipated event in the industry. It brings together global industry leaders to debate key issues and learn about latest technologies and innovative solutions to operational challenges.
This year’s Ministerial Panel featured: His Excellency, Carlo Calenda, Minister of Economic Development, Italy, Dr. Dawood Nassif, Advisor to Bahrain Oil Minister and the Executive Secretary of NCDMB. The Panel was moderated by Steve Sedegwick of CBNC.
The Annual Meeting was for January 29th & 30th. In addition to the Ministerial Panel, there were several keynote presentations and break-out technical sessions.

Total’s Egina FPSO arrives in Nigeria, set for integration

The Floating, Production, Storage and Offloading vessel for the $16bn Egina deepwater oilfield project by Total Upstream Nigeria Limited has arrived in Nigeria from South Korea.
The Egina FPSO, described as the largest ever installed in Nigeria (330-metres long), started the journey to Nigeria on October 31, 2017.
The vessel berthed on Wednesday at the newly built 500-metre FPSO integration quayside at the SHI-MCI Yard, Ladol island, Lagos, where the integration of six locally fabricated modules will take place over the next few months.
According to the oil major, Egina is the deepest offshore development carried out so far in Nigeria, with water depths over 1,500 meters and will add 200,000 barrels per day to Nigeria’s oil production.
It said the Egina FPSO had been designed for 25 years of operations and would produce 200,000 barrels of oil per day (at plateau).
The company said the Egina operations would generate significant activities for local contractors in various sectors, and continue to provide avenues for the training and development of Nigerians in various domains.

The Managing Director, Total Upstream Companies in Nigeria, Nicolas Terraz, who described Egina as the largest investment project currently ongoing in the Nigerian oil and gas sector, said it would be completed in the fourth quarter of 2018 with the initial budget of $16bn.
He said, “This is for me a collective success. Together with our partners, we are kind of making history. It is the first time we will have such a big vessel and such an activity of integration taking place in Nigeria. So, I am grateful to the partners and the authorities.

“I think Total has taken the unique position to invest significantly in Nigeria when times are difficult. Two years ago, the oil price was below $50 per barrel, and still we have continued to invest in deepwater in Nigeria.”
He said the oil major would continue to work with the Nigerian National Petroleum Corporation and its partners to grow its activities for the benefit of the country and the company.
The Egina field was discovered by TUPNI in 2003 within the Oil Mining Licence 130, some 200 kilometres south of Port Harcourt, Nigeria. The field is being developed by TUPNI in partnership with the NNPC, CNOOC, SAPETRO and Petrobras.

The Managing Director, Nigerian Ports Authority, Hadiza Usman, said the magnitude of the project presented the NPA with the opportunity to once again showcase unrelenting effort at building capacity to meet the needs of customers across board.
She said the project furthered the Federal Government’s local content policy with multiplier effects evident in employment opportunities, capacity building, technological transfer, cost saving, reduction in capital flight as well as the attraction of oil and gas hub to Nigeria for the sub-region.
“As we shall be playing host to the Egina for the next few months, the NPA is determined to deploy all its resources to supporting the project unto completion. We wish her a safe stay in the Lagos harbor and in the onward journey to the Egina oil field offshore.

According to a statement, the integration of the six locally fabricated topside modules at the SHI-MCI Yard before its final sail-away to the Egina field is a game changer as far as the execution of deep offshore oil and gas projects in the country is concerned.


Credit: punchng.com

NCDMB, NAPTIP to partner on training for trafficked victims

The Nigerian Content Development and Monitoring Board (NCDMB) will partner the National Agency for the Prohibition of Trafficking in Persons (NAPTIP) to train victims of human trafficking with the aim of rehabilitating and equipping them with skills they would need to become self-reliant.
The Executive Secretary, NCDMB, Engr. Simbi Wabote made the commitment at a recent meeting he held with the management of NAPTIP at Abuja and added that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act empowered the Board to carry out capacity building schemes in the oil and gas industry and ancillary sectors.
He underscored the Federal Government’s determination to diversify the nation’s economy and address the lack of skills and employment opportunities which make some Nigerians vulnerable to human trafficking.
The Executive Secretary explained that the Board’s training programmes are designed to provide beneficiaries with starter packs and resources that will enable them start their trade at the conclusion of the trainings.
He informed the NAPTIP delegation that the Board recently concluded the pilot phase of its Graduate Agro-Entrepreneurial Training (GAET) where it tutored 120 participants in poultry farming and provided them with starter packs, adding that the Board will be willing to provide similar trainings for the victims of human trafficking.
Wabote also advised that some of victims who are university graduates should register on the Board’s NOGICJQS portal so they can have the opportunity of being selected for trainings and employment in the oil and gas industry. “They can also benefit from our promotion of manufacturing in our oil and gas parks.”
He commended the management NAPTIP for its commitment to the fight against human trafficking, which he described as a social challenge, which sometimes defied answers. “We are going to partner with you because of the job you are doing for humanity.”
Earlier in her speech, the Director General, NAPTIP, Dame Julie Okah Donli explained that the courtesy visit was intended to solicit for partners in the fight against human trafficking. She stated that human trafficking was endemic in the Niger Delta because of the coastal nature of the region and preponderance of expatriate oil workers.
She commended the Federal Government for extending the whistle blowing policy to human trafficking, so that Nigerians can be encouraged to report cases when they see them.
The DG also listed various programmes and initiatives conceived by the agency to curb the menace and solicited the support of the NCDMB to fund some of their projects like the training and rehabilitation of victims and erection of billboards to deter perpetrators and vulnerable citizens.

N/Assembly, stakeholders begin collaboration on extension of Local Content to Construction, Power Sectors

Members of the Federal House of Representatives have begun working with stakeholders in Power, Construction and Information Communication Technology sectors towards extending the Nigerian Content Act to the three sectors of the economy. The collaboration was firmed up at the recent workshop organized by the Nigerian Content Development and Monitoring Board (NCDMB) for members of the House of Representatives Committee on Local Content, in Port Harcourt, Rivers State.

The consensus at the event was that extending the Act to those key sectors would replicate the achievements recorded in the oil and gas industry through the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

In his presentation on Operationalizing Local Content in the Construction Sector, Chief Executive Officer, Megastar Construction Company, Arch Harcourt Adukeh stated that the construction industry could be a key driver of the Federal Government’s economic diversification programme when the prevailing dominance of the industry by international companies is reversed.

Adukeh underscored the need to encourage indigenous participation in the construction sector, adding that the industry was a key enabler of ancillary services like financial services, education, retail, real estate and hospitality.

Speaking on Local Content in the power sector, Commissioner, Engineering, Performance & Monitoring, Nigerian Electricity Regulatory Commission (NERC), Prof. Frank Okafor, stressed that “no country in the world had grown its power network through the importation of all components and devices.” He canvassed for a legislation that would promote deliberate utilization of local human and material resources, goods and services in the power sector.

Chairman, House of Representatives Committee on Local Content, Honourable Emmanuel Ekon, in his address, highlighted some of the achievements recorded in the oil and gas industry through the implementation of the Nigerian Content Act.

He explained that the planned extension of the Nigerian Content Act to other sectors was in line with the Federal Government’s Executive Order on Patronage of Made in Nigeria Goods. Ekon assured that members of the committee would work with stakeholders in the various sectors to develop a robust Local Content legislation.

In his presentation, the Executive Secretary, NCDMB, Engr. Simbi Wabote commended the National Assembly for the support they provide to the Nigerian Content implementation process.

He added that the achievements in the oil and gas industry made it imperative that the Nigerian Act should be extended to other key sectors of the economy.

According to him, some of the capacities already developed in-country in the oil and gas sector could easily be deployed in other sectors.

Speaking further, Wabote informed that the Nigerian oil and gas supply chain is now able to retain $5billion from the annual $20billion spend, a marked departure from the past when almost the whole budget ended up in foreign economies. He added, “today we have two world-class pipe mills and five impressive pipe coating yards. Nigerians control and own 38 percent of marine vessels that are used in the oil and gas industry. Over 30,000 direct jobs have been created on the back of implementing the Act.”

The Executive Secretary added that the Nigerian industry had developed capacity to handle more than 60,000 tonnes of fabrication per year while all cables required in the oil and gas sector are being manufactured in-country. “We are proud of these achievements but our vision is to achieve 70 percent in-country value retention within the next 10 years and retain $14billion out of the $20billion yearly spend.”