Shell Nigerian Content Exhibition unlocks Indigenous Capacity efforts

In furtherance of its commitment to increase the participation of Nigerian companies and individuals in its supply chain and operations to ensure that as many Nigerians as possible benefit from its operations in tandem with the objectives of its Nigerian Content Development Policy and the NOGICD Act, Shell Petroleum Development Company (SPDC) of Nigeria Limited recently held the 3rdedition of the Shell Nigerian Content Development Exhibition at its Industrial Area in Port Harcourt, Rivers State .

In his remarks, the Executive Secretary of the Nigerian Content Development and Monitoring Board, Engr. Ernest Nwapa, who spoke through the General Manager, Downstream, Engr. Ginah O. Ginah disclosed that the provisions of the NOGICD Act guaranteed that indigenous manufacturers have first consideration in oil and gas contracts which meant Nigerians could invest in equipment components manufacturing and be assured the results will be realizable.

Engr. Nwapa asserted a steady progress in the Nigerian Content journey as the Board is perfecting the major areas of Engineering, Fabrication, Manufacturing, Marine and Shipping services, Legal and Financial services and all services across board including Education and Training, Research and Development.

The Executive Secretary maintained that many Nigerian companies and institutions are asked to do what they have never done before and things they did not envisage they will be doing in 2013 which is making a lot of difference in the industry and in Nigeria. He regretted the short term difficulties with many challenges which stakeholders were not yet prepared for but expressed the belief that every operator will come to benefit from the Nigerian Content Board.

The Chief Executive of the Board commended Shell and participating companies at the Exhibition while urging them to domiciliate OEM plants in Nigeria in line with the Board’s implementation strategy on Original Equipment Component Manufacturing (OECM). He indicated the setting up of Industrial Parks which the Board will only provide the basic infrastructure while investors are expected to build manufacturing facilities that will support the work of companies like Shell while lauding Shell companies in Nigeria and service companies for working together in building necessary capacity to employ youths and provide platforms and shop floors where students and young people can actually learn vocations, be professional and work for a living.

Welcoming participants to the two day event, the Country Chair and Managing Director, Shell Petroleum Development Company, Mr. Mutiu Sunmonu said SPDC had in August 2013 received approval from the National Petroleum Investment Management Services, (NAPIMS) for longer term contracts to enable six Original Equipment Manufacturers and their Nigerian partners develop and operate facilities in-country. Mr. Sunmonu who was represented by the General Manager, Sustainable Development and Community Relations, Mr. Nedo Osayande hinted, the aim of the project is to domesticate the goods and services required in Nigeria’s oil and gas industry to make it globally competitive.

The Country Chair, however, expressed that the key objective of the annual exhibition is to establish a viable and effective platform for collaboration between local suppliers and Shell staff which will help create awareness of locally produced oil and gas materials, equipment, goods and services obtainable in Nigeria. He urged Nigerian companies to invest in the development of world class processes and structures to match those available anywhere in the world in terms of quality standard and prices, an initiative that brought about collaboration between SPDC and PETAN in July 2013 on strategies for evolving sustainable business models for indigenous Nigerian companies.

Speaking earlier, the General Manager, Nigerian Content Development, SPDC, Mr. Igo Weli stressed that it would need the support of the Federal Government to fully domesticate the production of oil and gas equipment in Nigeria as it would take collaboration and all stakeholders working together to achieve these objectives looking at an optimum way of delivering these in-country components with clear time lines.

Participants at the event included companies involved in manufacturing, fabrication and construction, raw material extraction, assembly and maintenance, well engineering, production operations, Health, Safety and Environmental (HSE) and Information Communication Technology (ICT). This year’s event focused on manufacturing of materials, spare parts and components.