NCDMB, NLNG sign Train 7 Nigerian Content Plan

…Project’s value network is $12bn
…to create 10,000 jobs, legacy facility

The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigeria LNG Limited (NLNG) on Friday signed the Nigerian Content Plan (NCP) for the NLNG Train 7 project, taking a big step towards kick starting the huge gas project that would create a flurry of activities in the oil and gas sector and contribute immensely to the nation’s economy.

The Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote and the Managing Director of NLNG, Engr. Tony Attah signed the NCP in Abuja at an event witnessed by senior personnel of the Nigerian National Petroleum Corporation (NNPC), Shell, Total and ENI – shareholders of the NLNG.

The Train 7 project is expected to expand NLNG’s production capacity by 35 per cent from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA. At peak construction, the Train 7 project is projected to provide direct, indirect and induced employment for over 10,000 persons.

The Executive Secretary emphasised at the signing ceremony that Train 7, like other forthcoming major projects in the oil and gas sector must leave a legacy facility, just like Total’s Egina deepwater, which catalyzed the development of an FPSO integration facility in Lagos.

He explained that the expected job explosion from Train 7 is banked on the Nigerian Content Plan, which provides for 100 percent engineering of all non-cryogenic areas in-country. The total in-country engineering man hours is set at 55 percent, which exceeds the minimum level stipulated in the NOGICD Act, in line with the Board’s resolve to push beyond the boundary of limitations, he added.

Wabote revealed that the Train-7 scope will deliver 100 percent in-country fabrication of the Condensate Stabilization Unit, pipe-racks, flare system, and non-cryogenic vessels. Site civil works on roads, piling, jetties and will also keep local businesses occupied.
He added that “it will also provide great opportunities for utilization of local goods and services in addition to enhancing and developing new capacities and capabilities for the local supply chain. There will be 100 percent local procurement of all LV cables and HV cables, all non-cryogenic valves, protective coatings, and all sacrifice anodes. 70 percent of all non-cryogenic pumps and control valves will be assembled in-country.”

Other spin-off opportunities would include logistics, equipment leasing, insurance, hotels, office supplies, aviation and haulage.
The Executive Secretary pointed out that the increased number of NLNG Trains would also provide huge business opportunities for local businesses to build capabilities in the maintenance of LNG plants, especially in the area of cryogenics. The project would also catalyze other upstream gas supply projects required to keep the LNG train busy and make stranded gas fields in the shallow and deep offshore in the area economical.

In his comments, the Managing Director of NLNG confirmed that the full value network of the Train 7 project was about $12bn, including the net cost of the project, estimated in the region of $4bn to $5 billion and a similar additional spend at its operational base in Bonny, Rivers State. “It is also about the upstream development which is the real gas that will come to us. That also is a huge investment of $5 to $6 billion. So, potentially, the full value network is almost $12 billion.”
Engr. Tony Attah underscored that the Nigerian Content Plan for Train 7 contained clear and robust Local Content provisions that are significantly higher than the previous NLNG projects.
“NCDMB and NLNG are fully aligned to collaborate during the operationalization of the plan. This synergy will ensure that value added opportunities for Nigeria are indeed maximized and the Train 7 project is delivered to meet international standards of quality and safety.”
He also stated that NLNG shareholders are primed to take the Final Investment Decision (FID) for the project before the end of Quarter 4 2019.
The MD further highlighted that the expected increase in the production capacity of LNG “will reinforce the company’s comparative and competitive advantage in the global LNG market while also increasing the country’s revenue and foreign investment profile. This is in addition to moving the nation’s economy from being oil-based to becoming a gas-based economy to be reckoned with globally. We are here to enable gas. Nigeria has ridden on the back of oil for more than 50 years, it is now time to fly on the wings of gas.”

NSE confers fellowship on Wabote, Ikuru

The Nigerian Society of Engineers (NSE) on Friday conferred the rank of fellowship on Engr. Simbi Kesiye Wabote, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB) for his outstanding contributions to the engineering profession and Local Content Development in the oil and gas industry.

Wabote was decorated among 38 other eminent engineers, including the General Manager Capacity Building Division of the NCDMB, Dr. Ama Ikuru, at the 10th fellowship conferment lecture and ceremony held in Abuja on Friday.

The new fellows were decorated by the President of the NSE, Engr. Adekunle Mokuolu and the Chairman of the Board Fellows, Engr. Felix Atume.
Thereafter, Engr. Wabote was nominated to deliver the vote of thanks on behalf of the conferees and he thanked the NSE Council for bestowing the honour of fellowship on them. He noted that all the nominees were senior practitioners of the profession, who had made impressive contributions to the growth of engineering.
He also promised that new fellows would continue to fly the flag of the society and uphold the responsibilities expected of them.
Some staff of the NCDMB, friends and associates of Engr. Wabote and Dr. Ikuru were at the event to celebrate with them.

NCDMB, NLNG set to sign $1bn Train 7 Project Nigerian Content Plan

The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigeria LNG Limited (NLNG) will on Friday in Abuja sign the Nigerian Content Plan (NCP) for NLNG’s Train 7 project, estimated to cost $1bn.

The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote and the Managing Director of NLNG, Engr. Tony Attah met at the Board’s headquarters in Yenagoa, Bayelsa State on Thursday and finalised arrangements for the signing ceremony.

The Train 7 project is expected to ramp up NLNG’s production capacity by 35 per cent from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.

The Nigerian Content Plan sets out the work scopes to be executed in country in each project, based on the provisions of the Nigerian Content Act and existing capacities. The document would form the operating guide for project execution and monitoring.
It would also aid the maximization of Nigerian content deliverables in the project, by giving first consideration to indigenous goods, services and human resources, as well as opportunities to Nigerian companies.

Under the Nigerian Content Plan for Train 7, the NCDMB introduced a provision that would ensure that a lead EPC bidder that has built capacity in-country is not disadvantaged with regards to cost.

The overall scope of work on the Train 7 project includes in country and out of country work. They are “design, engineering, procurement, expediting, transportation, management, construction, installation, pre-commissioning and start up support and acceptance testing of an expansion to the existing NLNG facility. “

The timely finalisation of the NCP is a key outcome of the Service Level Agreement (SLA) the Board signed with the NLNG in May 2017. The SLA committed the two organisations to timely approvals and compliance with the Nigerian Content.
The scheduled signing of the NCP is expected to enable timeous execution of other activities that would culminate to the planned issuing of tenders in Quarter 3 of 2019.

Kachikwu to speak at oil industry opportunity Fair

The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu would lead discussions on the available and emerging investment opportunities in the Nigerian Oil and Gas Industry, at the forthcoming Nigerian Oil and Gas Opportunity Fair (NOGOF).

The Minster’s participation was confirmed on Friday by the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote. The event is scheduled to hold on April 4-5 2019, at the new 17 storey headquarters building of the Nigerian Content Development and Monitoring Board (NCDMB) in Yenagoa, Bayelsa State

Wabote also disclosed that the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru and chief executives of the international operating companies are  also expected at the event.

According to him, NOGOF would serve as a forum to share information about available opportunities to investors who had established fabrication yards, engineering houses, pipe mills, pipe coating yards, cable manufacturing and other facilities since the implementation of the Nigerian Content Act in 2010.

He added that “it is important for the investors and other stakeholders to have a line of sight to projects opportunities in the funnel so they can position themselves for the desired growth.’’

He explained that investments and service providers were stifled in the past due to lack of information on projects in the short, medium and long term. He added that “most often than not, by the time the opportunities come on the table the service providers will not be ready in terms of capacities to deliver the goods.

‘’The NOGOF is a platform we want to use to share the opportunities that are warehoused by the various international operating companies and indigenous operators. This would cover upstream, midstream and downstream business opportunities. It will address access to market, so that companies will know and understand what is coming and prepare themselves.

The maiden edition of NOGOF was held in Uyo, Akwa Ibom State in 2017 and was attended by over 1,200 delegates, 33 exhibitors, and witnessed presentation of industry opportunities covering engineering designs, pipeline construction, facility upgrades, and projects in the various sectors of the industry.

This theme of this year’s edition is “Maximizing Investments into the Nigerian Oil and Gas Industry for the benefit of the Nigerian People.”

Nigerian Gas Association commends NCDMB, seeks collaboration

The new Executive Council of the Nigerian Gas Association (NGA) has commended the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote for the phenomenal strides the Board is making in capacity building, vendor development and enlightenment of stakeholders on the Nigerian Content Act.

President of the Association, Mrs. Audrey Joe-Ezigbo made the remarks when she led the current NGA Council on a courtesy visit to the Board’s Abuja liaison office on Thursday.

She expressed a strong desire for the Board to partner with the NGA to strengthen their advocacy for effective gas utilization and promotion of gas commercialization programme.

She said that the essence of the visit was to intimate the Board about the strategic direction of the current leadership of NGA and their readiness to move away from merely complaining about the challenges of the industry to public policy and legislation with a view to promoting value addition through the gas subsector.

She informed the Board that one of the goals of the Council is to build a resource centre where reliable and vital data on gas issues can be obtained by investors and other stakeholders. She sought for collaboration of the Board towards actualizing the goal.

She also noted that NGA is interested in capacity building and in-country value creation, noting that gas utilization is the fastest path to Nigeria’s development and transformation.

In his response, the Executive Secretary appreciated the Council for the visit and described the NGA as a critical stakeholder in the oil and gas industry that cannot be ignored. He commended the gender mix in the leadership of the association as well as the lofty achievement of having one of its members belonging to the leadership of International Gas Association, Engr. Emeka Ene, being the first Nigerian to attain such height.

Wabote assured the NGA Council of the Board’s willingness to support the association to fulfill their objectives considering the criticality of gas to Nigeria’s economic growth and development.

On the plan to establish a resource centre, he promised to support the association provided they are willing to set up it in the new NCDMB 17 storey headquarters in Yenagoa, Bayelsa State, which has available accommodation.

The Executive Secretary emphasized that such centre will be highly valued by the industry because there is currently little or no reliable data on gas in the country. He encouraged the association to remain focused in their advocacy for better policy and legislative framework on gas development and utilization in Nigeria. He assured the NGA that the Nigerian Content Intervention Fund (NCIF) is available to support every credible investment in oil and gas value chain. He further informed the council to write to the Board to be incorporated into the Nigerian Content Consultative Forum (NCCF) as a sub –committee, so that the association can utilize the platform to advise the Board on vital areas of intervention to deepen Nigerian Content performance and in country value creation.

He also charged the council to enlighten their members on how to make the required remittance on the Nigerian Content Development Fund (NCDF).

In his remarks, the immediate past president of NGA Engr. Dada Thomas commended the Board for the great stride it had recorded in the implementation of the Act and challenged the Board to expand the reach of local content to other critical sectors of the economy.

Executive Secretary NCDMB inaugurates Project 100 Project Management Office

The Executive Secretary, Nigerian Content Development and Monitoring Board, (NCDMB) Engr. Simbi Wabote on Wednesday inaugurated the Project Management Office for Project 100, an initiative launched by the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu on January 31, 2019.

Members of the PMO were drawn from the Ministry of Petroleum Resources, the Nigerian National Petroleum Corporation (NNPC) and Petroleum Technology Development Fund (PTDF) and they would function within the NCDMB. The PMO would be supported by KPMG, an international consultancy that has been working on the project.

Speaking at the ceremony at the NCDMB Abuja liaison, the Executive Secretary said the members were carefully selected in view of the relevance of their functions in the delivery of the Supplier Development Programs that will drive the growth of Nigerian service companies.

He listed five key areas the PMO will focus on to include managing the ongoing process and refinement of Project 100 strategy, managing the selection, acceleration and graduation process of Project 100 beneficiaries and managing the implementation of initiatives for the various target beneficiaries. Other assignments include developing fact based documentation of performance of Project 100 interventions and impact on local content and managing wide relationships and partnerships with public and private sector entities that support the delivery of Project 100 initiatives and interventions.

He charged members of the PMO to work assiduously to create a pool of high performing large scale enterprises that will impact positively on job creation, retention of industry spend within the Nigerian economy, development of skilled manpower, robust policies, and access to credible data.

Wabote also directed members of the PMO to identify the various areas of interest of the beneficiaries and provide them opportunities with the collaboration of the National Petroleum Investment Management Services (NAPIMS). He added that “while we would engage in public tendering, we have to specially look for opportunities. We also need to engage Nigeria Liquefied Natural Gas (NLNG) and other organizations that carry out procurement outside the Nigerian Petroleum Exchange (NIPEX) System. Project 100 companies must be included in the bidders list of such organizations.”

 

Making a presentation on the operating guidelines of the PMO, the General Manager, Research Strategy and Development, NCDMB, Mr. Abdulmalik Halilu explained that the concept of Project 100 was to identify and grow indigenous companies from small players to large enterprises. He said the project hoped to support such companies to grow their annual turnover from about N100m to over N500m, increase job creation and their local content level, train more manpower and acquire cutting edge technology.

 

He listed factors that determined the selection of the beneficiaries to include their impact in the oil and gas sector, status of their registration on the Nigerian Oil and Gas Industry Joint Qualification System (NOGICJQS), compliance with Nigerian Content and their level of regulatory compliance. Other considerations he said, included their ownership status, compelling business plans submitted by the companies and their baseline commitments.

Halilu stated that key performance indicators for Project 100 would include “percent increase in business turnover, percentage increase in employment, percentage increase in local content level from contracts executed and percentage increase in personnel training and certification.”

Support that would be provided to the beneficiaries are Non-Financial interventions and Financial Linkages. The Non-Financial interventions include policy interventions, access to market, capacity building, research development and business insight. The financial linkages include letters of recommendation to access intervention funds and highlighting collaborative opportunities between beneficiaries to enable them take on larger projects.

According to the project execution timeline, the Project Management Office would begin in March 2019 to engage beneficiaries to revalidate expectations and thereafter develop execution plans for targeted interventions. From June 2019 to December 2020, the PMO would begin to implement targeted interventions.

FG launches ‘Project 100’ to support local oil, gas service firms

The Ministry of Petroleum Resources in conjunction with the Nigerian Content Development and Monitoring Board (NCDMB) on Thursday launched Project100 to provide institutional and financial support to 100 Indigenous oil and gas service companies.

The project targets indigenous companies offering seismic, marine, engineering and drilling services and will provide financial and non-financial as well as technical support and access to market for the beneficiary companies.

Minister of State for Petroleum Resources Dr. Ibe Kachikwu who performed the official launch said he initiated the Project 100 as an oil and gas industry intervention to identify, recognize and nurture wholly owned indigenous Nigerian oil and gas service companies into large scale players that will create high impact in the economy.

He said the process of selecting the beneficiary companies was very clean and transparent.

The NCDMB which is the lead agency tasked to implement the project said world renowned consultant KPMG conducted the selection process.

Executive Secretary of the NCDMB Engr. Simbi Wabote said a lot of evaluation criteria were used to trim the number of companies who applied adding that 60 companies were chosen among thousands of service companies who applied.

Some of the beneficiary companies include Anzor Nigeria Ltd, B2 Oil and Gas Project Ltd, Energeria Ltd, Gemstone Energy Services Ltd, Jite Projekts Ltd and Mafuta Energy Services Ltd.

The NCDMB and the Bank of Industry (BOI) had in 2017 launched a $200 million Intervention Fund for Nigerian companies involved in manufacturing in the oil and gas industry.

Wabote said, however, the Board was finalizing another financing model. “Within the next couple of months we will launch another financing scheme perhaps without all the bottlenecks that we see today with the BOI and these selected companies will be our focus areas and beneficiaries,” he said.

Buhari, Wabote advocate African collaboration on Energy Infrastructure, Local Content

President Mohammed Buhari and the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote on Monday canvassed for effective collaboration among African nations to enable them jointly develop mega energy infrastructure like refineries, gas turbines and pipelines and create employment opportunities for their citizenry.

The President spoke in Abuja when he declared open the 2019 Nigeria International Petroleum Summit, with the theme “Africa on the Global Stage: International Collaboration, Opportunities and the Future.”

Represented by the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, Buhari commended African countries for working collaboratively under the aegis of the African Petroleum Producers Organization (APPO), noting that the relationship among the producing nations would enable the movement of specialised skill sets and investors across member states.

He remarked that the role of the African Energy Investment Corporation, a body under APPO, has been expanded to mobilize about $2bn needed to finance identified joint infrastructure.

According to him, “the time for Africa has come. The realities have dawned on us because very soon, unless we protect our border posts, begin to look more at financing that we can find locally to develop the key infrastructure we need in this sector, we would have lost a huge opportunity.”

He harped that it was high time African countries stopped operating in silos and building individual facilities with their limited resources. He added “If we cross the Rubicon and extend hands of infrastructural relationships across Africa, we can build joint pipelines, plants and refineries. We need to protect the African market. That way we would have taken a huge step not only to develop Africa, but also the stabilization of independent African countries.”

He noted that African petroleum producers faced several challenges, which included the immense pressure being put on crude oil price by shale gas, the volatility of crude oil prices, investment limitations and the influence of President Donald Trump of the United States on the global crude oil price.

In his remarks, the Executive Secretary NCDMB challenged African oil producing countries to focus intently on creating jobs for their citizenry from industry projects through effective implementation of local content policies. He stressed that only the creation of jobs would halt the illegal and deadly migration of African youths to European nations. He warned that “If we continue to move critical activities of our oil and gas industry and the accompanying jobs outside the country, then our youths will continue to move out to Europe in search of greener pastures.”

FDI needed to grow Local Content-NCDMB

Foreign Direct Investments (FDI) and some foreigners are needed for Local Content to thrive in the Nigerian oil and gas industry and allied sectors, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has said.

The Executive Secretary spoke in Abuja on Thursday at a workshop organised by the Nigerian Electricity Regulatory Commission (NERC) on the Nigerian Content benchmark for schedules of products and services and local products exhibition for the Nigerian Electricity Supply Industry.

Wabote was represented by the Director Planning, Research & Statistics in the NCDMB, Mr. Daziba Patrick Obah and he explained that Nigeria is still lacking in some capabilities, hence the need for FDI to support Local Content growth.

He emphasized that Local Content philosophy and its application in Nigeria has no correlation with Nigerianisation or Nationalization of foreign firms.  “It is neither a Protectionism force nor anti-foreigners in its inclination, and must not be applied interchangeably with Corporate Social Responsibility,” he added.

Obah stressed that “Nigerian Content is a very serious stakeholder business initiative, designed to promote domestication and domiciliation of value adding activities in-country through manufacturing, procurement, research & development and employment & training.”

Shedding light on Board’s monitoring and enforcement of the provisions of the Nigerian Content Act, he disclosed that “our Monitoring and Evaluation Framework adopts a two pronged approach namely, Compliance & Performance Monitoring and Intervention Monitoring.”

He explained that in cases where cases of non-compliance or other infractions are established against some companies, the Board adopts measures which include litigation, naming and shaming, blacklisting from future tenders, remediation measures and others.

Wabote, Okoroafor canvass innovation, collaboration among O&G players

The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB) Engr. Simbi Wabote and the President, Petroleum Technology Association of Nigeria (PETAN), Engr. Bank-Anthony Okoroafor have identified innovation and collaboration among industry stakeholders as key ingredients that would sustain and enable growth of the oil and gas sector.

Wabote made this assertion while delivering the keynote address at the 3rd West African International Petroleum Exhibition and Conference (WAIPEC) organized by Petroleum Technology Association of Nigeria (PETAN) in Lagos on Wednesday.
Speaking on the theme “Sustaining oil and gas production through innovation and collaboration”, Wabote stated that innovation enabled the oil sector get to frontiers that were considered impossible in the past. He stressed that a business without innovation might not explore opportunities to collaborate with other businesses for sustainable production and project execution capability.
Stressing the need for collaboration, the NCDMB boss reiterated that the Africa energy map presents huge opportunities for the region but the expected collaboration amongst businesses has been slow so far.
According to him “the hydrocarbon discoveries in the West African region present opportunities for innovation and collaboration across borders to overcome barriers. ECOWAS must remain at the forefront of pulling down these barriers rapidly and double the current $300billion annual trade level across the region on the back of oil and gas discoveries.”
Wabote highlighted the different collaborative approaches the Board has employed in building local capacities in-country and increasing the level of compliance to the NOGICD Act 2010. He said, “We are in collaboration with NIMASA on vessel categorisation and we also have a standing joint committee with the Nigerian Customs Service to deal with those who think they can smuggle vessels into the country through the back door.”
He added that in order to resolve infractions and establish pathway to restitution, the Board engaged the Attorney-General of the Federation and the Chairman of the Economic and Financial Crimes Commission (EFCC) respectively, to collaborate on how to address recalcitrant offenders against the NOGICD Act.
In his remarks, Okoroafor underscored the need for strategic collaboration and knowledge sharing between Nigeria and new entrants in the oil and gas market in the region. He stated that players in the industry needed to brainstorm on how to adopt artificial intelligence in the operations of the sector.
Okoroafor said “the need for collaboration cannot be overemphasised especially in Sub-Saharan Africa. The oil and gas in Nigeria is over 60 years and a lot of experiences have been gathered over the years. The new entrants into the market do not need to go through the route that Nigeria went and repeat the same mistake. We need to strategically collaborate and share experiences.”