The Executive Secretary, Nigerian Content Development and Monitoring Board, (NCDMB) Mr. Denzil Kentebe on Thursday led the Nigerian content development General Managers of the international producing companies and other stakeholders of the oil and gas industry to tour the facilities of the Oil and Gas Services Centre, Oil and Gas Free Zone, Onne, Rivers State, with a promise to support companies operating in the zone to maximize their potentialities and address some of their challenges.
The tour was coordinated by Intels Nigeria Limited, a concessionaire in the zone whose integrated logistics services are dedicated to the oil and gas industry. The company showcased its investments in berthing facilities, ports operations equipment, offices and accommodation facilities etc. The other firms visited included Total Premier Services, Vallourec Oil and Gas, Titan Tubular, Tenaris and Pipe Coaters Nigeria Limited.
Other companies visited included Cameron Valves and Measurements, West Atlantic Shipyard, OPMC, Remm Oil Services, Oando Rigs One Subsea/Cameron Offshore and GE Subsea Facility. The team also visited FMC Technologies, West African Ventures yard and Adamac.
The tour came on the heels of a similar visit by the delegates of the recently held Practical Nigerian Content Conference to the facilities at the zone.
Speaking during the tour, Kentebe explained that the purpose of the visit was to get the industry to appreciate the capacities of companies operating in the oil and gas service centre and Free Trade Zone, noting that the Board was insisting on the utilization of locally manufactured inputs by the oil and gas industry and many of such activities were carried out in the zone.
He expressed delight that many of the companies were engaged in value addition activities and manufacturing of components, which according to him hold the key to real Nigerian content growth and employment creation. He encouraged companies operating in the zone to approach the Board if they experienced challenges, noting that the NCDMB was willing to support any company seeking to domicile its operations in the country.
On complaints from the operators of the West Atlantic Shipyard that the vessels they manufacture in the Zone were often taxed exorbitantly when they are moved out of the vicinity, the Executive Secretary promised that the Board will engage relevant agencies of government to ensure that applicable tax policies do not negate the essence of establishing the zone. He charged the company to ensure that it restarts the manufacture of vessels aside from just carrying out dry docking of vessels. He noted that the Board will begin to give first consideration to locally built vessels in tenders from 2016.
Explaining the company operations to the Executive Secretary after they conducted a tour of their rigs, the Managing Director of Oando Energy Resources, Mr. Bamidele Badejo explained that the company’s three rigs-OES Integrity, OES Respect and OES Teamwork were moored at the Free Trade Zone as they were out of work. He explained that the company invested $450m in the acquisition of four rigs in furtherance of the Nigerian Content Act and employed 600 persons when three of the rigs were working. He regretted that the staff strength had been cut to 200 since the slide of oil prices and downturn in operations. He pleaded with the Board to help the company secure business so they can recall their staff and make their investment worthwhile.
When the team visited OneSubsea, the officials explained that the company was assembling Christmas Trees for ExxonMobil’s Erha North project and 70 per cent of the project team are Nigerians. OneSubsea Offshore Systems is a leading provider of flow equipment products, systems and services to oil and gas and process industries.
Officials of General Electric also told the Executive Secretary and his entourage that they repair and maintain Christmas Trees for the Shell Bonga project and other deep water projects. He added that the Christmas Trees were dismantled and assembled back in their facility and returned to the production platforms offshore.
In their presentation, officials of West African Ventures noted that the certifications offered by the Maritime Academy of Nigeria, Oron to local trained seafarers were not accepted by the oil and gas industry and offered to upscale the capacity of their graduates to enable them acquire international certifications and skills they need to secure work.
Speaking after conducting the entourage through the oil and gas services Centre in the Onne oil and gas Free Zone, the Head, Public Relations and Nigerian Content, Intels Nigeria Limited, Mr. Isidore Sambol explained that his organization was committed to the realization of Nigerian Content in line with the policy thrust of the Federal Government for the oil and gas industry.
He added that the plans for Onne Phase 4B project by Deep Offshore Services limited would when completed double the present capacity of the services center and create more jobs for Nigerians. The Phase 4b project is on-going with dredging and reclamation works underway for the construction of an additional 2,000sqm jetty with a 12meter draft at low tide. Others include 600 Ha of industrial area, an inner channel and turn basin.
These projects are aimed at investors on fabrication, manufacturing, integrations services, spool base and dockyard. Mr. Sambol pointed out that the oil and gas free zone, Onne is only 40 per cent utilized and called on investors to take advantage of the Federal Government incentives for operating in the Zone.
