TOTAL Nigeria launches Suppliers’ Financing Scheme

In its quest to fulfill commitment in developing indigenous competence and grow in-country value chain through engaging financial institutions, TOTAL E&P Limited & TOTAL Upstream Nigeria Limited hosted a forum on Nigerian Contractors Development Initiative recently in Port Harcourt, Rivers State. The forum which had as its theme,

“Discipline and Excellence in Service Delivery: The Path to Nigerian Content Realization was attended by the company’s indigenous contractors and the banking community.

In a presentation at the program, the Executive Secretary, Nigerian Content Development and Monitoring Board, Engr. Ernest Nwapa commended the initiative of TOTAL Nigeria as a notable milestone which will enhance the innovations and existing funding solutions designed specially for the Nigerian oil and gas industry such as the NCDF, Shell Kobo Fund and other equity financing initiatives.

While this initiative addresses funding issues which is a critical need, Engr. Nwapa bared his mind on other critical issues crucial to sustenance and survival of the Nigerian economy, industry and people. He attributed the real game changer to be the deliberate extraction of value for Nigeria from oil and gas chain and maximizing this value from all activities from the E&P phase to downstream, stating that it is the opportunity to do more in areas of Engineering, Fabrication, Procurement, Manufacturing and Drilling amongst others that will attract the kind of capacity and funding that will make Nigerian companies globally competitive.

The Nigerian Content Chieftain enumerated the Board’s focus on creating enablers and opportunities that attract investors in the industry to include identification of Capacity Development Initiatives (CDI) from major projects, assessment & classification of Nigerian facilities to be utilized to execute Nigerian scope, and utilization of Nigerian owned assets in oil and gas operations. Other enablers are robust and aggressive training and employment programs through PETROFAC, project based  training and PETAN collaboration, stimulation of manufacturing capabilities on the strength of Pilot pipe mill program, Nigeria Oil and Gas Industrial Parks Scheme, Equipment Component Manufacturing with a view to direct capacity building interventions and host community impact programs .

Engr. Nwapa, however, frowned at the outcome of the recent assessments indicating existing and unutilized capacities which are endangered if IOCs do not make concerted efforts to place work in such facilities. He urged key stakeholders particularly operators and project promoters to take bold steps to move the industry forward.

Welcoming guests at the launch, the Managing Director/Chief Executive, TOTAL Nigeria, Mr. Guy Maurice mentioned the initiative was part of TOTAL’s commemoration of the third anniversary of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the continued utilization of Nigerian materials and human resources in the execution of projects. The company’s Chief Executive highlighted steps aimed at closing some of the identified gaps in the capacity/capability of Nigerian companies, through various in-country capacity building initiatives such as the Nigerian Contractors Development Initiative in collaboration with some select banks.

Mr. Maurice regretted the challenges associated with accessibility of funds required for the execution of projects and contracts which persistently limit the capacity of local vendors and suppliers in the oil and gas industry. In a bid to alleviate the abnormality, the TOTAL Boss dropped the hint that the initiative is geared towards bridging the gap between local vendors/suppliers and the financial community.

The initiative, he further stated, is valued at $7.5Billion and the fund has been made available by the participating Nigerian banks, committed to the development of Nigerian Content in the industry. He hoped that the initiative will go a long way in addressing the inability of Nigerian service companies to access funds, necessary for them to be competitive and the eventual actualization of localization of procurement of goods and services.

The event which featured one of Nigeria’s most celebrated inspirational speaker, Mr. Fela Durotoye was rounded off with a launch of the TOTAL Suppliers’ Financing Scheme and the signing of MOUs by the participating banks and the company.