IOCs infuse higher local content into new projects – NCDMB

New projects by international oil companies and promoters of deepwater projects are expected to deliver higher local content indicators to surpass in-country integration of Floating, Production, Storage and Offloading (FPSO) platforms,

The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote said recently in Lagos that the threshold becomes necessary, hence Total Nigeria’s Egina Deepwater project, to be integrated at the LADOL Free Trade Zone, has become the benchmark for Nigerian content on deepwater projects.

The Executive Secretary spoke shortly after inspecting facilities of Samsung Heavy Industries (SHI), the main contractor for the Engineering, Procurement, Construction and Installation (EPCI) of the FPSO scope on the Egina project, added that forthcoming projects have to break new records set by Total Nigeria Egina Deepwater project.

Wabote confirmed that in-country integration of the FPSO and fabrication of six modules of the vessel created 5000 direct jobs and 5000 indirect jobs. Increased domiciliation of future FPSO projects through the fabrication of more modules would create additional jobs, estimated to reach 30,000, he added.

He said that the board would not rest on its oars with regards to the implementation of the Nigerian Content Act, adding that “new projects must look at doing FPSO integration and more; we must add something to our achievements.”

Six modules of the Egina FPSO were fabricated in-country across some yards whereas twelves modules were welded at Samsung’s base, Geoje, South Korea. He affirmed that, “for next FPSO, more modules must be fabricated locally.”

Wabote, who expressed delight with level of investment and the utilization of local workforce, described the project as an example of possibilities, assuring that the Board will continue to work with industry stakeholders to develop new projects and domicile more work in-country.

Chief Operating Officer, SHI Nigeria, Mr. Frank Ejizu explained that the Quay side was ready to receive the FPSO, noting that the tracks have been certified.

Dwelling on the workforce, Ejizu stated that 364 Nigerian welders have been qualified and awarded international certifications, with which they can work anywhere in the world.

Earlier in the week, the Executive Secretary visited the facilities of Dover Engineering, JC International and Thompson and Grace Limited, all located at Port Harcourt, Rivers State.

He explained that his visits to oil and gas facilities across the country were aimed at assessing capacities and confirming that Nigerian companies have firm footing in their areas of operations.

Information gathered from the visits, he explained, will be used during tenders and in planning for capacity development. He also promised to enlighten international oil companies and project promoters on existing in-country capacities and ensure their utilization during projects.

Speaking at Dover Engineering, Wabote noted that experts in offshore designs, FSPO designs and detailed engineering were in high demand and engineering companies must develop strategies to retain them so their competences will not be lost.

He commended the company for forming a consortium with other engineering firms to deliver major projects, charging other service companies to emulate the model.