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Tag: fabrication

  • ‘How we championed local content in fabrication’

    The Managing Director, Lagos Deep Offshore Logistics Base (LADOL), Dr. Amy Jadesimi, has said with the fabrication and integration of modules of the Total’s Egina field’s floating production, storage and offloading vessel (FPSO), at the LADOL yard, the company has shown it is committed to local content development.

    Jadesimi, in a statement, said  with the integration of the FPSO currently on its way to the operational base, Egina field, located in oil mining lease (OML 130), which is about 150km offshore the Niger Delta, LADOL has championed local content in fabrication.

    The LADOL chief said for the vessel to berth at the LADOL-SHI-MCI yard for about seven months and had the integrations successfully before sailing away to the field, it was a milestone. She said Egina FPSO made history as the first FPSO unit to berth at an integration quay in Africa for the installation of six topside modules that were fabricated in Nigeria, adding that the jobs were carried out on the vessel without injury.

    Jadesimi said Egina FPSO was the largest FPSO ever installed in the country and LADOL would build on that success to make Nigeria the hub of FPSO fabrication and integration in West Africa.

    The Egina field was discovered by Total Upstream Nigeria Limited (TUPNI) in 2003 within (OML 130), some 200 kilometres south of Port Harcourt, Nigeria. The field is being developed by TUPNI in partnership with NNPC, CNOOC, SAPETRO and PETROBRAS.

    Egina is the deepest offshore development carried out so far in Nigeria, within water depths of over 1,500 metres. The Egina FPSO has been designed for 25 years of operations and will add 200,000 barrels of oil per day (at plateau) to Nigeria’s oil production (approximately 10 per cent of the country’s total oil production).

    Jadesimi said: “The arrival of Egina FPSO marked a historic milestone for our facility and for industrialisation in Nigeria. The FPSO fabrication and integration at LADOL is a major achievement for local content and a step towards creating thousands of direct and indirect new jobs in the country.

    “Also the Nigerian Ports Authority (NPA) Managing Director, Mrs. Hadiza Bala Usman, observed that the successful berthing of the vessel at the facility shows the operational efficiency and very robust synergy between the NPA and LADOL.

    “With the task of integrating the topsides of the FPSO, LADOL made a huge success of the opportunity. In all, six modules fabricated in-country were integrated, with about 21400 pre-commissioning tasks performed.

    “LADOL completed the work on time and on budget, demonstrating to the world that the most complex and challenging industrial projects in the world can be completed in Nigeria. The next step is for LADOL to work towards ensuring that the 50,000 new jobs, which can be created due to the LADOL facilities, are created.”

    In-country integration of the FPSO and fabrication of six modules of the vessel created 5,000 direct jobs and 5,000 indirect jobs. Increased domiciliation of future FPSO projects through the fabrication of more modules is expected to create additional jobs, estimated to reach 30,000.

    The importance of the Egina project to the economy cannot be over-emphasised. It is expected to add 200,000 barrels to Nigeria’s daily crude oil production. Egina will also contribute to the Federal Government’s commitment to address production decline and shore up national revenue.

    “The Egina FPSO, having undergone a successful integration at the LADOL yard, left the facility at 05:00am on August 26, for onward journey to the Egina field offshore Nigeria, where it will produce and add to Nigeria’s daily crude oil output.

    “We thank His Excellency, President Buhari and his administration for doing away with the monopoly and putting in place an ease of business regimen that has ensured the successful execution and completion of this project.

    “At 0500 am NPA tugs masterfully took the largest FPSO in the world out of LADOL Free Zone in Lagos Harbour to the open sea. Thank you to NPA and NEPZA for working together with us and taking giant strides forward, making Nigeria the West African maritime and industrial hub.”

     

     

  • ‘Nigeria to undertake over 50% fabrication, integration in IOCs’ projects’

    About 50 per cent of the fabrication and integration of topsides of the floating, production, storage and offloading (FPSO) vessels of Nigerian Agip Exploration Limited (NAE)’s and Shell Nigeria Exploration and Production Company (SNEPCO)’s Zabazaba deepwater project and the Bonga South West Aparo (BSWA) deepwater project will be done by Nigerians. The Nigerian Content Development and Monitoring Board (NCDMB), has confirmed.

    The Board noted that with the development, the oil and gas sector is set to make a huge impact on the economy as the two multinational companies involved will substantially use local personnel and materials.

    The projects are the Zabazaba deepwater project being executed by NAE, in partnership with SNEPCO, on Oil Prospecting Licence (OPL) 245, and the Bonga South West Aparo (BSWA) deepwater project being developed by SNEPCO.

    It noted that major contractors bidding for Zabazaba submitted competitive costs and concrete plans to fabricate and integrate over 50 per cent of the FPSO topsides in-country. The technical and commercial evaluations of bids for the Zabazaba main packages have been finalised by NCDMB and NAE and the submissions met the aspiration of maximizing local content at the most competitive cost. The packages included the FPSO units, subsea, installation and rigs.

    NCDMB Executive Secretary, Simbi Wabote, confirmed the positive development, expressing optimism that the execution of Zabazaba would grow Nigerian content and impact the economy, much more than previous deepwater projects. He said the Board carried out detailed scoping of the project to ensure that the targets exceed the accomplishments achieved on Total’s Egina project.

    “For Egina, six FPSO topside modules were fabricated in-country across some yards and will be integrated when the FPSO arrives at the SHI-MCI yard in Lagos later this year. This will be the first time in the history of Nigeria,”he said.

    Wabote also said the approvals and evaluations for Zabazaba were completed in 14 months, setting a cheering record in the industry as against the 24/36 months project cycle time that bedeviled the sector for many years and contributed to the high cost of projects.

    “It has taken just 14 months since NAE approached the Board with their Nigerian Content Plan. NAE and NCDMB worked closely and went through the standard contracting process, including invitation to tender, clarifications, technical and commercial bid evaluations and facility audits. We completed the process and issued our final report on August 30.

    “This is confirmation that NCDMB does not delay projects and we can achieve the six-month contract cycle target if operators comply with set directives,” he added.

    Similarly, (SNEPCO) is set to issue bid documents this September for the supply of the FPSO vessel for the Bonga South West Aparo (BSWA) deepwater project. The bid documents will set out the company’s plans for in-country fabrication of half of the topsides of the FPSO and their integration.

    These indications emerged in the September edition of Upstream, an international medium on the oil and gas industry. The report was titled: “Shell set to launch FPSO bid battle.”

    SPDC’s plan was informed by “the strict local content demands imposed by the Abuja-based government. All oversea bidders are expected to partner with Nigerian companies,” it added.

    Shell’s contracting strategy was described as complex and demanding, according to a source, saying that “they have some terms and conditions that are quite different from traditional T&Cs. These are thought to focus on local content and are all about asking the yards to take more risks”.

    Wabote said earlier in the year that more modules would be fabricated locally for future deepwater projects. He said the Board would not rest on its oars with regards to the implementation of the Nigerian Content Act and “new projects must look at doing FPSO integration and more.” Increased domiciliation of future FPSO projects is estimated to create jobs in the economy, estimated to reach 30,000.

  • Fed Govt to train 120 on fabrication of agro-machines

    The Federal Government is planning to train 120 persons in the country on the fabrication of agro-processing machines, it has been  learnt.

    The aim is to give a boost to agricultural revolution in the country.

    The Acting Executive Director of the NCAM, Dr Yomi Kasali who spoke during the graduation ceremony of the male batch of the trainees in Ilorin, Kwara State assured that the Federal Government was committed to encouraging the growth of the agric sector.

    He said the scheme was also aimed at spreading the skills so acquired and imparting same to other interested Nigerians, just as starter packs have been coupled to be freely distributed to the trainees at the end of the rigorous programme.

    No fewer than 60 of the male trainees yesterday completed their theoretical and practical courses on fabrication of the relevant machines at the National Centre for Agricultural Mechanisation (NCAM) Ilorin, Kwara State.

    It was gathered that their female counterparts drawn across the 36 states of the federation will next month, commence their own version of the training at the NCAM.

    Represented by the Director, and Head of Department (HoD) of Farm Power and Machinery Department of the centre, AbdulGafar Kamaldeen, Dr. Kasali said the skills so acquired should serve as a security against youth unemployment in the country.

  • Hope rises in local fabrication as firm builds biggest dredger

    Hope rises in local fabrication as firm builds biggest dredger

    Nigeria is a country to beat when it comes to fabrication if the government takes the issue of local content law seriously.”

    This was the view of stakeholders at the public inspection of the on-going construction of the biggest locally made dredging machine in Nigeria. They called on the Federal Government to take sincere measures to grow local industries.

    The stakeholders said facilitating effective implementation of the provision of Local Content Law of 2010 would fast-track the desired economic growth. They noted that economies of developed countries of the world today, are driven by small and medium scale industrialists and organisations, and noted that if the content laws are fully implemented, the country’s economy will be better off.

    The cutter suction dredger machine is being built by Nwakama Dredge Nigeria Limited in Port Harcourt, the Rivers state capital. Participants on the inspection tour expressed satisfaction in Nigerian manufacturing industries especially fabrication and dredging sector.

    •Another side of the dredger being built
    •Another side of the dredger being built

    They described local industries as main drivers of the economy and said that the provision of local content Act is key to achieving the successful diversification of the economy for economic growth; they called on the National Assembly and Federal Government to enforce the Act.

    Senator Nimi Barigha-Amange, who represented Bayelsa east senatorial district, was among those that inspected the dredger being constructed by Nwakama Dredge Nigeria limited in Port Harcourt.

    Amange said major construction work can hardly take place in the Niger Delta region without sand being dredged from areas for the projects. He also said in the region land sometimes are reclaimed for community settlement so dredger is a significant tool for development in the region.

    He called on Niger Delta governors to take advantage of the opportunity the local manufacturer has created to develop their states, and stop embarking on capital freight which according to him is injurious to the economy.

    The former Law maker appealed to the federal government to strengthen policies and legislations that would support growth of fabrication of dredgers locally in the country. Amange who expressed surprise that this dredger could be fabricated locally said the government should grow this sector of the economy.

    Managing Director , Nwakama Dredge Nigeria limited, Elderd Onwuzuruigbo said the features of the first locally fabricated 18×16 cutter dredger his firm was constructing among other things include spud pillared, crew kitchen, inbuilt capacity to hold 33,000 litres of diesel and is equipped with 22 meter ladder would be operated manually.

    Onwuzuruigbo appealed to the federal government to fast track effort to make the Ajaokuta steel begin full scale production to discourage importation of steel by local fabrication companies in the country.

    The MD said inspection of the dredger while under construction became necessary to avoid any doubt after completion that it was constructed by Nwakama dredging company.

    Taagbo Monday who spoke for Rivers state chapter of Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), expressed surprise that an indigenous firm could fabricate such dredger. He called on local manufactures to identify with SMEDAN, saying that the agency was established for their benefits and growth.

    “The need for effective policy framework to encourage local manufacturers of dredgers by way of patronage and loan facilities and also stop further importation of foreign made dredgers into the country cannot be over-emphasized by what we have seen here today.

    “Local manufacturers can compete favourably with foreign their foreign counterparts, there are so much our manufacturers can offer, the government should muster the political will to enforce the content law if the country must move forward.” He stated.

    Also in their separate remarks, the State Chairman of Nigerian Association of Small and Medium Enterprises (NASME), Dr. E. Oko-Jaja and the National spokesman of Dredger Manufacturers Association of Nigeria(DMAN), Ufoma Tom-Smith corroborated Amangi, and said content law  could have been enforced over 35 years ago, stressing that further delays would inflict more torture on the economy.

    According to Oko-Jaja, “The direction we are going now as a Nation is what we have been asked to do 35 years ago and the country refused to comply with it because oil was booming, the direction we are going now is going to open every sector of the economy to take its proper place particularly the local content issue.” Oko-jaja said.

    Tom-Smith expressed satisfaction on the product and stressed that there is no more need for Nigerians to continue to import dredgers from outside.

    He said Nwakama Dredge deserves governments’ encouragement in the areas of loan facility and electricity. He noted that the brand has the four major components of a durable dredger-the Pump, Engine, Hydraulic system and electrical systems used in manufacturing the product gives it an advantage over the imported ones.

    He noted that dredging industry was also helping to reduce the challenges of unemployment in the country.

    “What we are looking for overseas is already here. The engine he iis using can run for twenty four hours , there is the advantage of availability of spare parts locally.

    “Nigerian content board has failed the dredging sector.  What are the policy they have in place to protect local dredging fabrication centres. There is no where you will do a job in the Niger delta that dredgers will not be needed.

    “The local content board is not helping the dredging industry because we don’t feel its existence.  We don’t see them in our operations. I am a representative of a dredging manufacturing company in China. The price for this dredger we are gathered here for is far less than what we give in China.

    “There is no IOC dredger in this country that has this length. Bank of industry should sponsor projects with economic importance to the nation.” He stated.

    It is expected that the innovation in the dredging industry when fully developed would stop the importation of foreign made dredgers if government encourages growth of the sector with policies.

     

  • Nigerian Content chief hails EWT on vessel fabrication

    The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Denzil Kentebe has commended the Energy Works Technology Limited (EWT), a subsidiary of the Nestoil Group for fabricating the first 90mm stainless steel clad vessel in Nigeria.

    The asset also known as a separator was designed for Shell Petroleum Development Company of Nigeria Limited’s (SPDC’s) Soku Field Development plan, which is internally clad with 316L stainless steel, with internal proprietary separation devices and weighs 83 tons.

    Speaking at the commissioning of the project, Kentebe hailed the growth of EWT within the past five years from a light fabrication company to one of the foremost pressure vessel, process equipment manufacturers and heavy fabrication yards in Nigeria.

    While pledging the Board’s commitment to help companies like EWT further develop their capacity, he commended operators especially SPDC, Total and Seplat that put work in the facility and charged other operators to support all service providers that have demonstrated competence and invested in developing their capacity in Nigeria.

    He praised his predecessor, Dr. Ernest Nwapa for laying a good foundation and driving laudable programmes, acknowledging that many of these Nigerian Content successes were birthed before he assumed leadership of the NCDMB.

    He assured that the Board under his leadership will continue to implement already established frameworks and initiate programmes that will build on the accomplishments. He reiterated that investments like the ones made by EWT were critical to achieving the Board’s vision to use Nigerian Content as a platform to industrialize Nigeria and also Government’s aspirations to create jobs and empower Nigerians on the back of oil and gas projects.

    He added that the Board “will continue to promote the establishment and utilization of Nigerian facilities and Nigerian owned assets. We will also leverage the Nigerian Content Development Fund (NCDF) to implement Capacity Development Initiatives that will create opportunities in manufacturing, engineering, fabrication, marine, subsea, drilling and well services and all other activities across the value chain.”

    The Managing Director of EWT, Mr. Emeka Nnadi credited the success of the project to the determination of SPDC, National Petroleum Investment Management Services (NAPIMS) and NCDMB to fabricate the 90mm stainless steel clad vessel in Nigeria even when the capability was novel to local services companies.

    “With this achievement, EWT has acquired the technical know-how of forming, assembling, welding and testing all ranges of thick welled pressure vessels,” he said.

    He also stated that all activities relating to the execution of the project were carried out by Nigerians, which demonstrated that Nigerian Content was viable and its impact on the Nigerian economy was worth the price.

    He announced plans by the company to begin motivating and supporting small scale fabricators to attain sophisticated capabilities as growth of this category will have a multiplier effect on the aggregate in-country potential.

  • Govt trains rural farmers on fabrication, blacksmithing

    Govt trains rural farmers on fabrication, blacksmithing

    The Federal Government has begun training young rural dwellers in tool fabrication and blacksmithing, according to Agriculture and Rural Development Minister Dr Akinwumi Adesina.

    The aim, he said, was to diversify means of livelihood, reduce poverty and promote development of rural areas.

    Adesina, represented by his Permanent Secretary, Mrs Ibukun Odusote, spoke at the National Centre for Agricultural Mechanisation (NCAM), Idofian in Ifelodun Local Government Area of Kwara State at the commencement of training for states in the Southwest.

    He added that the trainees would be exposed to means of deriving their incomes from a diverse portfolio of activities in rural non-farm sector of the economy.

    The ministry in collaboration with NCAM has organised the five-day programme.

    Adesina said the training would help “in breaking the vicious cycle of poverty when sudden shock occur in sole food production efforts within the rural economy”.

    He added: “It is obvious that when the non-farm sector is encourged and supported, it is likely to boost employment opportunity in rural settings (other than food production alone)”

    The minister also described the training as a programme that would enhance the agricultural transformation agenda of the government saying this is so becuase “The rural youths are trained in skills to fabricate domestic/industrial parts for rural economy in the production of farm tools to support our dominant rural scale farmers in their food production efforts.”

    He disclosed that the ministry would put in place a monitoring mechanism to ensure sustainability of the programme through evaluation performance of those trained.

    Adesina, who said some people would also benefit from the training in future, tasked the participant to take the training serious.

    “I specially appeal to the trainees to take the training, particularly, the practical aspect of this workshop with all seriouness and commitment as it will definately expose you to designs, drawings, foreging and fabrications that will be useful to you in this vocation for the needed transformation of our rural areas,” he stated.

    Director of Department of Rural Development of the ministry, M. O. Azeez said reliance on food production aspect of agriculture is key to rural development. He expressed the hope that the training would make the approach more functional.

    He said each of the trainees would be presented with a starter package to enable him to practise what he has learnt.

  • Farmers trained on fabrication, blacksmithing

    The Ministry of Agriculture and Rural Development, in collaboration with the National Centre for Agricultural Mechanisation (NCAM) has organised a training programme for young Nigerians living in the rural areas on tool fabrication and blacksmithing.

    Agriculture Minister, Dr Adewunmi Adesina said at the start of training for states in the Southwest geo-political zone at the National Centre for Agricultural Mechanisation (NCAM) in Idofian Ifelodun Local Government Area of Kwara State that the trainees would be exposed to making a decent living from the non-agricultural sector.

    Represented by the Permanent Secretary in the ministry, Ibukun Odusote,

    Adesina said the training would help “in breaking the vicious cycle of poverty among the rural dwellers.”

    He said: “It is obvious that when the non-farm sector is encouraged and supported, it is likely to boost employment opportunity in rural settings, apart from food production.”

    The minister also said the training would enhance the agricultural transformation agenda of the government, saying “the rural youths are trained in skills to fabricate domestic/industrial parts for the production of farm tools to support our dominant rural farmers in their food production efforts.”

    He revealed that the ministry would put in place monitoring mechanism to ensure sustainability of the programme through performance evaluation of those trained.

    Adesina, who said other people would also benefit from the training in the future, urged the participants to take the training seriously.

    “I appeal to the trainees to take the training, particularly, the practical aspect of the workshop seriously as it will definitely expose you to designs, drawings and fabrications that will be useful to you and drive the needed transformation of our rural areas,” he stated.

    Also speaking, the Director of Department of Rural Development of the ministry, M.O. Azeez said reliance on food production aspect of agriculture as the only key for rural development had hindered the scope for a multi-sectoral and integrated approach to rural development programme. He expressed hope that the training programme would make the approach more functional.

    He revealed that each of the trainees would be presented with a starter package to enable him practise what he has learnt.

  • Kaztec Engineering builds fabrication yard in Lagos

    Kaztec Engineering builds fabrication yard in Lagos

    Kaztec Engineering Limited, an oil service company and a subsidiary of the Chrome Group owned by business mogul Sir Emeka Offor is building a fabrication yard at the Snake Island in Lagos.

    The Technical Director, Chrome Group, Adebanji Babarinde, told our correspondent at a the oil and gas conference and exhibition in Abuja, that the project is at advanced stage.

    The fabrication yard in which the company would be fabricating jackets, topsides, equipment and skills development, is being handled with its technical partners, Addax Petroleum Limited. Barring unforeseen occurrences, the first phase of the fabrication yard would be completed by end of this year while the subsequent phases will be completed by middle and end of next year.

    Babarinde spoke on the benefits of the Nigerian Content Act to local companies, poaching of skilled manpower in the industry and what Kaztec Engineering is doing to remain the leading indigenous oil service company in Nigeria.

    He said: “We (Kaztec Engineering) see Nigeria oil and gas conference as an avenue to showcase our potential, capabilities and to also encourage others, particularly indigenous people that we have a lot of possibilities in Nigeria.

    “On our plans for 2013 and going forward, we want to do what we have been doing better and also to expand. Right now we are putting up a fabrication yard at the Snake Island in Lagos and with that facility we should be able to fabricate jackets, topsides, and develop a lot of talents in the process all within Nigeria. We have some projects we are still doing with our clients and our plan is that we complete those projects on schedule and within cost.

    “Some of the ongoing projects include field development for Addax, which involves installation of subsea pipes, topsides, decks, risers platforms and commissioning of facilities. Some may be replacement of pipes, which involves removing old pipes and putting new ones there. The field development is to contribute towards production of more crude oil by Addax.”

    On the Nigerian Content Act, he said: “The Act is the best thing that has happened to Nigeria particularly indigenous participation in the oil and gas industry. It has just encouraged local participation. It has helped us really. It is because of the encouragement we received from the Act and the people that are driving the Act that enabled us local people to acquire assets that are very expensive. And we are rest assured that once we have these assets, we have the law backing us up to get jobs from the international oil companies (IOCs) and that is helping. We have been engaged in the Addax job for three years.

    “If not for the Local Content Act, this job could have gone to foreigners. We couldn’t have had the courage to put our money in these expensive assets. I think it is one of the best things that have happened and it is something that should be encouraged. We need the right people there, the leadership is good and committed and they need to continue.

    “For the fabrication yard, it should be completed in stages. The first phase should be completed by this year, the second stage by middle of next and some end of next year. We are working with Addax as our technical partners to develop the facility.”

    On poaching of skilled manpower, he said: “There is nothing you can do about it. The only thing you can do about it is to treat your staff well. It is a free market economy. If you don’t treat your staff well and he gets a better offer, you cannot hold him. There is no law that says you should hold him. So poaching will continue. You must put up a procedure to keep your good staff and it is not a matter of whether you like it or not, just put a procedure to keep your good staff and be able to throw away the bad staff.

    “We subject our workforce to regular development through regular managerial, technical and specific training. We also have training that is related to specific job, for instance, if there is any job a member of staff is doing and we found out that there is a gap, we organise training for the staff to close the gap.

    “We organise training on safety, which is continuous and very important. We take them through safety training from time to time. If staff’s certificate on particular safety training expires, the person undergoes another training to renew it. We have expatriates and our plan is not to keep expatriates forever because that will be against the Local Content Act. What we do is that for every expatriate we have, one or two Nigerians work with him to understudy him and their progress is monitored.”

    The Consultant to Kaztec, Dr. Njideka Kelley, said: “The company is absolutely excellent in terms of compliance with international best practices and standards. What Kaztec is doing to encourage skills development and safety consciousness among staff boils down to our Chairman, Sir Emeka Offor’s aspiration in encouraging and building people and ensuring the best minds are our first assets and secondly safety. Poaching doesn’t happen in our company because of the way we treat our people.”