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Tag: NCDMB

  • NCDMB: contractors to pay five per cent interest

    Community contractors in the oil and gas industry will only pay five per cent interest rate when they access the Nigerian Content Intervention Fund (NCI Fund), the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has said.

    He stated this during the interactive session organised by the Board in Abuja for civil societies organisations (CSOs), adding that such contractors execute small scale projects and would not pay the same interest rate like conventional oil and gas service companies.

    The concession for community contractors is in line with the Board’s Community Content Guidelines and provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

    The aim is to promote the participation of genuine community contractors in oil and gas projects and integration of communities in the industry value chain as part of the strategy to grow the local economy and promote peace in the communities.

    Wabote also promised that disbursement of the Content Fund to oil and gas companies will start this year. The loan will be disbursed directly to qualifying companies by the Bank of Industry (BoI) and repaid within five years at eight per cent interest rate. The NCI Fund, he explained, will cater for manufacturing, project financing and equipment purchase. A key consideration for granting loan for a project is the impact it would make, he added.

     

     

  • Local content: NCDMB, BoI mull funding increase to $200m

    Local content: NCDMB, BoI mull funding increase to $200m

    The Nigerian Content Development and Monitoring Board (NCDMB) may increase its loanable funds to qualified oil and gas operators under the Nigerian Content Intervention Fund (NCI Fund) from $100 million to $200 million.

    The Executive Secretary of NCDMB, Simbi Kesiye Wabote, made this known yesterday during a visit to the newly appointed Managing Director of the Bank of Industry (BoI),  Olukayode Pitan, in Lagos. NCDMB appointed BoI as the custodian and manager of the fund.

    The NCDMB and BoI launched the NCIFund in July 2016 with $100 million, but its implementation was delay because of the need to fine-tune its governance process.

    The NCI Fund replaced the former model that required the Nigerian Content Development Fund (NCDF) to provide partial guarantees and 50 per cent interest rebate to service companies that obtained facilities from commercial banks for asset acquisition and projects execution. The NCDF had about $600 million in its custody.

    In the previous order, industry stakeholders experienced difficulties in accessing funds, a development that necessitated the change of strategy by the board. Wabote said the new governance framework for the Fund has been finalised, saying the updated Memorandum of Understanding (MoU) with  BoI will be signed within the next few weeks to signal the take-off of the scheme.

    Key features of the NCI Fund, he said,  are that the loans will be disbursed directly by  BoI at single digit interest rate and repaid within five years, adding that only contributors to the Nigerian Content Development Fund (NCDF), with bankable proposals in the oil and gas industry can approach the lender for the facility.

    Wabote said unlike agriculture, aviation, and mining, among others were various intervention funds are provided,  there was none for the oil and gas sector before now.

    Industry stakeholders, including the Petroleum Technology Association of Nigeria (PETAN) and Oil and Gas Trainers Association (OGTAN), described the NCI Fund model as a great initiative that would address the paucity of funds, creating huddles for operators to access credit which often beset manufacturers, service providers and other key players in the Nigerian oil and gas industry.

    The Board was set up by an advisory committee in 2012 for the NCDF with a view to deepening transparency and ensure involvement of key stakeholders in its administration.

    Representatives of the international oil companies (IOCs), PETAN, OGTAN and BoI make up the advisory committee.

    The BoI chief expressed delight at the partnership between the Bank and NCDMB. He said BOI has presence in 21 states of the federation and is well positioned to support the Board achieve its objectives in effective loans disbursement and management for the oil and gas industry. He assured that BoI will work with NCDMB to source additional pool of funds for this vital sector of the economy.

    He said intending beneficiaries from the Fund must have evidence of having previously executed contracts in the industry and must be up-to-date with their remittances to the NCDF, adding that Bol will obtain confirmation from the NCDMB before any application can be successful.

    BoI said the NCI Fund will attract a single digit interest rate of eight per cent with a tenor ranging from one to 10 years, with a maximum moratorium of 12 months from date of loan disbursement, and $10 million maximum obligor limit.

    The NCI Fund is sourced from the statutory NCDF which is funded from one per cent that is deducted from the value of all upstream contracts. The NCDF is underpinned by Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which provides that the funds be used for developing capacity in the oil and gas industry.

  • NCDMB warns against single sourcing, selective tendering

    NCDMB warns against single sourcing, selective tendering

    The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has warned companies against engaging in single sourcing and selective tendering, stressing that reasons for such decision must be justifiable and discussed with the Board ahead of execution.

    Wabote spoke when he led the NCDMB management to the headquarters of ExxonMobil in Lagos. He also cautioned oil firms against irregular spot hiring and utilisation of vessels under the guise of emergency.

    The NCDMB chief also explained that the visit was in line with the b oard’s efforts to encourage and support operating companies to introduce and execute new projects needed to sustain and grow Nigerian Content in the oil and gas industry. He reiterated the Board’s determination to shorten the industry contracting cycle, which informed the adoption of definite timelines for statutory approvals and pioneering the development and use of Service Level Agreements (SLAs).

    The first SLA was signed between the Board and the Nigerian Liquefied Natural Gas Company (NLNG) and it commits the parties to comply with Nigerian Content Act and timely approvals of documents. The model will soon be replicated with other operating companies, he added.

    Wabote also advised ExxonMobil to begin early to engage the Board on the development of its Owowo field to enhance utilisation of in-country capacities.

    On the status of the Nigerian Content Intervention Fund (NCIF), Wabote said the disbursement to deserving companies was yet to start because the board is working to perfect the governance process, adding that the funds would only be disbursed through a banking process, after proper risk assessments so as to create the needed confidence and trust.

    The Managing Director of ExxonMobil Nigeria, Mr. Paul McGrath, said compliance with the provisions of the Nigerian Content Act is not only a legal and moral obligation for operating and service companies but also a good strategy for improving profitability and sustainability of operations.

    He promised that ExxonMobil will collaborate with the board to achieve its mandate, assuring that “together we can transform things.” He admitted that the company had defaulted in complying with some provisions of the Act in the past.

    McGrath who was appointed in March 2017, assured that the oil giant would henceforth comply with all provisions of the Act alongside associated regulations. He added that the company would also seek the Board’s guidance and assistance when faced with difficulties and exigencies of business.

    “The new leadership has zero tolerance for Nigerian Content violations and non-compliance issues. If we must do, we have to first discuss with NCDMB for guidance,” he said.

    He also underscored the collaboration ExxonMobil had enjoyed from the NCDMB overtime, which contributed to the company’s successes. He pledged the company’s total support for the Board’s initiatives, stating that it is open to staff exchange between the two organisations and is working to open a liaison office in the board’s new headquarters, in Yenagoa, Bayelsa State when completed.

  • Govt saves $50m yearly from domestication of training, says NCDMB

    Govt saves $50m yearly from domestication of training, says NCDMB

    Domestication of personnel training in the oil and gas industry saves the nation about $50 million yearly, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has said. He made this known at  the graduation of trainees from Danvic Petroleum School in Lagos.

    Wabote, represented by the Board’s General Manager, Capacity Building Division, Ikponmwosa Oviasu, told The Nation on the sidelines at the event that before the signing of the Nigerian Content Act in 2010, the nation was losing $100million to foreign training in the industry.

    He said: “We are here to support the graduation of the first set of trainees from the Danvic Petroleum School after the completion of six months training programme. That is the first phase and the second phase, which is critical, is the attachment of the trainees to the industry for the on-the-job training for 12 months.

    “Danvic has made them acquire the prerequisite experience that will make them ready for the industry. I can assure you once they finish the one year attachment to oil firms, they will become really employable and will be ready to face all the challenges in the industry.

    “The Board values human capital seriously and we have done similar things in the past by assisting geoscientists and attaching them to major oil companies – Shell, Chevron and Mobil, and marginal fields operators, among others.We work with all stakeholders to ensure we attain common goals.

    “Therefore, the essence of this  training is to ensure that Nigerians participate in the industry by acquiring critical skills for work being done by expatriates. We will continue to support players, such as Danvic, to ensure that the trainees are made for employment in the industry.

    The Managing Director/Chief Executive Officer, Danvic Petroleum International Nigeria, owners of the petroleum school, Dr. Mayowa Afe, told The Nation that institution was established to bridge the gap between the university and industry to enable the students of the institution acquire the knowledge that was not imparted to them in tertiary schools.

    He noted that the good thing about the institution was that upon graduation, the students would be helped  to get jobs within one year so that the company can use it to assess you for proper employment.

    “I’m glad to tell you that the graduates are starting work this week and the companies will be paying up to N250,000 per month as interns. Some people that graduated from universities in Nigeria stay up to five years in the labour market looking for jobs. They go for interviews and don’t get employed.

    “Therefore, this is a realisation of our long-term vision. Those that are unemployed, some of them have been outside the university for about five years and age is no longer on their side. They are not working and if they are called for interviews, they cannot pass. This is a school that is bridging the gap for them and we will establish the first oil and gas university in Nigeria. That is where we are going but we are starting with these steps to actualise it. If we are able to train our people and they become employable, it will certainly reduce the number of foreigners we bring into Nigeria to work. Our objective is to train Nigerians to become professionals that the oil and gas industry would be proud to employ,” he added.

  • NCDMB, Dangote Group to partner on refinery’s capacity

    The Nigerian Content Development and Monitoring Board (NCDMB) has agreed to collaborate with Dangote Industries Limited in the construction of the company’s 650,000 barrels per day refinery.

    The Dangote Group also pledged, among others, to use local service firms for fabricating modules, pipe coating as well as the supply of paints and cables. In addition, Dangote and the Content Board are to hold technical meetings and tour the project site to examine other content opportunities on it.

    The deal was sealed in Lagos when the Executive Secretary, NCDMB, Simbi Wabote, led a team from the Board to meet with the management of Dangote Group, led by the President, Alhaji Aliko Dangote.

    Responding to the presentation made by the Executive Secretary outlining Content capacities and how they can contribute to the refinery, Joseph Makoju, the Honorary Adviser to the President, Dangote Group, confirmed that “there are a number of opportunities for collaboration. We want to partner with you and we hope to have mutual beneficial relationships”.

    Makoju noted that the company planned to set a record on local content with the petrochemicals plant, which would be biggest single train refinery in the world.

    He identified the Dangote Academy as another platform for collaboration, especially as the Academy’s focus will be expanded beyond the cement industry to include the petroleum industry and other key sectors that the Group operates in.

    Wabote praised Dangote for investing in manufacturing across various sectors of the economy and creating employment for Nigerians. He expressed confidence that the company’s foray into the downstream sector of the petroleum industry would revolutionise the sector and reverse the nation’s dependence on imported petroleum products.

    The NCDMB chief told the Dangote team that the implementation of Nigerian Content Act in the upstream sector of the oil and gas industry had developed huge capacities that should be leveraged for the refinery project.

    He advised the company to visit the oil and gas service firms to verify their capacities and contract them in line with the provisions of the Nigerian Content Act, which mandates patronage of facilities in-country.

    Wabote clarified that companies operating in the downstream sector  were not mandated to remit one per cent of their contract sums to the Nigerian Content Development Fund (NCDF).

    On the company’s plan to train local personnel who would run the refinery, the Executive Secretary suggested that the trainees be picked from the Nigerian Oil and Gas Industry Joint Qualification System (NOGICJQS), which has database of Nigerians with various competencies in the oil and gas sector.

    He asked the Dangote Group to engage the Oil and Gas Trainers Association (OGTAN) because  its members had the capacity to provide some of the training being envisaged by the company for their new employees.

  • NCDMB, NLNG sign compliance agreement

    NCDMB, NLNG sign compliance agreement

    The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Liquefied Natural Gas Company (NLNG) have signed a service-level agreement (SLA) committing to compliance with the provisions of the Nigerian Content Act and timely approvals of documents.

    NCDMB Executive Secretary, Simbi Wabote and the Managing Director of NLNG, Tony Attah signed the documents on behalf of their organisations in Abuja.

    The SLA, first of its kind in the oil and gas industry, would be adopted as the template for managing documentations, contracting and expatriate quota between the Board and international and local operating companies.

    The agreement obligates NLNG to submit to the NCDMB documents like the quarterly job forecast, Nigerian Content plan, bidders list, Nigerian Content evaluation criteria and Nigerian Content technical bid, among others, while the Board has to respond on specific timelines. Should the Board fail to respond in accordance with the provisions of the SLA, NLNG can proceed with its tendering process after informing the Board in writing or email.

    The Executive Secretary acknowledged that NLNG’s operations were time sensitive, adding that the SLA would ensure that “NLNG is not exposed to violations and NCDMB is not a blocker to the business.”

    He said the SLA was a key strategy of shortening the contracting cycle, cutting the cost of projects and improving compliance with the Nigerian Content Act.

    Wabote explained that activities of the NCDMB impact on the business of the NLNG while the company’s operations also influence how the Nigerian Content Act is viewed by stakeholders.

    He also canvassed greater collaboration between the two organisations, requesting for NLNG’s support towards the development of a drydock facility in the Niger Delta region, to cater for the maintenance of big vessels, including LNG carriers.

    The Managing Director of NLNG praised the Board for the speedy development of the SLA, describing it as an innovative way of addressing the company’s concerns.

    He emphasised that NLNG was bound to comply with provisions of the Nigerian Content Act but was also pressed by the urgency required in making decisions for its business.

    Attah noted that the SLA provided an opportunity for consolidating the company’s collaboration with the Board and delivering on its mission of contributing significantly to the Nigerian economy.

    He recalled that NLNG recorded high Nigerian Content achievements in the construction of its last six ships as goods worth over $10 million were exported from Nigeria to South Korea and utilised on the ships.

    On the development of drydock facilities, Attah promised to work with the Board, adding that the company had previously constituted a consortium to identify and assess possible sites but was yet to make appreciable progress.

  • NCDMB in talks with oil firms on contract processing

    NCDMB in talks with oil firms on contract processing

    Nigerian Content Development and Monitoring Board,(NCDMB) and other stakehholders in the value chain are discussing how to improve ways contracts are processed.

    The Board said it was meeting agencies involved in contracts processing, among others, to achieve the goal.

    NCDMB’s Executive Secretary Simbi Wabote said the agencies needed to improve their internal mechanisms, before they could improve methods of processing contracts in the oil and gas sector.

    He said the initiative would help in meeting deadline for processing contracts by the  petroleum industry.

    Wabote, who spoke at a stakeholders’ forum in Lagos recently, said the Board would help in providing capacity for infrastructure, manufacturing, procurement and others, that are vital to the growth of the oil and gas sector  and the economy.

    He  said NCDMB  was working to know and close the skills gap, by partnering with investors.

    He said the Board has been positioned to review contracts within 100days, provided the documents submitted are in line with the Nigerian Oil and Gas Industry Content Development (NOGICG) Act.

    Through the intervention, he said the Board had over 1,500 trainees attached to oil and gas projects, trained 100 and 500 people in geosciences and environmental remediation, captured over 7,000 candidates in its JQS platform.

    He said under the new strategy, beneficiaries would be provided with skills and certifications needed for employment in Nigerian and beyond.

    According to him, the board has what it describes as 60-20-20 principle in place, adding that through the principle, 60 per cent of its training resources are devoted to young Nigerians to assist them in securing employment; 20 per cent chanelled towards improving productivity, while another 20 per cent  is devoted for  trainings on softwares.

    On capacity building, he said NCDMB has met the international oil companies (IOC’s)standard and the service providers on the issue.

     

  • Saipem’s confined space welding technology excites NCDMB

    The Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has expressed his surprise at the size of Saipem’s facility and the amount of work being done by Nigerians at Saipem Fabrication Yard in Rumuolumeni, Port Harcourt.

    Addressing workers of the company when he led members of the NCDMB and other stakeholders on a tour of the Saipem fabrication yard, which also coincided with the unveiling in Port Harcourt of a logo to commemorate Saipem’s50 years of operations in Nigeria,  Wabote described the facility as a world-class fabrication yard which has given Nigerians an opportunity to show that there is nothing they could not do.

    His words: “When I went through this site with my colleagues, what was on my mind was that there is nothing Nigerians cannot do. I have been in the oil and gas industry for 25 years and I know when we started how everything that was utilized in the oil and gas industry was imported. Fabrication of things as easy as even spools were all imported. What they told us then was that Nigerians did not have the capacity to fabricate those items, hence they were imported.

    “But going through this yard today, I am encouraged more than anything else to reaffirm my belief in this country to do greater things. Today, this yard has direct employment of 3,500 people. Indirectly, that creates about 20,000 jobs within the immediate community and within the Niger Delta itself. We are not talking about the induced employment this will create within the immediate vicinity of Rumuolumeni community.

    “Our hope is that we will continue to keep this yard busy. Our desire is that we will increase the number of employment opportunities that this yard will create. I am sure you should be very proud of what you have done in building these magnificent structures I am seeing here and I know future generations will be proud of you.”

    He stated that it is the desire of the present administration to “internalize most of the things we are supposed to do in this country to ensure that we continue to create meaningful jobs for the teeming Nigerian youths, and this is a great example that we are achieving that in the oil and gas industry. As you can see, 95 per cent of what we need in the oil and gas industry is fabrication; all you see in the oil and gas industry is iron and steel and you people have demonstrated that if there is an opportunity you can overcome.”

    He added: “We hope and pray that other projects that are in the funnel currently will immediately come on the back of EGINA. Today, Saipem fabrication on EGINA project is about 40,000 tonnes. That is huge amount of steel. One day I believe we will perhaps do 100 per cent of the tonnage that is required in an FPSO construction. The onus is on us to encourage this facility to grow.”

    Wabote  hailed the confined space welding technology developed by Saipem Contracting Nigeria Limited in the EGINA project and described the technology as a great innovation that should be shared in the oil and gas industry.

    He disclosed that the Board would hold a knowledge-sharing session with international oil companies (IOCs) to enable the companies “share experiences on their challenges, costs and local content” so that they could learn from each other.

    Wabote said: “This visit has made us realise the need to categorise fabrication yards in Nigeria so that potential investors will know the capacity of each of the yards.This is a world-class fabrication yard. We were in South Korea two weeks ago and what we saw there in terms of fabrication is not different from what we are seeing here.”

    The Managing Director of Saipem Contracting Nigeria Limited, Mr. Guido D’Aloisio, said the company owed its success in the country to the loyalty and hard work of its staff.

  • NCDMB praises INTELS over Onne facility

    The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB),  Simbi Wabote, has commended INTELS Nigeria Limited for developing the Onne Free Zone into “a world class facility.”

    Wabote, who spoke after a tour of the Onne Free Zone in Rivers State,  commended the various companies that have invested and are operating at the facility.

    He said: “First I want to thank the management of INTELS for organising this visit. We came here not just to visit INTELS but also to visit most of the companies operating within this facility.

    “We have seen FMC, Pipe Coaters, we also saw GE, One Subsea, AOL Orwell and a couple of others. I can tell you that it is a very impressive facility: you have a lot of clients here.

    “What I see from discussion and interaction with them, I see this facility as world class. I believe they all want to remain within this facility to continue their business because I don’t think there is any other facility in this country that can match what you have here.

    “For me, it is mind blowing; a lot of us do not know what is here; we hear about Onne, we hear about INTELS, our perspective of Onne and INTELS is completely different.

    “We didn’t think it could even measure up to NPA in Apapa port and the other ports in Lagos. This is quite significant; given the number of companies you have here, given the marine activities that are ongoing here,” he stated.

  • NCDMB, NIMASA, others back in-country integration of Egina FPSO

    The  Nigerian Content Development and Monitoring Board (NCDMB) has thrown its weight behind the in-country Egina floating production, storage and offloading (FPSO) units at the SHI-MCI yard in Lagos.

    A joint venture between Samsung Heavy Industries (SHI) and Lagos Deep Offshore Logistics Base (LADOL), the the firm’s objective is to build and integrate ships and FPSO vessels.

    SHI-MCI FZE known as Samsung Heavy Industries -Mega Construction Integration Free Zone at the LADOL Free Zone in Lagos is handling a part of the integration that will produce Egina Deepwater Field in Oil Mining Lease (OML) 130 to be operated by Total Upstream Nigeria Limited (TUPNI).

    SHI is the main contractor, while LADOL is a subcontractor and one of the local content vehicles for the FPSO project.

    Beside NCDMB, other agencies supporting the local integration of Egina FPSO are Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Ports Authority (NPA), Nigerian Customs Service (NCS) and the Nigeria Export Processing Zones Authority (NEPZA).

    According to the Executive Secretary of NCDMB, Simbi Wabote, the integration at the SHI-MCI fabrication yard would collaborate with the Board and ancilliary agencies, adding that this would be the first time this would happen in the country.

    The agencies declared their commitments to the project after inspecting the FPSO under construction at the SHI yard in Geoje, South Korea.

    The FPSO is scheduled to sail in June and will arrive in the SHI-MCI yard in Lagos, in September, where the six modules fabricated in-country will be integrated, with 21400 pre-inauguration tasks it is expected to be performed. After the integration, the FPSO will be towed to the Egina field, about 200 kilometres south of Port Harcourt, the Rivers State capital and hooked-up for operation.

    Speaking during the visit, Wabote urged TUPNI to identify issues that required the Board’s intervention ahead of the arrival of the FPSO. Such approvals as authorisations for expatriates would lead the integration, towing of the FPSO and other scopes, would guarantee the smooth conclusion of the project, he said.

    He underscored the importance of the Egina project to the economy, particularly the addition of 200,000 barrels to the country’s daily crude. Egina will also contribute to the Federal Government’s commitment to address production decline and shore up national revenue.The  industry needs more projects to build capacity and keep facilities from wasting, he added.

    Wabote hailed Total and SHI for their Nigerian Content credentials on the project, adding that such huge Nigerian content happened in the project because of the push by the NCDMB, though Total was convinced it still needed a little push.

    “We are happy with the progress of the project and its contribution to local content and the national economy. FPSOs have been built abroad in the past and moved straight to site. This is the first time that many Nigerians will see what it looks like.”

    The NCDMB  chief also announced plans by the Board to organise a knowledge sharing session on Nigerian Content to enable international oil companies (IOCs) share strategies they deployed in their projects. The session, he explained, would ensure that IOCs leverage local Content experiences of others when planning projects or faced with similar challenges.

    NCDMB, he said, was developing guidelines that would ensure that Nigerian companies participate in the operations phase in oil and gas projects, noting that the sustainability of the Nigerian Content lies in the operations phase which often lasts about 25 years.

    TUPNI Deputy Managing Director, Mr. Ahmadu Kida Musa, commended the collaboration between his firm and the NCDMB teams on the Egina project, charging the Board to continue pushing the boundaries of Nigerian Content implementation.

    He commended regulatory agencies that pledged to support the in-country integration phase, noting: “Some of the things we will be seeing have not been done in Nigeria. We would need accelerated approvals while not breaking the law.”

    He praised SHI and LADOL for forming the consortium that has made  FPSO integration possible, noting that they had positioned themselves for future projects. He challenged the partners to work together to further develop the yard to attract the African market.

    SHI-MCI Managing Director  Mr. C. W. Kim, reaffirmed his firm’s preparedness to help Nigeria boost its technological knowhow. This informed the decision to make the long-term investment, he said.  “We decided to invest in Nigeria for the long term, not just for Egina. It would not make sense to invest for just one project; it needs several projects. We have capacity in construction and we have been in business for over 40 years. To succeed in Nigeria, we plan to be competitive and operate with a long term plan,“ he added.

    The in-country integration of the FPSO and fabrication of six modules of the vessel created 5000 direct jobs and 5000 indirect jobs.