The Nation Newspaper

Tag: NCDMB

  • Firm seeks more deals from IOCs

    Indigenous operators in oil and gas sector have urged the Federal Government to ensure that the gains of the Local Content Act get to their target by creating opportunities for the employment of Nigerians by multinational companies in jobs which Nigerian firms can to execute.

    The General Manager, Fenog Nigeria Limited, Mr. Uwakwe Chukwudi, made the plea at the commissioning of a self-propelled swamp lay barge; three service vessels; PD350 ton HDD rig; HDD water borehole and soil sample collection rig, and phase 1 of 350 meter rigid pavement access road in base 3 of the company’s jetty/fabrication yard at Ugbuwangwe, Warri, Delta State.

    Chukwudi, who called on President Goodluck Jonathan; the Minister of Petroleum Resources; the Group Managing Director of NNPC; Group General Manager, NAPIMS; the Executive Secretary and members of the NCDMB; the International Oil Companies ( IOC’s) and other stakeholders in the oil and gas industry to assist local companies that have world class capabilities by giving them jobs.

    He said his company has been playing its part to ensure that the wealth of the oil and gas industry gets to all Nigerians by massively investing in the building of heavy equipment.

    He said the latest equipment will no doubt add momentum to the success of Fenog in the oil and gas industry, urging  the IOC’s and government bodies to adopt Fenog’s novel method of pipeline installation as a better technology.

    Chukwudi said: “Local companies like Fenog Nigeria Limited deserve encouragement to participate actively in the oil and gas industry. When we are encouraged, development will spread to all parts of the oil-rich Niger Delta region and a good percentage of our army of unemployed youths will be employed. We count on your support for patronage in the days, months and years ahead.

    “In addition to being the 2014 NOG indigenous Company Award recipient, Fenog Nigeria Limited is on the sure roadmap of being included in the world’s Guinness Book of Records for installing a 67km by 20inch Amukpe to Escravos pipeline, using Fenog’s pioneered, Continuous Horizontal Directional Drilling (CHDD) method, which is the longest and most secured string of pipeline in the world.”

    He, however, called on the Petroleum Minister, NNPC Chief, NCDMB and NAPIMS, to prevail on Shell Petroleum Development Company (SPDC) to award his firm the Trans Niger Pipeline Loopline (TNPL) project since huge resources have been expended in acquiring these equipments.

    The Executive Secretary, Nigeria Content Development and Monitoring Board (NCDMB), Ernest Nwapa, commended Fenog for acquiring such equipment and promised the firm that the board would do all within its power to ensure that the Local Content Act is strictly adhered to by the oil companies.

    He noted that it was good to have partnership with companies that are progressive and have the capacity to do some of the works done in the oil and gas industry, adding that investments such as the ones embarked upon by Fenog that grows the economy. “I also like the way Fenog grows partnership with other oil companies. This is another way of building capacity. We are in a situation whereby the country is faced with only two or three industries and our economy has been sustained by these industries. It is a good  thing to have partnership with companies that are progressive and companies that have the capacity to do some of the works we are doing in the industry today. It is investment like this that grows the economy,” he said.

    The Executive Director of Fenog, Mr. Mathew Tonlagha said: “We have invested heavily on capacity over the years, but with low patronage from the industry. It is the Federal Government that holds us now. We are commissioning our equipment and they are supposed to give us projects that they are supposed to be commissioned. This is the third time we are inviting them to come and commission our modern equipment, but we have not invited them to come and commission any project here. So it is a challenge to the Federal Government.”

  • ‘Local Content has attracted investors’

    The implementation of the Nigerian Content Act has attracted a crop Nigerian investors who are determined to commit huge resources to owning hi-tech assets and facilities to be used in executing projects in the oil and gas industry rather than play second fiddle roles to expatriates, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Ernest Nwapa has said.

    Nwapa spoke in Port Harcourt, Rivers State after commissioning a work shop established by Benkline Nigeria Limited for the repair of oil and gas pumps, refurbishment and refitting of mechanical seals, gear boxes and associated equipment. He stated that many Nigerians are no longer interested in acting as agents for foreign partners, but “are investing alongside their partners, learning how to manage the business and operate complex equipment, repair and even do research and development.”

    Nwapa noted that the newly developed bullish attitude of Nigerian investors validate the wisdom of President Goodluck Jonathan in signing the Nigerian Content Bill into law in 2010 as well as the commitment of the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke in supporting the implementation in a structured and sustainable manner.

    He said: “we are happy that the industry has come to accept this as a way of life and we no longer have to push and pull in all directions. What is going on today is a continuous collaboration between the government and the industry, between Nigerian companies and Original Equipment Manufacturers (OEMs).”

    He dispelled the notion that the Board was forcing OEMs to set up in Nigeria, stressing that the local oil and gas industry provided sufficient business and market to justify investments in-country.

    Nwapa stated that many locations overseas where services were hitherto performed for the Nigerian oil and gas industry before the passage of the Nigerian Content Act were smaller and less equipped than most facilities being set up by Nigerians since the Act came into effect. “A few years ago, we were told that many oil and gas equipments were very intricate and if not well used can create disasters for the oil and gas industry. But valves are now being taken out from the fields, tested and maintained here and put back successfully,” he said.

    He commended Benkline for successfully partnering with OEMs- Frank Mohn AS of Norway and Eurofiliases of France to deliver hi-tech services in the industry, adding that the Board was promoting the same policy under its Nigerian Oil and Gas Park Scheme (NOGAPS), as a strategy to get OEMs to work with small and medium enterprises and mentor them to manufacture some of their components.

    He challenged international and indigenous operating companies to patronise Nigerian service companies who set up facilities, adding that government was committed to support every investment that is made in-country.

    He reiterated that the value of new investments made by Nigerian service companies in the last four years had hit $5 billion, noting that the development pointed to massive investments that would come into the industry in the next five years.

    The Chairman, Board of Directors, Benkline Nigeria, Larry Osai, advised Nigerian investors to partner with persons and firms that can contribute resources and knowledge so as to grow their companies and leave legacies. He attributed the company’s growth to the government’s local content policy.

     

  • NCDMB, NNPC, others eye gas cylinder manufacturing

    The Nigerian Content Development and Monitoring Board (NCDMB) has begun working with the Nigerian National Petroleum Corporation (NNPC), Oando Group, Sahara Energy and other key players in the gas industry to promote local manufacture of gas cylinders.

    At a meeting of stakeholders in the Liquefied Petroleum Gas (LPG) also called cooking gas, convened by the NCDMB at its headquarters in Yenagoa, Bayelsa State, an agreement was reached to set up a committee that will develop a strategy that will drive the manufacturing of cylinders, deepen utilisation of gas and address challenges that might hinder the plans.

    The Executive Secretary, NCDMB, Ernest Nwapa, stated at the meeting that President Goodluck Jonathan’s administration is promoting manufacturing in all sectors of the economy, particularly in the oil and gas industry because of the potentialities of creating thousands of jobs, retaining spend in-country and developing technology.

    Nwapa described gas cylinder manufacturing as a quick win, noting that local service companies now fabricate complex structures for the oil and gas industry and several companies invest millions of dollars in setting up facilities and acquiring assets even before securing contracts. “once key persons in leadership on the government and industry side agree on the framework, it will work. Today, investors have put down their funds on assets that depend on long term contracts. Gas cylinders are tied directly to a huge market; the opportunities are there, even across the Gulf of Guinea,” he added.

    Nwapa confirmed that once local manufacturing of gas cylinders begin; the government would ban the importation of gas cylinders and insist that LPG producers like Nigeria LNG Limited and ExxonMobil deliver gas only to facilities that comply with extant policies. He noted that the push for local manufacturing of gas cylinder would be integrated into President Jonathan’s Gas Revolution agenda and complement government’s drive to get all Nigerians to adopt gas as the preferred fuel for cooking.

    He suggested that NCDMB could use part of the Nigerian Content Development Fund (NCDF) to support companies that are committed to go into gas cylinder manufacturing and expressed hope that the Federal Government through the Bank of Industry, Ministry of Petroleum Resources, Central Bank of Nigeria and the Board would work together to provide enablers for the scheme.

    The Managing Consultant of PEJAD Nigeria Limited, Tony Ogbuigwe, stated that NCDMB’s gas cylinder manufacturing scheme was supported by Section 53 of the Nigerian Content Act, which prohibits the importation of welded steel products. He stated that only five per cent of the 26 million Nigerian families currently use LPG as their cooking fuel, though the NNPC, Oando, Sahara and other stakeholders were implementing several initiatives to grow consumption.

    He said that about 2.5 million cylinders were estimated to be in the country and if 10 per cent of the 26 million families in Nigeria were to use gas, with each owning two cylinders, the demand for gas cylinders will grow to five million. “20 per cent using LPG will generate a demand for 10 million cylinders; 30 per cent using LPG will generate a demand for 20 million cylinders,” he said.

    Ogbuigwe said that gas cylinders have a safe life of about five years saying “assuming that 30 per cent of the cylinders will become due for replacement each year, it implies a demand for manufacturing of three million cylinders per year, six gas cylinder manufacturing plants at 500,000 capacity each will be required.”

    The Managing Director, NNPC Retail, Mr. Chris Osarumwense pledged the corporation’s commitment to promoting local manufacture of gas cylinders, noting that prospective local manufacturers of cylinders must be challenged to meet key safety standards set by the Standards Organisation of Nigeria (SON) and other certifying agencies.

    He stated that gas usage must also be grown reasonably before it can support local manufacturing of gas cylinders on a cost-effective basis, suggesting that the price of gas and cylinders must be reduced significantly.

  • Local Content Board summons NAOC chief over dispute with Arco

    The Nigerian Content Development and Monitoring Board (NCDMB) has invited the Managing Director of Nigerian Agip Oil Company (NAOC), Mr. Massimo Insulla, to a meeting on the dispute between it and Arco Petroleum Engineering Company Limited over the maintenance of Obob/Ebocha/Kwale Gas plants.

    The invitation followed NCDMB’s receipt of a letter of complaint dated September 10 from Arco Petroleum on the matter. In the letter, Arco alleged, among other things, that NAOC and General Electric “are ganging up to forcibly remove an established indigenous contractor like Arco that can prove its mettle in the maintenance of such hi-tech equipment exclusively for six months”.

    On the intervention, the Executive Secretary, NCDMB, Ernest Nwapa, said the Board would continue to ensure that the provisions of the Nigerian Content Act were adhered to in relation to any contract or operation in the oil and gas industry.

  • Govt to ban gas cylinder import

    The Federal Government is planning to ban the importation of gas cylinders to encourage local production of the product, the Executive Secretary, Nigerian Content Development Monitoring Board (NCDMB), Ernest Nwapa, has said.

    He said the government through the Nigerian National Petroleum Corporation (NNPC) is promoting the use of cooking gas as an alternative to kerosene due to its cheaper, safer and cleaner attributes.  But the issue resulted in a concomitant increase in importation of gas cylinders into the country.

    Nwapa told The Nation that the government would ban importation of the product if people refused to stop the importation cylinders as directed.

    He said: “The government is advocating the use of cooking gas otherwise known as Liquefied Petroleum Gas (LPG). People are capitalising on this to flood the market with imported gas cylinders and we will put a stop to it. From the administrative point of view, we have a system in the Ministry of Petroleum Resources that ensures that things are against Nigerian content laws are stopped.”

    He said the government has outlined processes that would lead to the banning.  He said:  “A public notice to discourage the importation of gas cylinders is coming this week. Through this, importers would know the implications of engaging in the business. We are going to let them know that they are violating the local content laws and that they are responsible for some problems in the sub-sector. These are warning systems we develop to encourage attitudinal change.  Whenever we realise that people continue to import the product, we would apply sanctions.

    “Soon, Nigerians would see the impact of the policy formulated to facilitate the revival of the gas cylinders plants. The policy would bring about attitudinal change among importers of gas cylinders and importers that are amenable to change would stop the business, while the erring ones would face sanctions.”

    He said the government is promoting local content development through its policies and programmes for growth. ‘’Apart from establishing the Nigerian Content Development Monitoring Board, the government is pushing for the development of local initiatives. One of these is the decision to revive the gas cylinders manufacturing companies to discourage importation of the product,” he added.

    Nwapa said a committee had been set up to implement the policy and further ensure that indigenous cylinders were used. He said the initiative, among others, would force importers of gas cylinders out of business, create jobs, and improve socio-economic activities.

    Nwapa said the oil and gas industry is setting the pace in the area of local content use, adding that the issue is  affecting the economy.

    “Today, the telecoms and power sectors are working seriously to adapt the local content practices that have worked in oil and gas industry,” he said.

  • Oil rigs idle over theft

    Oil rigs idle over theft

    Many oil rigs in Nigeria are not operating optimally due to crude oil theft, pipeline vandalism and other malpractices, the President, International Association of Drilling Contractors (IADC) Nigerian Chapter, Mr. Sola Falodun, has said.

    Falodun said many of the 42 oil rigs are not being used properly, due to these challenges, lamenting that recouping investments made on rigs have been a difficult issue to their owners in recent times.

    He said: “Oil rigs are multi-million dollar assets, which their owners need to use often to make profits. However, that has not been the case in Nigeria where many of the oil rigs idle because there is no job for them.’’

    Falodun said the passage of the Nigerian Content Development Monitoring Board (NCDMB) would improve local participation in the oil and gas sector. According to him, the issue would make indigenous oil companies play better, and record good profit.

    He said: “With the passage of the Act, drillers and other operators in the sector would get more jobs. They would finance big-ticket transactions, hitherto the preserve of the International Oil Companies (IOCs). The divestment of shares by the IOCs and the subsequent interest shown by independents or local operators to buy into their assets is a good omen to the industry.”

    We hope the trend will continue in the sector.”

    Falodun said the passage of the Petroleum Industry Bill (PIB) is going to revolutionised the industry because operators would adopt and adapt to new technologies and practices.

  • Fed Govt lauds Nigerian Content achievements

    Fed Govt lauds Nigerian Content achievements

    The Federal Government has commended the achievements of the Nigerian Content Development and Monitoring Board (NCDMB) in its four years of existence, describing the agency as a major contributor to the transformation agenda of the President Goodluck Jonathan’s administration.

    The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, gave the commendation while fielding questions from reporters during her visit to the headquarters of the agency in Yenagoa, Bayelsa State.

    She said: “We are all extremely pleased at the federal level with the various achievements this board has recorded within this period of time. It is quite clear from our various movements, particularly when we go to international fora and see the number of Nigerians that are now exhibiting the services they deliver to the industry. It is progressing robustly every year and going from strength to strength. Within Nigeria, the success of Nigerian Content is incredible.”

    She also underscored the adoption of the Nigerian Content philosophy by other sectors of the economy, such as the Ministry of Communications Technology and  that of Power as further proof that the implementation of the Nigerian Content Act has been effective.

    She said: “The fact that Nigerian Content policies are about to be deployed in various parts of the economy and ministries as well want to copy and learn from the Ministry of Petroleum is one of the things we can be actually proud of.  It is one of the strengths of the oil and gas sector in the President Jonathan’s administration and we are very pleased with it.”

    On her expectation for the future, Alison-Madueke expressed confidence that Nigerian Content implementation will “lend itself in a critical way to the growth of the nation’s economy and development of the citizenry in terms of knowledge, capacity building and employment generation.”

    Speaking earlier at the Bayelsa State Investment and Economic Forum (BSIEF), the Minister charged Nigerians, particularly indigenes of the state to take advantage of the Nigerian Oil and Gas Industry Content Development Act and the fact that NCDMB is located in Yenagoa to play key roles in the oil and gas industry.

     

     

     

  • NCDMB plans construction of nine industrial parks in Niger Delta

    As part of efforts to boost local capacity, the Federal Government said it has concluded arrangement to build nine industrial parks in the Niger Delta states to enhance harnessing of the abundant hydrocarbon resources in the region and for the overall development of the economy.

    The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Ernest Nwapa, made the statement at the 10th year anniversary and thanksgiving ceremony of Divcon Group of Companies, an oil service firm, held at Ota, Ogun State.

    Nwapa who was represented by the Head, Marginal Oil Development, NCDMB, Mr. Rotimi Olagbaye, said it will locate one industrial park in  each  of the oil producing states in the Niger Delta region to involve Nigerians in the sourcing of equipment and inputs used in oil and gas production.

    The industrial parks, he said, will apart from providing inputs to harness oil and gas, also create jobs for Nigerians.

    The Group Managing Director of Divcon Nigeria Limited, Andy Ikhide, thanked God for sustaining the company and provided dedicated staff to run its affairs for the past 10 years without much hitches.

    He said that for Nigeria to become great and truly become the giant of Africa, Nigerians should change their mindsets, do the right things at the right time adding that technology transfer is a fallacy as no nation would willingly transfer technology to the nations seeking it at no cost.

    He said: “If Nigeria wants to transform to be the giant of Africa, Nigerians must change their mindsets, change the way they think, think positively and do the right things. Nigerians are one of the best brains in the world; they are making exploits in the United States, Europe and other parts of the world. We have created enabling environment for these brains to come home and assist in the development of our economy.”

    He explained that technology advancement is either stolen or acquired by nations seeking it. He cited Japan that was devastated after the second world but picked up again through research and development and has transformed as one of the leading world’s technology advanced countries.

    Ikhide urged Nigerian leaders to take a  cue from Japanese model by embarking on the application of research and development, change curriculum model in schools, resolve security challenges because no country can make progress in regime of insecurity.

  • Board, PTDF urged to build operators’ capacity

    Worried by weak capacity building mechanism and the attendant jobs’ loss among indigenous oil and gas operators, stakeholders have advised the Nigerian Content Development Monitoring Board(NCDMB) and Petroleum Trust Development Fund (PTDF) to collaborate to train players in the industry.

    The stakeholders said the level of participation by Nigerian firms in the sector, particularly in contract service retention, would be in excess of $10 billion per year, if the right capacity building programmes were in place.

    The stakeholders, amongst them, the President, International of Association Energy Economics (IAEE) Nigerian Chapter, Prof Adeola Akinnisiju and President, International Association of Drilling Contractors (IADC), Mr Sola Falodun, said billions of dollars can be generated from oil and gas services.

    Akinnisiju, said the Board is into advocacy through which it is seeking local participation in oil and gas, while PTDF empowers stakeholders to achieve results. When they work together, they would be able to compliment each other well. This would build the capacity of local operators and further give them the opportunity to compete with their foreign counterparts, he said.

    ‘’ There are huge opportunities in the sector, but that can only translate to capital gains for local operators when they equip themselves. With the right training in place, local companies should be able to handle big-ticket jobs hitherto given to foreign companies.’’

    Also, Falodun said the drive by the Nigerian Content Development Monitoring Board will attract investments to the petroleum industry if it is sustained. He said capacity building is the gateway to success in the industry, adding that the association is planning to organise skills acquisition programmes for drilling operators for growth.

  • ‘How local content is aiding foreign, direct investment’

    ‘How local content is aiding foreign, direct investment’

    The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Ernest Nwapa, has said the country is creating a new set of indigenous operators who will soon attract Foreign Direct Investment (FDI) worth billions of dollars.

    Speaking at the launch of Future Concerns Safety Office in Lagos, Nwapa said the industry was experiencing a shift from small to bigger ticket transactions, going by the projects executed by indigenous operators.

    He said were operators forging alliances with bigger firms abroad to finance big ticket transactions adding that the partnership between MSA, a United States–based manufacturer and distributor of safety equipment and Future Concerns Safety Limited, would impact on the local content policy.

    He said: “Without doubt, the local content policy of the government is yielding fruits. Gone are the days when Nigerians celebrated the award of fat contracts in the industry as the only dividend of local content.

    “We have gone beyond that. Nigerian entrepreneurs are now taking on bigger roles by attracting Foreign Direct Investment (FDI) and forging alliances with global brands with the purpose of technology transfer and capacity development that could aid the progress of the local content policy.

    “I congratulate Future Concerns on this milestone and urge you to move to the next level which is the sustenance phase. Maintain the standards that swayed the decision of MSA by delivering consistently quality service to your clients.”

    Nwapa said the oil and gas industry is recording appreciable progress due to the improved participation of indigenous operators like Future Concerns, who have taken the bulls by the horns through their substantial investment in the industry.

    Nwapa said local operators have taking advantage of the enabling law to improve their investments, adding that their efforts have validated the position of the Federal Government to improve local participation in oil and gas industry.
    The company’s the Chief Executive officer, Tony Oguike, said a climate that would allow local companies to operate well is emerging, adding that a lot of synergies is taking place in the industry.
    Oguike said local firms that want to play well must have enduring business propositions, arguing that foreign-owned companies are looking for those that can compliment their efforts.
    This company came out with what he describes as ‘’ 3&T business propositions, noting the idea culminated in the partnership forged with MSA to provide a centre that would help in providing safety services in the petroleum and allied sectors.
    Oguike said: “The 3 S&T propositions include sales of MSA equipment; spares locally available; service and maintenance made locally, and training with global certification locally. That is what MSA indentified and nurtured a few years ago, and for the first time gave us the rights to build an independent service and maintenance centre in West Africa.”
    Mr. Colin Oliver, Managing Director, Sub-Saharan Africa, MSA, hailed the enterprising spirit of Oguike and the professionalism and integrity of Future Concerns. He noted that the relationship between the two companies has been further strengthened by the core values of quality service, integrity and responsiveness that Future Concerns has displayed all through the years of the relationship.
    He said: “MSA is no doubt the biggest brand globally in safety equipment manufacturing and maintenance. We have provided solutions to various clients across the world. The African market, particularly Nigeria, is very huge and we are excited to be a major player in the industry. Our partnership with Future Concerns so far has enabled us to provide better tailor-made solutions and services to our clients.”