NCDMB Calls for Local Patronage of $5bn Bonga North, $550m Ubeta Projects
The Nigerian Content Development and Monitoring Board (NCDMB) has reiterated its call for the patronage of indigenous oil and gas facilities during the award and execution of projects such as the Shell”s $5 billion Bonga North deepwater project and TotalEnergies’ $550 million Ubeta gas project.
Executive Secretary of NCDMB, Mr. Felix Ogbe, made the call in Lagos, when he and his team visited the facilities of Samsung Heavy Industries Nigeria (SHIN), and Africoat Nigeria Limited, a pipe coating plant, located at Takwa Bay, Lagos.
Ogbe pointed out that patronising local oil and gas service firms and facilities was key to promoting local competences and capabilities in the country’s petroleum industry as prescribed by the Local Content Act.
The visit was consistent with Ogbe’s determination to assess oil and gas facilities across the country as a prelude for their participation in ongoing and upcoming major oil industry projects.
NCDMB played key roles in accelerating approvals for the new projects, which included Ubeta gas development project, currently being developed by TotalEnergies, and Bonga North deepwater project, for which Shell Nigeria Exploration and Production Company Limited (SNEPCo) had announced the final investment decision (FID) in December 2024.
Similarly, the executive secretary informed that other high-profile upstream oil and gas projects were progressing towards achieving FIDs.
According to him, Zabazaba deep-water project was being readied by ENI and Shell, just as preparations for the HI and HA gas projects are being made by (SNEPCo).
The NCDMB’s boss conveyed the agency’s determination to continue partnering with thd international oil companies (IOCs) to develop new projects, and to ensure they execute key scopes of those projects using local firms with proven capabilities, as mandated by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
He asserted that NCDMB’s mandate and activities were contributing to actualising President Bola Tinubu’s economic agenda, particularly in catalysing new oil and gas projects, job creation and economic revitalisation.
At the Samsung Heavy Industries, the Managing Director, Mr. Jin Lee, highlighted the firm’s in-country capacities, which include heavy fabrication and Floating Production, Storage and Offloading (FPSO) integration quayside.
He reiterated the company’s experience in executing major oil and gas projects, notably the fabrication and integration of six modules for the TotalEnergies’ Egina FPSO in 2018.
The Business Development Manager, SHIN, Mr. David Bruce Inglis, said the company trains welders in different specialisation and had trained 560 welders during the execution of the Egina project, including women.
He said the facility employed over 1000 persons at the peak of the Egina project, but the capacity was now scaled down to 131, owing to lack of projects.
The company, he said, has a database of past employees and would re-engage some of them if they win a new major project.
He also hinted that the company planned to manufacture oil and gas components and equipment in Nigeria for export to other parts of the world.
He confirmed that the SHIN facility had adequate installed capacity and capabilities for export, and Nigeria enjoys a vintage geographical location for such business opportunities.
At Africoat, the NCDMB boss challenged the firm’s management to resolve the protracted dispute they have with their bankers, as well as their landlord, Lagos Deep Offshore Logistics (LADOL), which stopped the plant from operating since its completion in 2017.
He suggested that a peaceful settlement would allow for the plant to be rehabilitated before it could work for the industry, and benefit the investors, and create jobs for the economy.
The Managing Director of Africoat, Mr. Frank Twynam, confirmed that efforts were ongoing to resolve the impasse.
He noted that $42 million was invested to develop the corrosion and concrete weight coating plant, hinting that a robust plan was already in place to restore the facility once the dispute is resolved.
