Nigeria sets benchmark for new oil industry projects

An oil vessel used to illustrate the story An oil vessel used to illustrate the story
An oil vessel used to illustrate the story

International oil companies and promoters of new deep-water projects in Nigeria must henceforth deliver Nigerian content milestones that would exceed in-country integration of floating, production, storage and offloading, FPSO, platforms by Total Nigeria’s Egina Deepwater project.

The Executive Secretary, Nigerian Content Development and Monitoring Board, NCDMB, Simbi Wabote, said the Egina project has come to represent the benchmark other operators in the industry would have to beat in projects execution.

Mr. Wambote said the project, which would be integrated at the LADOL Free Trade Zone in Lagos, has become the standard bearer for Nigerian content on deep-water projects.

The Executive Secretary spoke in Lagos after inspecting facilities of Samsung Heavy Industries, the main contractor for the engineering, procurement, construction and installation contract of the FPSO scope on the Egina project.

In-country integration of the FPSO and fabrication of six modules of the vessel, Mr. Wambote said, created 5,000 direct jobs and 5,000 indirect jobs so far.

Increased domiciliation of future FPSO projects through the fabrication of more modules, he said, would create additional jobs, estimated to reach 30,000.

He said the Board would continue to implement the Nigerian Content Act, saying “new projects must look at doing FPSO integration and more and add something to the achievements so far.

“Six modules of the Egina FPSO were fabricated in-country across some yards whereas 12 modules were welded at Samsung’s base, Geoje, South Korea, affirming that more modules must be fabricated locally for next FPSO.

Mr. Wabote, who expressed delight with the level of investment and the utilisation of local workforce in the execution of contracts, described the project as an example of possibilities.

He assuring that the board would continue to work with industry interest groups to develop new projects and domicile more work in-country.

In his presentation, the Chief Operating Officer, SHI Nigeria, Frank Ejizu, explained that the quay side was ready to receive the FPSO, noting that the tracks have been certified.

Dwelling on the workforce, Mr. Ejizu said that 364 Nigerian welders have been qualified and awarded international certifications, that would enable them work anywhere in the world.

Earlier, the NCDMB boss had visited the facilities of Dover Engineering, JC International and Thompson and Grace Limited, all located in Port Harcourt, Rivers State.

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

Information gathered from the visits, he explained, would be used during tenders and in planning for capacity development.

He also promised to enlighten international oil companies and project promoters on existing in-country capacities and ensure their utilization during projects.

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

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

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