Stories by Ediri Ejoh
The Nigerian Content Development and Monitoring Board, NCDMB and the Nigeria LNG Limited, NLNG, on Friday signed the Nigerian Content Plan, NCP for the NLNG Train 7 project, taking a big step towards kick- starting the huge gas project that would create a flurry of activities in the oil and gas sector and contribute immensely to the nation’s economy.
The Executive Secretary, NCDMB, Engr. Simbi Kesiye Wabote and the Managing Director of NLNG, Engr. Tony Attah signed the NCP in Abuja at an event witnessed by senior personnel of the Nigerian National Petroleum Corporation, NNPC, Shell, Total and ENI – shareholders of the NLNG. The Train 7 project is expected to expand NLNG’s production capacity by 35 per cent from 22 million tonnes per annum, MTPA to 30 MTPA. At peak construction, the Train 7 project is projected to provide direct, indirect and induced employment for over 10,000 persons.
The Executive Secretary emphasised at the signing ceremony that Train 7, like other forthcoming major projects in the oil and gas sector, must leave a legacy facility, just like Total’s Egina deep-water, which catalysed the development of an FPSO integration facility in Lagos.
He explained that the expected job explosion from Train 7 is banked on the Nigerian Content Plan, which provides for 100 per cent engineering of all non-cryogenic areas in-country. The total in-country engineering man hours is set at 55 per cent, which exceeds the minimum level stipulated in the NOGICD Act, in line with the Board’s resolve to push beyond the boundary of limitations, he added.
Wabote revealed that the Train-7 scope would deliver 100 per cent in-country fabrication of the Condensate Stabilisation Unit, pipe racks, flare system, and non-cryogenic vessels. Site civil works on roads, piling and jetties will keep local businesses occupied.
He added: “It will also provide great opportunities for utilisation of local goods and services in addition to enhancing and developing new capacities and capabilities for the local supply chain. There will be 100 per cent local procurement of all LV cables and HV cables, all non-cryogenic valves, protective coatings, and all sacrifice anodes. Seventy per cent of all non-cryogenic pumps and control valves will be assembled in-country.”
Other spin-off opportunities would include logistics, equipment leasing, insurance, hotels, office supplies, aviation and haulage.
The Executive Secretary pointed out that the increased number of NLNG Trains would also provide huge business opportunities for local businesses to build capabilities in the maintenance of LNG plants, especially in the area of cryogenics.
The project would also catalyse other upstream gas supply projects required to keep the LNG train busy and make stranded gas fields in the shallow and deep offshore in the area economical.
In his comments, the Managing Director of NLNG confirmed that the full value network of the Train 7 project was about $12bn, including the net cost of the project, estimated in the region of $4bn to $5 billion and a similar additional spend at its operational base in Bonny, Rivers State.
“It is also about the upstream development which is the real gas that will come to us. That also is a huge investment of $5 to $6 billion. So, potentially, the full value network is almost $12 billion.”
He underscored that the Nigerian Content Plan for Train 7 contained clear and robust Local Content provisions that are significantly higher than the previous NLNG projects.
“NCDMB and NLNG are fully aligned to collaborate during the operationalisation of the plan. This synergy will ensure that value added opportunities for Nigeria are indeed maximized and the Train 7 project is delivered to meet international standards of quality and safety.”
He also stated that NLNG shareholders are primed to take the Final Investment Decision, FID for the project before the end of Quarter 4 2019.
He further highlighted that the expected increase in the production capacity of LNG “will reinforce the company’s comparative and competitive advantage in the global LNG market while also increasing the country’s revenue and foreign investment profile.
This is in addition to moving the nation’s economy from being oil-based to becoming a gas-based economy to be reckoned with globally. We are here to enable gas. Nigeria has ridden on the back of oil for more than 50 years; it is now time to fly on the wings of gas.”
… as NSE confers fellowship on Wabote, Ikuru
The Nigerian Society of Engineers (NSE) on Friday conferred the rank of fellowship on the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote, for his outstanding contributions to the engineering profession and Local Content Development in the oil and gas industry.
Wabote was decorated among 38 other eminent engineers, including the General Manager Capacity Building Division of the NCDMB, Dr. Ama Ikuru, at the 10th fellowship conferment lecture and ceremony held in Abuja on Friday.
The President of the NSE, Engr. Adekunle Mokuolu and the Chairman of the Board Fellows, Engr. Felix Atume, decorated the new fellows.
Thereafter, Wabote was nominated to deliver the vote of thanks on behalf of the conferees and he thanked the NSE Council for bestowing the honour of fellowship on them.
He noted that all the nominees were senior practitioners of the profession, who had made impressive contributions to the growth of engineering. He also promised that new fellows would continue to fly the flag of the society and uphold the responsibilities expected of them.