Local content board plans to protect local oil firms

PLANS are underway by the Nigerian Content Development and Monitoring Board (NCDMB) to ensure that low crude oil prices do not affect the implementation of Nigerian local content development law.

The Executive Secretary of the Board, Denzil Kentebe, who disclosed this recently at the load out and sail away of the Sonam non-associated gas wellhead platform (NWP) topside at the Nigerdock yard in Snake Island, Lagos, added that the Board has initiated steps to fashion out strategies that will protect local capacities that had been developed by oil and gas service companies over the past five years of implementing the Nigerian Content Act.

The topside is for the Chevron/Nigerian National Petroleum Corporation’s Domestic Supply Obligation, DSO, gas project.

While celebrating the feat recorded by Nigerdock in fabricating the topside which is the largest ever made in Nigeria, weighing about 2,700 tons, the Executive Secretary harped on the need to ensure that such achievements are sustained and the gains recorded over the years are not eroded as a result of the crash in oil prices and cut back on projects.

He said: “While we celebrate these feats, we are mindful of the current economic environment, lull in business and threat to these capacities.”

Kentebe explained that the new strategies would require all stakeholders of the industry to work together to see that new projects come out to sustain jobs and capacity in Nigerian facilities.

He added that the Federal Government was already taking steps to bring all stakeholders to the table to work out solutions to the challenge.

The Executive Secretary hailed the commitment of Nigerdock to the development of Nigerian Content, recalling that the company had recorded many firsts on several projects, including modules fabricated on USAN and Ofon for Total, Abang and Itut topsides for ExxonMobil and Meren and Sonam topsides for Chevron.

He added: “The capacity has not only been sustained but increased over time. Thousands of Nigerians have continued to be employed and trained. Nigerian suppliers have also been built up on the back of these projects and activities.”

He cited Wellmann Nigeria Limited, which has developed the capacity to load out heavy fabricated modules by investing in the acquisition and operation of Self Propelled Modular Trailers (SPMTs).