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Egina-UFR Project: NNPC seeks NCDMB collaboration to shorten contracting cycle

By Editor   |   15 October 2016   |   1:34 am



Following the huge success recorded by Saipem Contracting Nigerian Limited (SNCL) on the Egina Umbilicals, Flowlines, Risers (UFR), Offloading Systems and Offshore Works project, in terms of employment generation and Nigerian content development, the Nigerian National Petroleum Corporation (NNPC) has called for more support and collaboration from the Nigeria Content Development and Monitoring Board (NCDMB) to shorten contracting cycle to six months.

Speaking during the Egina-UFR Load Out ceremony at Saipem Yard in Rumuolumeni, Rivers State, the Group Managing Director of NNPC, Dr. Maikanti Baru, said the call was necessitated by the need to reduce cost and create more opportunities for similar feats achieved by Saipem on the project.

Baru said: “Several initiatives have been introduced by NNPC management to reduce the tender cycle time. However, more interventions are still required to achieve world standards.

“We are continually refining our systems and processes to shorten our contracting cycle to six months from prequalification to award stage, as experience has shown that long tendering process is a major cost driver in the industry.”

He commended Saipem for doing majority of the engineering and fabrication work on the project, particularly the fabrication aspect that was carried out at its yard.

“Millions of man-hours were expended on this project, new local vendors and sub-contractors emerged, about 75 young engineers have been trained, artisanal skills have been improved and new skills sets have been developed by way of the Egina UFR project,” Baru noted, stressing that the feat would be replicated on a larger scale in similar new projects expected to come on stream in the future.

The project was awarded to Saipem in 2013 and located about 20 kilometres from producing Akpo Field, which lies within the Oil Mining Lease (OML) 130. Baru recalled that Saipem also handled the UFR modules for both Usan and Akpo Fields, which are currently in production.

He added: “I have full confidence that the lessons learnt in the execution of both Usan and Akpo UFR and recent technological advances have been incorporated in the Egina UFR.

“Your relentless and commendable effort at EPC-type projects is evidence of what we are celebrating today.”Earlier in his welcome address, Managing Director of Saipem Contracting Nigeria Limited (SCNL), Guido D’Aloisio, said he was pleased to see that after so much efforts put into this project, “we are at this point (the load out ceremony).”

In addition, he was happy that the company was also celebrating 14-million man-hours without Lost Time Injury (LTI), noting: “It is very important to us that we do our job and do it safely.”

He said Egina UFR is truly Nigerian project done in Nigeria, as the fabrication was done in Nigeria, by Nigerians and for Nigerians. “I am proud of this project,” describing it as the largest oil and gas project ongoing in Nigeria and a welcome contribution to the Nigerian economy.

He said: “Egina UFR project is a project of record setting, together with all our contractors, we say it is a project with the highest Nigerian content, technology transfer and capacity development involving the fabrication of over 60,000 tonnes of equipment.”

In his remarks, a member of the NCDMB, Daziba Patrick Obah, expressed delight with the level and quality of job done, saying they were made possible by policies fashioned by the NCDMB.

Obah told Saipem: “This project is a very good story for NCDMB and Nigeria. We shall remember what you have done today and we shall work together.”

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