$10million threading, valve assembly project to aid import substitution
In efforts to deepen local content development in Nigeria, and conserve foreign exchange (forex), a $10million threading and valve assembly facility is being set up at the Lekki Free Trade Zone (LFTZ), by Bell Oil and Gas.
The integrated facility would provide a range of piping and tubular services for the oil and gas industry. It would also have a valve assembling plant, maintenance workshop, testing plant, a composite fabrication facility and also serve as a befitting fabrication yard in general.
The facility, which was unveiled at the LFTZ in Lagos, and witnessed by officials of Nigeria Content Development and Monitoring Board (NCDMB), is expected to play a very critical role by providing these services for the production of oil and gas.
Some of these services are currently imported into the country at huge cost to the economy. According to the Executive Secretary, NCDMB, Simbi Wabote, who was represented by the Director, Content and Evaluation at NCDMB, Tunde Adelana, as Nigeria celebrates her 60th year of independence, projects like this would terminate the country’s dependence on massive importation of threaded pipes so that she can derive the attendance economic benefits.
He said the establishment of a facility that would make it possible to assemble Threaded OCTG pipes and valves in-country is a welcome addition to the list of existing assembly plants in Nigeria, as it is set to meet the key energy needs in the oil and gas sector.
“Nigeria deserves more of such initiatives in the oil and gas sector,” he said.
Speaking, Managing Director and Chief Executive of Bell Oil and Gas, Kayode Thomas, said the assembly facility, when completed, is expected to reduce the cost of purchasing threaded pipes and valves, which are mostly imported into the country ,and create a reasonable level of employment opportunities for Nigerians.
He said: “The essence of the event was to break the ground and lay the first stones for what is essentially going to be a state of the art multimillion-dollar integrated facility that will provide a range of piping and tubular services for the oil and gas industry. It would also have a valve assembling, maintenance workshop, testing plant, a composite fabrication facility and also serve as a befitting fabrication yard in general.”
He said Bell Oil and Gas is moving further into the value chain ladder from being a supplier and an installer into actually doing something more enduring and adding more value to the economy.
He explained that this is in full support of its vision to be a reference point in the industry as well as demonstrate its commitment to real and true local capacity development.
He said the company has been very active in the valve business, as it supplies valves to a number of international oil companies, and also represents a number of internationally-recognised original equipment manufacturers across the globe.
Explaining further on how the plants would function, he said the valve plant would enable Bell Oil and Gas to assemble valves locally, maintaining and testing it locally with the state-of-the-art equipment, while the composite pipe fabrication would make it possible for it to actually pre fabricate the pipes. He said the facility would be unique and spectacular as it is going to be the first in Lagos area.