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NLNG Train 7 Project: Wabote calls for participation of local companies

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The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, in support of President Muhammadu Buhari administration’s drive for the expansion of local content involvement in infrastructure projects in Nigeria, has appealed for the participation of local companies in the implementation of NLNG Train 7 Project.

Chief Executive Officer (CEO), Sparkwest Steel Industries Limited, Niyi Oyedele (left); Saipem Contracting Nigeria, T7 Project Director, Nicholson Stuart James; Executive Secretary and CEO, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote; Chairman, Sparkwest Steel Industries, Ibrahim Usman; Tunji Omole; and Nigerian Liquified Natural Gas Company (NLNG) T7 Project Director, Ali Uwais, at Sparkwest Steel Industries Limited factory tour in Sagamu Ogun State, on Monday recently.


Wabote, who made the disclosure recently during a facility tour of the fabrication and galvanising facility of Sparkwest Steel industries in Sagamu, Ogun State, stated that there was a need for the government to encourage local investors to do more through various incentives.

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Wabote who was on the facility tour with his executive management, the executive director projects of Saipem, the top management team of Saipem, senior executives of Daewoo, Engr. Uwais, the Project Director of NLNG Train 7 said: “With what I have seen if they are encouraged, I think they could do more. We must also understand that this project is time and commitment-driven, so we will try as much as possible to balance those things and to see what is possible.”

The NCDMB boss lauded the company for its efforts in driving investment and employment generation across the sector, stating that with more support from government and industry players, the company would employ more Nigerians.

Continuing, he said: “The Company is already employing people. It is not a closed shop. We came to check their capacity and I am sure if a lot more work is given to them, a lot more Nigerians will be employed. They have done a lot of investments. Their expertise has always been in the telecommunications and power sector. Now we want to migrate into the oil and gas sector, which is technically very challenging. So it is how to encourage them to make that transition. That is why this visit is vital.”

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It will be recalled that the Nigerian Liquified Natural Gas Company (NLNG) Train 7 Project was awarded to SCD Consortium led by SAIPEM Contracting Company.

SAIPEM Contracting Company afterward signed an agreement with Sparkwest Steel Industry under the watchful eye of the NCDMB as the Local Content Fabrication and Galvanizing sub-contractor for the construction of the $7 billion NLNG Train 7 Project.

In his remarks, the Managing Director, Sparkwest Steel Industries, Niyi Oyedele, stated that in the drive for expanding the participation of qualified Nigerian companies in the construction and delivery of the NLNG train 7 the NCMDB spearheaded a fact-finding mission to establish the fabrication and galvanizing capacity of Sparkwest Steel and the extent of the participation that can be safely awarded to the company as a subcontractor in the landmark NLNG train 7 project.

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“The team from Sparkwest did a comprehensive presentation to the visitors displaying their array of Computer numeric control machines from Ficep Italy, their galvanizing facility, welding facility and a full presentation on their track record of Steel fabrication delivery for the power, telecoms and construction industry and their plan to expand their oil and gas steel fabrication delivery programme,” Oyedele said

According to him, “What we are looking forward to is that our participation in the NLNG Train 7 should be increased significantly. However, we have a lot of work to do. We are in collaboration with them and I am sure we will get there.

“Government should be commended for how sensitive they are and the level of importance they attach to local companies’ participation in the oil and gas industry. With this type of commitment and zeal of the Executive Secretary of the NCMDB and the top management of NLNG, I am sure Nigerian contractors will enjoy greater participation in the oil and gas industry.”

“On employment level, we have about 250 direct and 100 indirect employees. But if we get the right participation in the NLNG Train 7 project, we can easily double that number.”

A top official from Saipem said he was impressed with the level of investments in world-class CNC machines at the factory and informed the visiting team that Saipem has already invested a lot in supporting Sparkwest to improve their processes and quality control and management system and will definitely ensure that Sparkwest is awarded as many jobs in the NLNG train 7 project that they can efficiently deliver.

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