Nigeria’s success story of local content policy
The Nigerian oil and gas industry has recorded a significant milestone in the implementation of the Nigerian Content Policy in the areas of local fabrication of oil platforms.
The latest is the successful completion of the largest topside module, fabricated and fitted at Nigerdock’s Fabrication Yard on Snake Island, Apapa Lagos.
The exercise was part of the Domestic Supply Obligation (DSO)-MEREN Gas Gathering Compression Platform and SONAM Non-associated Gas Wellhead Platform sponsored by Chevron and the Nigerian National Petroleum Corporation (NNPC).
The Sonam project covers approximately 4,600 metric tonnes of fabrication work, including the Topsides, Jackets, Piles and Bridge – at the Nigerdock fabrication yard.
Sonam is expected to deliver a combined 420 million cubit feet per day of natural gas to Chevron’s Excravos Gas project, which will provide feedstock for power generation, which is a a major demand for Nigeria’s power sector.
Speaking at the load out and sail away ceremony in Lagos, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Denzil Kentebe, described the feat as another milestone especially for Nigerian Content, saying that the country has continued to celebrate many firsts on several projects such as modules fabricated and loaded out on USAN and Ofon for Total, Abang and Itut topsides for Exxonmobil and Meren and Sonam topsides for Chevron, among others.
He said: “It is pleasing to see that 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/ activities”.
Chairman of Nigerdock and the Jagal Group, Anwar Jamarkani, said that a total of 3,268,537 man-hours were expended on the project, which has an overall tonnage of 3,500 tonnes.
He said: “All of these structures are required to deliver a combined cubic feet per day of natural gas to Chevron’s Excravos Gas Project which provides feedstock for power generation, a major demand for Nigeria’s power sector.”
He added that the project will significantly eliminate gas flaring from the project sponsor’s assets in fulfillment of government’s gas flaring policy. According to him, the project will further attract gas investment opportunities, thereby boosting present administration’s effort to diversify the economy from crude oil proceeds.
“We are truly humbled to play a part in such a landmark achievements which will no doubt have a transformative effect on our country. However, we believe we can do much more and raise the bar,” he said.
Also speaking, the Chairman and Managing Director of Chevron Nigeria Limited, Clay Neff, said that the project will enable the delivery of close to 300 millions standard cubic feet of gas to Escravos Gas Plant, which will enable delivery of additional gas to the domestic market.
This, he said, will in turn help to significantly boost the nation’s economy.He said that achievement signifies a major milestone since it marks the end of the fabrication phase and the start of the next phase of the project that is focused on the offshore installation of the fabricated parts.
In addition to the impressive safety record, the Sonam NAG Well Platform projects has and is still contributing immensely to the development and sustenance of the Nigerian content.”