NCDMB organizes workshop on contracting processes

The Nigerian Content Development and Monitoring Board (NCDMB) has organized a one-day sensitization workshop on Vendor Development Programme, with a view to enlightening vendors operating in the oil and gas industry on how to register and bid for contracts in the industry as well as encourage compliance.

In his address at the workshop held in Port Harcourt, Rivers State recently, the General Manager, Capacity Building Division NCDMB, Dr. Ama Ikuru, highlighted the need to create awareness on how Nigerian Oil and Gas contractors and service providers should register, participate and execute contracts in the industry. He noted that the targets set in schedule A of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 and Nigerian Content 10-year strategic roadmap is the attainment of 70 percent in-country value retention by 2027. For this target to be met, he said, there was need for capable and informed vendors that understand the tendering processes in the industry. As part of the conference, several oil and gas operators made presentations enumerating guidelines for Vendor Registration and Qualifications, Contracting Processes, Procurement Processes and 2020 Opportunities. The operators include Shell, Nigerian Agip Oil Company, Chevron, Nigeria LNG, Seplat, Addax and Amni.

In his closing remarks, Dr. Ikuru thanked all the Operators for sharing and interacting with vendors on the processes and opportunities in the industry. He also encouraged vendors to take advantage of the information provided by the operators.

NCDMB Extends Nigerian Content Sensitization to Oyo, Kwara, Osun States

Majorwaves Energy Report FEBRUARY 2020, Vol 3 No 2 11 T h e Ni g e r i a n C o n t e n t Development and Monitoring Board has commenced the sensitization of the residents in non-oil producing states on the benefits and impacts of the Nigerian Oil and Gas Industry Content Development Act 2010. The enlightenment workshop which has been conducted in the various oil producing states since the establishment of the Board a decade ago has now been extended to the other states across the country, beginning with Oyo, Kwara and Osun States. The Executive Secretary, NCDMB, Engr. Simbi Wabote represented by the General Manager, Corporate Communications and Zonal Coordination, Dr. Ginah O. Ginah stated at the workshop in Ibadan that the Board started to extend the message of the NOGICD Act to other states in the federation in order to improve the productivity of Nigerians and increase the participation of more Nigerians in the oil and gas industry. Ginah explained that the Nigerian Content Act mandates the Board to organise workshops to enlighten critical stakeholders, integrate indigenes into the oil and gas industry activities and empower youths with skills required in the sector. He clarified that the NOGICD Act was instituted for all Nigerians and was not limited to indigenes or residents of the Niger Deltans alone. In his words: “the Act is Nigerian Content not Niger Delta Content but because we are located in the oil producing region, we needed to start from our base before moving out. We are now going out to the non-Niger Delta areas and this will be a continuous exercise.” He said that the main objective of the workshop is to enlighten the people on how they can effectively participate in the oil and gas industry. Fielding questions from participants during the workshop, he reiterated that Nigerian Content is about domiciliation of industry work incountry and development of local capacity with associated benefits. Ginah charged participants to get familiar with the Board’s NOGICJQS database and upload their bio data onto the portal, so they benefit from the various Human Capacity Development Initiatives of the Board. Company, Chevron, Nigeria LNG, Seplat, Addax and Amni. In his closing remarks, Dr. Ikuru thanked all the Operators for sharing and interacting with vendors on the processes and opportunities in the industry. He also encouraged vendors to take advantage of the information provided by the operators.

NCDMB, Rungas Start Cylinder Factory in Polaku

Th e N i g e r i a n C o n t e n t Development and Monitoring Board (NCDMB) announced recently that it has partnered Rungas Prime Industries Limited in the establishment of a 400,000 per annum Type 3 LPG Composite Cylinder Manufacturing Plant in Polaku, Bayelsa State. Making the announcement in Yenagoa during a town hall meeting with chiefs and representatives of the Polaku Community, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote confirmed that Rungas had been allocated two hectares of land at Polaku for the establishment of the factory.

NCDMB had purchased 10.6 hectares of land at Polaku in June 2013 for the purpose of establishing a pipemill but discussions with Yulong Pipemill of China and other investors did not yield expected results, leaving the land to lie fallow for almost seven years. He stated that groundbreaking ceremony for the cooking gas cylinders manufacturing facility will be performed in a few weeks by the Minister of State for Petroleum Resources, Chief Timipre Sylva, adding that NCDMB is keen for the project to start immediately because it will create employment opportunities for youths from the state and environs. He indicated that another strong motivation for the facility is the direct linkage to one the Minister’s operational priorities, which is the penetration and utilization of liquefied petroleum (cooking) gas by Nigerians.

The Executive Secretary expressed hope that the project will generate up to 200 direct and indirect jobs during construction phase and about 350 direct and indirect jobs during the full operations phase, in addition to other induced employment and economic activities. He also confirmed that NCDMB had allotted another hectare of the Polaku land to a gas distribution company for the construction of a Pressure Reduction and Metering Station. ”This is meant to supply gas to upcoming industries in Polaku, Gbarain, and other surrounding areas to the distribution of domestic gas for power generation and for other industrial uses.” He explained that the Board changed its strategy after experiencing long delays in getting investors for the planned pipemill. The new strategy will ensure utilization of the site and bring manufacturing outfits to the area for creation of jobs and increase in economic activities, he said. Wabote hinted that NCDMB was also in discussion with other investors to take up the remaining portions of the Polaku land, adding that “we will allocate the land to as many companies as possible for setting-up of viable businesses until the land is fully allocated.”

He maintained that NCDMB’s partnerships with investors was in line with its vision to serve as a catalyst for the industrialization of the Nigerian oil and gas industry. Identifying reasons why Yulong Pipemill did not continue with the pipemill project, the Executive Secretary said the company had concerns about security, cooperation from the host community and return on their investment, especially after the crash of crude oil prices in the international market. He noted that the company moved to Lekki Free Zone in Lagos and set up the pipemill within six months

Majorwaves Energy Report FEBRUARY 2020, Vol 3 No 2 in 2016. He charged the Polaku chiefs and leaders to support the new investment because it will place their community on the map of oil and gas manufacturing activities and provide job opportunities for their children. “Your roles should include checkmating any individual or group that wants to derail this wonderful opportunity from coming into fruition in your community,” he advised. He also promised that the Board will set up a community interface committee that will comprise of representatives of the community, the investor and NCDMB, with responsibilities to ensure community participation in the project, enhance cordial relationship and promote compliance with the Community Content elements of the project. He however warned that the Board would move the investment to another location if the Polaku community became difficult, uncooperative or unreceptive.

In their comments, leaders of the community pledged their support to the incoming investment and assured that it will not be disturbed in any way. They stated that Polaku is a peaceful community and was desirous of development. The women leaders also welcomed the project and expressed willingness to be part of the workforce during the construction stages of the gas cylinder manufacturing plant. The first Board had signed a Memorandum of Understanding (MoU) and agreement with Rungas and two other companies during the 9th Practical Nigerian Content (PNC) Workshop held in December 2019 at the NCDMB Conference Centre, Yenagoa.

NCDMB, Waltersmith to support Equatorial Guinea on Modular Refinery Development

The Nigerian Content Development a n d Moni to ri ng Boa r d (NCDMB) and Waltersmith Petroleum Oil Limited will assist Equatorial Guinea to develop modular refineries in the central African nation, so it can process some of its crude oil and derive increased value from the hydrocarbon resources. The bi-lateral cooperation was confirmed recently after the Executive Secretary of NCDMB, Engr. Simbi Wabote and Chairman Waltersmith, Mr. Abdulrazaq Isah hosted the Minister of Mines and Hydrocarbons, Equatorial Guinea, His Excellency Gabriel Mbaga Obiang Lima at the 5000 barrels a day Waltersmith modular refinery being developed at Ibigwe in Imo State, with 30 percent equity investment from the NCDMB. Commending stakeholders of the Nigerian petroleum industry for the achievements recorded so far with modular refineries, the Minister stated that his country plans to replicate the initiative, so it can stop the wholesome export of its crude oil and begin to add value to the resources. He said: “we believe that with this cooperation and experience between our country and Waltersmith and the Nigerian petroleum industry, we should be able to replicate it.” Noting that Nigeria had vast experience in the hydrocarbons industry, Lima added that Equatorial Guinea would also understudy the commercial aspects of the modular refinery project to ensure that its planned investments would be economically viable.

Majorwaves Energy Report FEBRUARY 2020, Vol 3 No 2 13 He underscored the need for knowledge and experience sharing amongst African countries, particularly in the petroleum sector, stating that “there are a lot of things we can learn from brotherly countries and in this caseNigeria. Rather than go to Europe or United States or Asia, we decided to visit our neighbour, to see what they do.” He expressed delight that a new dawn had come in the African oil industry and nations needed to start utilizing their crude oil resources more efficiently. ”We cannot continue to export crude oil. We should start processing our products and we are watching what Nigeria is doing and we want to replicate them.” In his remarks, the Executive Secretary NCDMB described the cooperation between Nigeria and Equatorial Guinea as a perfect example of the benefits of the recently signed Africa Continental Free Trade Agreement (AfCTA), which encourages African countries to trade and cooperate among themselves. He maintained that governments and businesses in Africa needed to cooperate closely and lift the continent out of its present state, rather than depending on foreign assistance and aid. Wabote highlighted the local content benefits of the Waltersmith modular refinery, noting that ”it is being built by a local company and 90 percent of the workers are Nigerians. Most of these will be replicated to create jobs and put young people out of idleness.” Welcoming the Minister, Chairman Waltersmith Petroleum Oil Limited informed that the company participated in an international tender in Equatorial Guinea and was declared the winner in one of the offshore blocks. Isah thanked the Government of Equatorial Guinea for the opportunity to participate in the tender, be properly evaluated and declared winner of the asset and explained that ”part of what we indicated to them was our capacity to plan and execute projects and we have submitted that to them.” He also assured the Minister of Waltersmith’s commitment to invest in Equatorial Guinea and support the development of the hydrocarbons industry, adding that “we see a lot of opportunities and similarities about our two countries and we are going to share our experience, capacity, technology and knowledge base that we have as Nigerians who have operated in this industry in the last 50 years.” He also announced that the initial target was to deliver the Ibigwe modular refinery project in two years, but it is now on track to be completed in 18 months. “By May 2020, we are going to commission the refinery and we will also do the ground breaking of the second phase of the refinery, which will take us to a total capacity of 30,000 barrels of oil per day,” he