The Nigerian National Petroleum
Corporation has pledged to partner with the Nigerian Content Development and
Monitoring Board to grow Nigerian Content in the oil and gas industry to the 70
per cent target set by the Federal Government, especially in the complex deep
offshore.
The Group Managing
Director of NNPC, Andy Yakubu who spoke at Practical Nigerian Content
Conference held this week in Yenagoa, Bayelsa reported that the participation
of Nigerian Content in the industry, especially in the upstream has
substantially increased from a merger 10 per cent before the enactment of the
law to more than 30 per cent, sitting example with the recent USAN Deep
Offshore Field development.
Director of NNPC, Andy Yakubu who spoke at Practical Nigerian Content
Conference held this week in Yenagoa, Bayelsa reported that the participation
of Nigerian Content in the industry, especially in the upstream has
substantially increased from a merger 10 per cent before the enactment of the
law to more than 30 per cent, sitting example with the recent USAN Deep
Offshore Field development.
“These percentages are even higher and in some
cases have attained 100 per cent, for example the Utorogu Gas Plant Expansion
Project,” he added.
cases have attained 100 per cent, for example the Utorogu Gas Plant Expansion
Project,” he added.
The GMD listed other projects with high
Nigerian Content value to include the OB3 Pipeline Project, Escravos Lagos
Pipeline Phase 2, the Aba Depot and Okirika Jetty Rehabilitation Project.
Nigerian Content value to include the OB3 Pipeline Project, Escravos Lagos
Pipeline Phase 2, the Aba Depot and Okirika Jetty Rehabilitation Project.
He explained that windows of opportunities to
grow Nigerian Content exist in the upstream, midstream and downstream segments
of the oil and gas value chain to grow Nigerian Content.
grow Nigerian Content exist in the upstream, midstream and downstream segments
of the oil and gas value chain to grow Nigerian Content.
Yakubu also advised Nigerians to set up medium
sized companies in both exploration and production in areas like well services
engineering, measurement, mud and logging engineering services.
sized companies in both exploration and production in areas like well services
engineering, measurement, mud and logging engineering services.
According to the GMD, the monetization of the
country’s natural gas endowments presented other opportunities for growing
Nigerian Content, just like the revamping/rehabilitation of existing downstream
infrastructure.
country’s natural gas endowments presented other opportunities for growing
Nigerian Content, just like the revamping/rehabilitation of existing downstream
infrastructure.
He further stated that the enactment of the Nigerian Content by
Mr. President Goodluck Jonthan had positively impacted on the sector and
expressed hope that the passage of the Petroleum Industry Bill by will further
enhance benefits from the Nigerian Content Act.
Mr. President Goodluck Jonthan had positively impacted on the sector and
expressed hope that the passage of the Petroleum Industry Bill by will further
enhance benefits from the Nigerian Content Act.
Also speaking, the Executive Secretary of
NCDMB, Ernest Nwapa stated that for Nigeria to be a great oil producing nation,
stakeholders must make conscious efforts to develop a robust supply chain which
will includes facilities, own assets and stimulate local manufacturing.
NCDMB, Ernest Nwapa stated that for Nigeria to be a great oil producing nation,
stakeholders must make conscious efforts to develop a robust supply chain which
will includes facilities, own assets and stimulate local manufacturing.
According to him, there was a compelling need to create legacies
from mega industry projects so that long after contracts have been concluded,
Nigerians can be productively engaged and use capacities developed to service
other sectors of the economy.
from mega industry projects so that long after contracts have been concluded,
Nigerians can be productively engaged and use capacities developed to service
other sectors of the economy.
He canvassed the adoption of a developmental model which focuses
on creating in-country value and building a viable industry as against just
extracting and selling crude oil to earn revenue for government.
on creating in-country value and building a viable industry as against just
extracting and selling crude oil to earn revenue for government.
Nwapa warned that any slip in the implementation of the Nigerian
Content Act will reverse the gains already recorded like the patronage of the
SCC Pipe Mill and lead to disuse of facilities and loss of jobs.
Content Act will reverse the gains already recorded like the patronage of the
SCC Pipe Mill and lead to disuse of facilities and loss of jobs.
Culled from the
Sweetcrude Reports, Thursday, November 22nd, 2012.
Sweetcrude Reports, Thursday, November 22nd, 2012.
