NCDMB Pushes For Local Participation In Executing Projects

The Nigerian Content Development and Monitoring Board (NCDMB) has reaffirmed its commitment to promoting indigenous oil and gas service firms in the execution of major industry projects, including Shell’s $5 billion Bonga North deepwater project and TotalEnergies’ $550 million Ubeta gas project.

Executive Secretary of the NCDMB, Mr. Felix Ogbe, made this known in Lagos during a recent visit to key industry facilities, including Samsung Heavy Industries Nigeria (SHIN) and Africoat Nigeria Limited, a pipe coating plant located at Takwa Bay.

During the visit, Mr. Ogbe emphasised the importance of patronising local facilities, stating that such engagements would help develop domestic competencies and align with the Local Content Act. He noted that NCDMB had played a crucial role in securing approvals for both the Bonga North and Ubeta projects, and other high-profile upstream developments such as ENI and Shell’s Zabazaba deepwater project, as well as Shell Nigeria Exploration and Production Company Limited’s (SNEPCo) HI and HA gas projects.

Highlighting the agency’s continued collaboration with international oil companies (IOCs), Ogbe reiterated that new projects must include significant local content in their execution, in line with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. He stressed that these initiatives were directly contributing to President Bola Tinubu’s economic agenda by fostering job creation, enhancing local capacity, and driving economic revitalisation.

At SHIN, the Managing Director, Mr. Jin Lee, outlined the company’s expertise in heavy fabrication and Floating Production, Storage, and Offloading (FPSO) integration. He referenced the firm’s previous success in fabricating and integrating six modules for the Egina FPSO project in 2018. Business Development Manager, Mr. David Bruce Inglis, further elaborated on the company’s in-country training programs, revealing that SHIN had trained 560 specialised welders, including women, during the Egina project. He noted that at its peak, the facility employed over 1,000 workers, but due to a lack of new projects, staffing had dwindled to just 131. He, however, assured that SHIN had a database of skilled personnel who could be re-engaged when new contracts were secured.

In addition to servicing Nigeria’s oil and gas sector, SHIN expressed its ambition to manufacture industry components locally for export, leveraging Nigeria’s strategic geographical location. Mr. Inglis affirmed that the facility had the required capacity to support international demand and enhance Nigeria’s footprint in the global energy market.

At Africoat Nigeria Limited, Mr. Ogbe addressed ongoing challenges affecting the company’s operations. He urged Africoat’s management to resolve its prolonged disputes with its financial partners and its landlord, Lagos Deep Offshore Logistics (LADOL), which had prevented the facility from operating since its completion in 2017. He advised that a peaceful resolution would allow the plant to be rehabilitated, providing much-needed services to the industry while creating job opportunities for Nigerians.

The Managing Director of Africoat, Mr. Frank Twynam, acknowledged the concerns and assured that steps were being taken to resolve the impasse. He disclosed that the company had invested $42 million in developing the corrosion and concrete weight coating plant and was prepared to restore operations once the disputes were settled.

The NCDMB’s engagement with these facilities highlights its commitment to strengthening local participation in Nigeria’s oil and gas sector. In ensuring that indigenous firms play a pivotal role in major projects, the agency aims to drive industrial growth, create jobs, and solidify Nigeria’s position as a key player in the global energy industry.