The strict implementation of the Nigerian Content Development initiative in Shell Petroleum Development Company of Nigeria (SPDC) between 2007 and now has resulted in the building of the capacity and capability of more than 9,500 community people to fit into the lucrative oil and gas sector, while also helping to establish over 10 indigenous oil servicing companies to take advantage of the gaps that exist in the industry.
The Tide notes that the actual monetary value of the NCD input into the oil and gas major’s activities in the Niger Delta is yet unknown, but available figures show that in 2008 alone, SPDC spent well over $1billion on local contracts, and more than $718million in 2009 on indigenous contractors’ contribution to capital project uptake in the industry while Gbaran Ubie Integrated Oil and Gas Project has invested more than $1billion on the procurement of needed labour, materials and services in-country between 2007 and 2010.
Speaking at the 2010 edition of the Bureau Chiefs and News Editors’ Forum in Port Harcourt, recently, Shell Africa Regional Manager, Supply and Procurement, Schmidt Laurie, said her mission was to ensure increased participation of Nigerians, particularly host communities, in the oil and gas business, so as to benefit from the resources in their areas, and expressed readiness to create the enabling environment for easy access of indigenous contractors to the necessary tools required to actively participate and succeed in the industry.
In his speech, Shell’s General Manager, Nigerian Content Development, Simbi Wabote, said the company would do anything to increase the number of indigenous people trained to participate in the operations of the oil industry, saying that more local contractors were being encouraged through training and capacity building to tap into the yawning field in order to up their stake in the nation’s economy.
Wabote noted the litany of successes recorded so far, and said that Shell’s effort has resulted in the growth of local contractors and emergence of new oil and gas-related businesses in the region, adding that barring the obviously daunting challenges posed by the dearth of functional steel industry, in addition to the poor power supply situation, the industry has achieved about 40 per cent local content.
Speaking on the catalogue of success stories, Ama Ikuru, Shell’s community content manager, said the initiative was anchored on the need to harness areas where gaps exist, adding that e-contracting and e-tendering were tools for achieving results, and ensuring level playing field for local contractors.
While presenting their score card for the four-year period, the NCD team said they were working with local contractors to build their capacity and capability to compete in the highly capital intensive and technically challenging industry, and also encourage the involvement and participation of indigenous stakeholders to benefit from the resources in the oil and gas industry.
According to available statistics, the NCD team facilitated the training of 44 Niger Delta youths on scaffolding in 2007, supported the development of eight local dredging companies and trained the workforce of three flowline contractors.
In 2008, the team stated that it ensured the training of 12 abseilers and painters, 75 marine craftsmen, 210 entrepreneurs on business development, built the capacity of 600 vendors, and completed the level two certification of 44 youths in scaffolding.
The team also explained the engagement of 1,800 contractors on Life Saving Rules for successful business operations, the training of 12 caterers, 270 entrepreneurs, 60 engineers in project management, 100 welders, and 1,000 vendors in general vendor development, just as it supported over 20 local vendors to the United Kingdom TI trade mission in London in 2009.
Between January and May this year, the NCD team noted that it has trained 90 engineers in project management, 100 welders, 60 artisans in plumbing, tiling and painting, 26 slickline engineers, while 32 youths are presently undergoing a one-year City and Guilds level 1 training at Bonny Vocational Centre.
Partners Execute Shareholder Agreement For Brass Products Terminal
The Nigerian National Petroleum Corporation, (NNPC), along with their partner, the Nigerian Content Development & Monitoring Board, NCDMB, and Zed Energy have executed a shareholders’ agreement for the establishment of a 50 million litre Petroleum Products Terminal in Brass, Bayelsa State.
The N10.5 billion Brass Petroleum Products Terminal project is expected to deliver an automated 50 million litre depot with two-way product jetty, automated loading bay, and 6 automated tanks for storage of 30 million litres of Premium Motor Spirit (PMS)and 20 million litres of Automotive Gas Oil (AGO) and Dual Purpose Kerosene (DPK).
While speaking at the signing ceremony, the Minister of State for Petroleum Resources, Chief Timipre Sylva commended President Muhammadu Buhari for his giant strides in the Niger Delta which is making a huge impact on the people of the area.
“I make bold to say today without any fear of contradiction that no President has impacted the people of the Niger Delta like President Muhammadu Buhari. Aside from what we are witnessing today, remember there is also the Brass Fertilizer & Petrochemical Company, the Oloibiri Oil and Gas Museum and the Oil & Gas Park in Ogbia, all under Mr. President,” the Minister stated.
Sylva added that the establishment of the Terminal further demonstrates Mr. President’s commitment to the enhancement of the livelihood of the Niger Delta people particularly, the riverine communities in Bayelsa State where people purchase products at exorbitant prices due to logistics challenges associated with transporting products to that area.
Speaking shortly after signing the agreement, the Group Managing Director of the NNPC, Mallam Mele Kyari said the Corporation was proud to be part of the project which aside ensuring products availability in all nooks and crannies of the Niger Delta, will also guarantee the nation’s energy security and generate employment.
“This Terminal will create 1,000 direct jobs during the construction phase, and over 5,000 indirect jobs during its operation. Considering the potential for employment when completed, this will definitely reduce youth restiveness in the Niger Delta area and will also address the problem of illegal refining in the area,” Kyari stated.
In his remarks, the Executive Secretary of NCDMB, Simbi Wabote stated that this milestone was as a result of strong interagency collaboration and public-private sector partnership.
“The NCDMB will continue to drive such partnerships across the industry to bring development in Nigeria,” he noted.
Earlier, the Coordinator of the Project and Group General Manager, National Petroleum Investment Management Services (NAPIMS), Mr. Bala Wunti stated that the project would enhance the economics of marine petroleum products distribution.
Senate Hails NNPC’s Drive Towards Profitability
The senate has commended the Nigerian National Petroleum Corporation (NNPC) for its efforts towards attaining profitability and stamping out corruption from its system.
Chairman, Senate Committee on Anti-corruption and Financial Crimes, Suleiman Abdu Kwari, gave the commendation at a hearing which was held at the national assembly complex, Abuja.
Kwari said it was heart-warming to learn that the NNPC was making great strides towards profitability and urged the corporation to sustain the gains recorded so far for the good of the country.
In his presentation at the hearing, Mele Kyari, the group managing director of NNPC, said the corporation was championing the fight against corruption in the oil and gas industry by placing measures to curb incidences of corruption across its various business portfolios and by enlisting as a partner company of the Extractive Industries Transparency Initiative (EITI).
He also said that the corporation has reported several incidences of infractions such as products diversion and crude oil theft to the police, EFCC and other investigating agencies of the federal government to stem corruption within the oil and gas industry.
In an effort to clampdown on fuel smuggling, the ministry of petroleum resources launched the operation white project in October 2019 to monitor and track the movement of petroleum products in the country.
Also in February 2021, the Department of Petroleum Resources (DPR) launched the downstream remote monitoring system (DRMS) to track the movement of petroleum products from depots to retail outlets.
“We have created an anti-corruption desk in NNPC that engages the Economic and Financial Crimes Commission (EFCC) and other anti-corruption agencies on a regular basis,” NNPC GMD said.
“The desk ensures that in all our operations, every staff complies to the code of conduct procedures with consequence management.
“We have established a regulatory compliant governance charter and transparency policy; this is a mark of our compliance to the anti-corruption strategy.
“For the first time in 43 years, NNPC, as a part of the evolving culture of transparency and accountability, published its Audited Financial Statements (AFS) for 2018 and 2019. We are going to publish that of 2020.
“The AFS is the only document that tells how a company does its transaction. We are happy that by the time the 2020 AFS will be published, Nigerians will see the dividends of our accountability.”
Chevron Spends $10bn On Nigerian Suppliers, Service Providers
Chairman/Managing Director, Chevron Nigeria Limited (CNL), Rick Kennedy, said the company has in the last 10 years spent an estimated annual average of $1 billion on Nigerian suppliers and service providers in line with its commitment to Nigerian Content Development.
Highlighting the opportunities and new approaches to the future of hydrocarbons at the ongoing 2021 NIPS in Abuja, Kennedy stressed the need for robust policies and regulations to address and remedy existing challenges in the oil and gas industry; digital technology/innovations; cost efficiency initiatives; sustained social investments as well as continued support for Nigerian Content Development.
Kennedy, who was represented by Monday Ovuede, director, NNPC/CNL Joint Venture, identified opportunities in lowering carbon emissions and harnessing Nigeria’s gas resources as key enablers in complementing the new approaches to future of hydrocarbons in the Nigerian oil and gas industry in the post COVID-19 era.
According to him, the global community has continued to scale up the collaboration towards lower carbon emissions, adding that Chevron supports global efforts to reduce carbon emissions and is actively investing in operations to improve environmental performance while also working with industry to develop new innovative technology and best practices to achieve these objectives.
He emphasised that CNL’s gas strategy is to end routine gas flaring and build a profitable gas business through a portfolio of projects, and stated that in Nigeria, CNL, with its joint venture (JV) partners, the Nigerian National Petroleum Corporation (NNPC), has progressively reduced routine gas flaring by over 95% in the past 10 years and remained ahead in terms of maximising supply of on-spec gas into the Nigerian domestic market.
He also highlighted the NNPC/CNL’s Gas Sales and Aggregation Agreements with Egbin Power Plc, Dangote Fertilizer Limited, and Olorunsogo Generation Company Limited, while mentioning the positive impact of the West African Gas Pipeline (WAGP) through which Nigeria supplies gas to countries in the West African sub-region – specifically, Ghana, Togo, and Benin – thus, helping to boost economic development in West Africa.
Kennedy also noted that Chevron has joined other energy companies supporting the Methane Guiding Principles to reduce methane emissions from natural gas exploration and production operations through digital innovation and deployment of best practices, which include designing, constructing, and operating its facilities in a manner to reduce emissions from its operations.
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