Oil & Energy

NCDMB Lauds Firm Over Local Content Dev

Published

11 years ago

October 20, 2014

Executive Secretary, NCDMB, Ernest Nwakpa,, cutting the tape to inaugurate Benkline workshop in Port Harcourt, last Thursday. He is flanked by Chairman, Board of Directors, Benkline, Larry Osai (with mic), Jean-Claude Vachet of Total (3rd right), Thierry Bunel-Gourdy of Eurofiliales (2nd right) and General Manager, NCD, Shell Nigeria, Igo Weli (right).

Authorities of the Nigerian
Content Development and Monitoring Board (NCDMB) have lauded Benkline Nigeria Limited for blazing the trail as the first indigenous company to develop local expertise and begin in-country repairs and maintenance of critical original equipment in the Nigerian oil and gas industry.
Executive Secretary, NCDMB, Ernest Nwakpa, who gave the commendation last Thursday, at the official inauguration of a world-class one-stop pumps and rotating machines maintenance workshop built by Benkline in Port Harcourt, the Rivers State capital, said that the highly technical machines in the workshop meet the expectations of the board in its quest to enforce in-country domiciliation of knowledge and technology for the fabrication, repairs and maintenance of original oil and gas industry equipment.
Nwakpa, who inspected all equipment in the workshop, recalled his working visit to many oil and gas equipment manufacturing facilities across the world, and emphasized that what Benkline offers in-country was better than what most original equipment manufacturers (OEMs) provide abroad.
The executive secretary said that developing local capacity to provide in-country repair and maintenance services for critical equipment and technical spares in the oil and gas value chain was at the core of the mandate of the board, and added that the wholly Nigerian company has succeeded in checking capital flight, while at the same time reducing the costs and man-hours hitherto spent to deliver such services through offshore procurement system.
While showering encomiums on the company for setting the pace in partnering with OEMs to address the needs of the industry locally, Nwakpa, tasked Benkline to ensure that priority is given to research and development (R&D) to fast-track the development of indigenous human capacity and in-country domiciliation of the manufacture, repairs and maintenance of technical inputs in the oil and gas industry in Nigeria with a view to expanding the frontiers in the nation’s economy.
In his remarks, Chairman, House of Representatives Committee on NCD, Honourable Asita, expressed satisfaction with facilities at Benkline, and challenged other indigenous oil and gas companies to invest more in local content development to reduce the industry’s dependence on imported equipment and spares so as the grow the economy more speedily.
Asita assured that government would do its best to ensure that IOCs patronize indigenous companies in their equipment procurement, repairs and maintenance processes in line with the spirit of the NCD Law.
Earlier, Chairman, Benkline Nigeria Limited, Larry Osai, had stressed that their core service offerings include pumps and rotating equipment maintenance, HVAC, air compressors and planned management maintenance, as well as procurement of technical spares, workshop services and manpower supply and human capital development.
Listing Frank Mohn AS of Norway and Eurofiliales of France as major technical partners, Osai, a retired Shell Nigeria manager, said that the state-of-the-art workshop components include API mechanical seal test bench, sandblasting bay, and milling, grinding, balancing, lathe and welding machines, adding that it also boasts a combination of 3 to 8 tons forklift capacity as well as 5 and 7.5 tons hoist double girder overhead crane for machining, mechanical seals, pump repairs, offshore interventions, maintenance support, training and provision of technicians.
Flanked by top representatives of Frank Mohn, Morten Sivertsen and Gunnar Gunderson; and Eurofiliales, Thierry Bunel-Gourdy; the chairman explained that Benkline provides total marine, offshore and onshore pumps and pumping systems supply, installation and commissioning, HVAC solutions for marine and onshore operations in collaboration with MizCo of Australia, while also providing cost effective maintenance solutions on compressed air equipment for offshore operations in technical partnership with Tamrotor Marine Compressors of Norway.
While thanking the major IOCs for their support so far, Osai noted that the company also provides comprehensive procurement of FPSO/FSO, refinery and production facilities specialist spares, including integrated logistics support for long lead equipment transport, and urged the IOCs take advantage of the huge opportunities available in Benkline to “save time, money and support local content”.
Also speaking, Managing Director of the company, John Onwah, thanked the IOCs, especially SPDC, SNEPCO, Total, NAOC and Chevron for their patronage, and the NNPC and its subsidiaries, particularly the DPR for their support, and pledged their commitment to be the hub in technical support and excellent services in the oil and gas industry in Nigeria and the entire sub-Saharan Africa.
Highlights of the event were the inauguration of the workshop by Nwakpa, and guided inspection tour of facilities conducted by Eurofiliales’ representative, Bunel-Gourdy.

Oil & Energy

No Subsidy In Oil, Gas Sector — NMDPRA

Published

1 week ago

September 8, 2025

The Tide

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said there are no subsidies in the oil and gas sector as Nigeria operates a completely deregulated market.

The Director, Public Affairs Department, NMDPRA, George Ene-Italy, made this known in an interview with newsmen, in Abuja, at the Weekend.

Reacting to the recent reports that the Federal Government has removed subsidies or increased the price of Compressed Natural Gas (CBG), Ene-Italy said, “What we have is a baseline price for our gas resources, including CNG as dictated by the Petroleum Industry Act”.

He insisted that as long as the prevailing CNG market price conforms to the baseline, then the pricing is legitimate.

Furthermore, the Presidential – Compressed Natural Gas Initiative (P-CNGI) had said that no directive or policy had been issued by the Federal Government to alter CNG pump prices.

The P-CNGI boss, Michael Oluwagbemi, emphasised that the recent pump price adjustments announced by certain operators were purely private-sector decisions and not the outcome of any government directive or policy.

For absolute clarity, it said that while pricing matters fell under the purview of the appropriate regulatory agencies, no directive or policy had been issued by the Federal Government to alter CNG pump prices.

The P-CNGI said its mandate, as directed by President Bola Tinubu, was to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative fuel and diesel nationwide.

Oil & Energy

‘Nigeria’s GDP’ll Hit $357bn, If Power Supply Gets To 8,000MW’

Published

1 week ago

September 8, 2025

The Tide

The Managing Director, Financial Derivatives Company Limited (FDC), Bismarck Rewane, has said that Nigeria’s Gross Domestic Product (GDP) could rise to $357b if electricity supply would increase from the present 4.500MW to 8,000MW.

Rewane also noted that Nigeria has spent not less than $30 billion in the power sector in 26 years only to increase the country’s power generation by mere 500MW, from 4,500 MW in 1999 to 5,000MW in 2025 though the sector has installed capacity to generate 13,000 MW.

In his presentation at the Lagos Business School (LBS) Executive Breakfast Session, titled “Nigeria Bailout or Lights Out: The Power Sector in a Free Fall”, Rewane insisted that the way out for the power sector that has N4.3 trillion indebtedness to banks would be either a bailout or lights out for Nigeria with its attendant consequences.

He said, “According to the World Bank, a 1.0 per cent increase in electricity consumption is associated with a 0.5 to 0.6 per cent rise in GDP.

“If power supply rises to 8000MW, from current 4500MW, the bailout shifts money from government into investment, raising consumption and productivity. And, due to multiplier effects, GDP could rise to $357 billion.”

The FDC’s Chief Executive said “in the last 30 years, Nigeria has invested not less than $30 billon to solve an intractable power supply problem.

“The initiatives, which started in 1999 when the power generated from the grid was as low as 4,500MW, have proved to be a failure at best.

“Twenty-six years later, and after five presidential administrations, the country is still generating 5,000MW. Nigeria is ranked as being in the lowest percentile of electricity per capita in the world.

“The way out is a bailout, or it is lights out for Nigeria”, he warned.

He traced the origin of the huge debts of the power sector to its privatisation under President Goodluck Jonathan’s administration, when many of the investors thought they had hit a jackpot, only to find out to their consternation that they had bought a poisoned chalice.

Rewane, who defined a bailout as “injection of money into a business or institution that would otherwise face an imminent collapse”, noted that the bailout may be injected as loans, subsidies, guarantees or equity for the purpose of stabilising markets, protect jobs and restore confidence.

He said, “The President has promised to consider a financial bailout for the Gencos and Discos. With a total indebtedness of N4.3 trillion to the banking system, the debt has shackled growth in the sector.”

Rewane warned that without implementing the bailouts for the power sector, the GENCOs and DISCOs would shut down at the risk of nationwide blackout.

Rewane, however, noted that implementing a bailout for the power sector could have a positive effect on the country’s economy if Nigeria’s actual power generation could rise from today’s 4,500 MW to around 8,000 and 10,000 MW.

The immediate gains, according to him, would include improved power generation and distribution capacity, more reliable electricity supply to homes and businesses as well as cost reflective tariffs.

Oil & Energy

NEITI Blames Oil, Gas Sector Theft On Mass Layoff

Published

1 week ago

September 8, 2025

The Tide

The Nigeria Extractive Industries Transparency Initiative (NEITI) has blamed the increasing crude oil theft across the nation on the persistent layoff of skilled workers in the oil and gas sector.

The Executive Secretary, NEITI, Orji Ogbonnaya Orji, stated this during an interview with newsmen in Abuja.

Orji said from investigations, many of the retrenched workers, who possess rare technical skills in pipeline management and welding, often turn to illicit networks that steal crude from pipelines and offshore facilities.

In his words, “You can’t steal oil without skill. The pipelines are sometimes deep underwater. Nigerians trained in welding and pipeline management get laid off, and when they are jobless, they become available to those who want to steal crude”.

He explained that oil theft requires extraordinary expertise and is not the work of “ordinary people in the creeks”, stressing that most of those involved were once trained by the same industry they now undermine.

According to him, many retrenched workers have formed consortia and offer their services to oil thieves, further complicating efforts to secure production facilities.

“This is why we told the Nigerian Content Development and Monitoring Board (NCDMB) to take this seriously. The laying off of skilled labour in oil and gas must stop”, he added.

While noting that oil theft has reduced in recent times due to tighter security coordination, Orji warned, however, that the failure to address its root causes, including unemployment among technically trained oil workers would continue to expose the country to losses.

According to him, between 2021 and 2023, Nigeria lost 687.65 million barrels of crude to theft, according to NEITI’s latest report. Orji said though theft dropped by 73 per cent in 2023, with 7.6 million barrels stolen compared to 36.6 million barrels in 2022, the figure still translates to billions of dollars in lost revenues.

Orji emphasised that beyond revenue, crude oil theft also undermines national security, as proceeds are used to finance terrorism and money laundering.

“It’s more expensive to keep losing crude than to build the kind of monitoring infrastructure Saudi Arabia has. Nigeria has what it takes to do the same”, he stated.