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PETAN Rewards SPDC With Best LCD Award

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For its pioneering role in the introduction and implementation of local content development initiative, aimed at building indigenous capacity and capability in the oil and gas industry, the more than 50-member strong indigenous companies providing technical services in the upstream and downstream sectors of the oil and gas industry, Petroleum Technology Association of Nigeria (PETAN), has rated Shell Petroleum Development Company of Nigeria (SPDC), with an award as the best in local content development among all major international oil companies (IOCs) in Nigeria.

The award, which was presented to Shell at the just concluded Offshore Technology Conference (OTC), the world’s leading melting point for exhibition of cutting-edge innovations and expertise in oil and gas industry, in Houston, Texas, United States, by PETAN Chairman, Shawley Coker, is coming just few days after President Goodluck Jonathan signed the Nigerian Oil and Gas Content Development Bill into law, late last month, at the State House, Abuja.

A large contingent of PETAN members, and Nigerian government delegation led by Petroleum Minister, Mrs Deziani Allison-Madueke, were at the OTC to showcase their inventions, innovative skills and expertise in the critical oil and gas industry, and to also learn from global leaders in both upstream and downstream sectors of the industry that would continue to drive world economy and politics for decades to come.

Presenting the award to Shell, Coker said PETAN was excited at the commitment and driving force SPDC has brought to bear in the tacit implementation of the Federal Government’s policy on Nigerian content development and its contributions towards the passage of the bill by the National Assembly.

The PETAN chairman, commended SPDC for the “visible steps” taken so far to encourage the participation of indigenous companies in the highly technical and capital intensive oil and gas industry, and appealed to other IOCs to take a cue from SPDC and improve their stakes in local content development as a veritable means of fast-tracking the involvement of Nigerians in the industry’s lucrative playing field.

Announcing receipt of the unanticipated award on behalf of SPDC before some 40 senior journalists at the 2010 Bureau Editors/News Editors’ Forum in Port Harcourt, last Wednesday, General Manager, Nigerian Content Development, Simbi Wabote, said, Shell was “happy at the recognition, and will continue with efforts to empower more Nigerian companies, especially those based in the Niger Delta, to render key services in the oil and gas industry”.

Wabote noted that he was not surprised at the award following SPDC’s startling performance in the implementation of local content in critical areas of its operations, leading to the award of contracts to indigenous contractors valued at more than $1billion in 2008, adding that despite slow down in the global economy in 2009, SPDC also awarded contracts to indigenous contractors to the tune of more than $718million.

Focusing on the 2009 figure, the Shell NCD general manager stressed that, “of this, some 52 per cent of the contract value, representing $373million, went to companies based in the Niger Delta”.     

According to Wabote, Shell is “committed to developing Nigerian content by partnering with local community contractors to gradually build their capacity”, adding that the major industry player believes that “by supporting both established and new contractors in the Niger Delta, they will grow to play leading roles in the provision of goods and services in the oil and gas industry”.

He listed areas where Shell has excelled in developing indigenous capacity and capability of Niger Delta contractors to include marine logistics, surveillance, civil construction, flowline construction, information technology, and dredging, emphasizing that the focus now was to support community contractors to build additional capacity in engineering, fabrication, materials procurement, supply of steel plates and sections, wells and drilling services as well as inspection and testing.

The Tide recalls that SPDC’s community content initiative is designed to promote the use of human, material resources and services from local communities in the Niger Delta, without compromising quality, health, safety and environmental standards, in order to stimulate the development of the region in particular and Nigeria in general.  

 

Nelson Chukwudi

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Oil & Energy

NNPC, UTM Seal Deal On First Indigenous Floating LNG Project

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Nigerian National Petroleum Corporation (NNPC) and UTM Offshore have signed a Heads of Terms (HoT) agreement for the construction of the nation’s first indigenous floating LNG project.
The agreement, described as a major step towards bolstering Nigeria’s energy security and promoting the utilisation of its abundant gas resources, was signed on July 20, in Abuja.
It covers the 1.5 million tonnes per annum (mtpa) floating LNG project which is seen as a “must-do” initiative for Nigeria.
Signing the agreement, NNPC’s Group Chief Executive Officer (GCEO), Mele Kyari, expressed the company’s readiness to secure gas feedstock towards the project.
Group Managing Director UTM Offshore Ltd., Julius Rone, who described the deal as a milestone achievement, said it showcased the capability of indigenous companies to collaborate with world-class energy conglomerates to drive growth in Nigeria’s energy sector.
Rome further explained that apart from significantly cutting down on gas flaring and supporting the country’s commitment to reducing carbon emissions, the project would also create over 7,000 job opportunities, contributing to the nation’s economic growth and development.
For this project, UTM Offshore awarded the contract for the conceptual design service to JGC Corporation back in 2021.
It would be recalled that in late 2022, the consortium of JGC and Technip Energies secured the front-end engineering and design (FEED) contract.
The project was also supported by $5 billion from the African Export-Import Bank (Afreximbank).
Earlier this year, however, NNPC signed a Memorandum of Understanding (MoU) with Norwegian Golar LNG, an owner and operator of marine LNG infrastructure, to build a floating LNG plant in Nigeria.

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Oil & Energy

‘NNPC Spent N15b To Reconstruct Lagos-Badagry Expressway’

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The Nigerian National Petroleum Company Limited (NNPC Ltd.) has disbursed N15 billion for the reconstruction of the Lagos Badagry Expressway under the Federal Government Road Infrastructure Tax Credit (RITC) Scheme.
The N15 billion represents a 100 per cent payment of the funding of the Lagos-Badagry Road rehabilitation under the tax credit funding of the NNPC Ltd.
Group Chief Executive, NNPC, Mr Mele Kyari, made this known when he led NNPC’s management team with some top government officials to inspect the ongoing rehabilitation and expansion of Lagos-Badagry Expressway (Agbara Junction-Nigeria/Benin Border).
The road under rehabilitation is being funded by the NNPC Ltd. under the Federal Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
The execution of the scheme is being carried out in collaboration with the Federal Ministry of Works and Housing as the supervisor and Federal Inland Revenue Service (FIRS) for NNPC’s tax obligations deductions.
This is in response to address the plight faced by petroleum products marketers in transportation which affects nationwide distribution.
Kyari said the fund disbursed was part of the N621.24 billion earmarked for the reconstruction of 21 roads nationwide under the scheme.
He expressed satisfaction over the stage of the road development.
“We are covering 1,804.6mkm across the country and taking another set of over a trillion naira investment on infrastructure in Nigeria, believing that with the tax credit system which Mr President has put in place, very soon there will be massive change.
“NNPC as the enabler will consider from its cash flow and fund whatever FIRS and Ministry of works approve for the company”, he said.
The Minister of Works and Housing, Mr Babatunde Fashola, represented by the Director, Highways, Roads and Rehabilitation of the Ministry, Mr Folorunsho Esan, said the intervention of the NNPC sped up the reconstruction of the expressway.
Esan said the project was 40 per cent completed.
“In the next 12 months we should be able to deliver this project because the drainages are in place, just for earth works and pavement works, it cannot take us more than 12 months,” he said.
Speaking on the gridlock being caused by the Lagos-Ibadan Expressway project, he said the contractor would clear all impediments and move out of site by December 15 to make the highway free for Yuletide.

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Oil Marketers Urge Buhari To Crash Diesel Price

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Petroleum marketers under the platform of Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) rose from their 2nd National Executive Council (NEC) meeting last week, within a plea to President Muhammadu Buhari to direct the Central Bank of Nigeria (CBN) to make dollars available at official rate to oil marketers.
This, they said, will enable them import diesel, end petrol scarcity, and ultimately save the Nigerian economy from sinking, saying that dollar support should be available till Dangote Refinery comes on stream later in the year.
The association, among others, urged the National Assembly to immediately enact a Bill for the establishment of Energy Bank for easy transaction in petroleum products in the sector.
National President of the Association, Mr Benneth Korie, who briefed the media after the NEC meeting in Abuja, noted that the bulk of the operational challenge peppering marketers and depot owners spring from expensive diesel which hovers around N850/litre.
While thanking President Muhammadu Buhari for approving a higher bridging cost payment to transporters, Korie said the operators’ challenges were far from over as oil marketers and depot owners spend about N20 million weekly on diesel to power their operations, thus eroding their profits.
The association urges the National Assembly to review the policy of taxation as it affects petroleum products supply and distribution chain.

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