Oil & Energy
Local Content Implementation Attracts $500m FDI
The Nigerian Content implementation has attracted foreign direct investments into the country worth over $500 million in the manufacturing of equipment components for the oil and gas industry, the Minister of Petroleum, Mrs Diezani Alison-Madueke has said.
Represented by the Permanent Secretary, Ministry of Petroleum Resources, Ambassador Abdulkadir Musa at the opening ceremony of the Practical Nigerian Content in Yenagoa, Bayelsa State, recently, the Petroleum Minister said the equipment component manufacturing initiative was an effective way to drive industrialisation of the economy as it has already created over 1,000 skilled jobs.
The equipment components manufacturing initiative mandates original equipment manufacturers to partner with their representatives to set up facilities to manufactureor assemble equipment components in Nigeria.
Alison-Madueke explained that the initiative will also ensure the retention of spend within the economy on critical industry equipment such as valves, pumps, electrical and instrumentation products.
She expressed optimism that the initiative will ensure that about 30 original equipment manufacturers would have been fully set up in Nigeria in the next five years describing the Nigerian Content Act as the most important development in the nation’s oil and gas industry.
Noting that the impact of the Act was being felt in several sectors of the economy, the minister said, “Nigerians now own land, swamp, jack up rigs. More Nigerians are acquiring anchor handling tugs, dynamic positioning platform vessels, line handling tugs and other larger vessels otherwise called category two vessels.”
She enjoined the local content board to lead the industry to establish vessel and rig maintenance facilities so that the nation’s economy would get the maximum benefits from asset ownership.
On moves by the board in respect of training and employment, she said: “In the last two years, over 500 Nigerians have been provide d with training and employment opportunities under the project based training scheme of Nigerian Content Development and Monitoring Board (NCDMB).
Also speaking the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu, pledged to partner with NCDMB in the industry to ensure that the federal government’s 70 per cent target is attained especially in the deep offshore operation said the participation of Nigerians especially in the upstream sector has increased from a merger 10 per cent to more than 30 per cent since the enactment of the Act.
Citing the USAN Deep Offshore field development as one significant milestone in that respect, Yakubu said: “These percentages are even higher and in some cases have attained 100 per cent. The Utrorogu Gas Plant Expansion Project is an example.”
Other projects with high local content value according to the NNPC boss include the OB3 pipeline project, Escravos Lagos Pipeline Phase 2 and the Aba Depot and Okirika Jetty Rehabilitation project.
He also pointed out that the windows of opportunities to grow the Nigerian Content exist in the upstream, midstream and downstream sectors of the oil and gas value chain.
Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor