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NCDMB Lauds Firm Over Local Content Dev

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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).

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.

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Oil & Energy

NERC, OYSERC  Partner To Strengthen Regulation

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THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.
It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).
The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.
Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.
He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.
Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.
Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.
“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.
He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.
“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.
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NLC Faults FG’s 3trn Dept Payment To GenCos

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The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.
NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.
In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.
“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.
Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.
She feared the longstanding conflict could result in the eventual collapse of the country’s power.
According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.
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PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance  ……… Seeks PIA Review 

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The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).
President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.
Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.
The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.
In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.
He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.
Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.
He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.
Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.
“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.
He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.
“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..
According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.
“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.
Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.
“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.
Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.
“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.
According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”
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