…Despite delay in passage of PIGB, FIDs, investments still happen
Peace Obi
The Executive Secretary, Nigerian Content Development and Monitoring Board, Engr. Simbi Wabote has said that almost 80 per cent of the contracts in the Nigerian oil and gas industry are awarded to local contractors.
Engr. Wabote made this disclosure on Thursday in Lagos during a press conference for the forthcoming 2019 Nigerian Oil and Gas Opportunity Fair (NOGOF), stating that the Board’s commitment to its mandate of building local capacities in the Nigerian oil and gas industry has resulted in a significant level of penetration by the local contractors in the nation’s oil and gas industry. According to the NCDMB boss, the 2019 NOGOF scheduled to hold between April 4th – 5th April 2019 at the NCDMB’s Headquarters Oxbow Lake, Yenagoa, Bayelsa State, that it is specifically designed to serve as a platform where opportunities that exist within the Nigerian and oil and gas industry is showcased.
H said, “One of the key objectives of NOGOF is to bring together governments, national oil companies, investors, corporate players and independents; we can give them a unique space within our country to network, discuss and share knowledge. The potential benefits of the NOGOF 2019, include integrating of producing communities into the oil and gas value chain, fostering institutional collaboration, maximizing participation of Nigerians in oil and gas activities, linking oil and gas industry to other sectors of the economy, and maximizing utilisation of Nigerian resources,” Wabote said.
Speaking on some of the Board’s achievements, the ES said, “The level of penetration by the local contractors is impressive. I can tell you that almost 80 per cent of the contracts that are awarded in the oil and gas sector go to local contractors. That gives you a significant level of penetration because no international company without the local firms is allowed to take up a contract in the oil and gas industry,”
Also on the integration of the oil communities into the oil and gas business the Executive Secretary, said, “About five months ago, we signed off what is called the “community Content Policy”, with that, any project opportunity that will be happening in any community, there are scopes that have been earmarked for the community contractors. As such, opportunities for employment for community people are also spelt out clearly in the Nigerian Content Plan which is very important.”
Speaking further, the ES noted that despite the delay in the passage of the PIGB into law, the country has continued to witness significant investment decisions and the subsequent execution of several projects. Disclosing that about $20bn investment has been attracted into the country in the last two years while projecting that about $25bn investment opportunities would be attracted into the nation’s oil and gas industry in the next two years.
Citing some of the opportunities that the Board highlighted during the 2017 NOGOF which FIDs have been taken on to include SPDC Assa North Gas Development project, SNEPCo Bonga South West, Ikike projects; completed projects like, Total’s Egina, the ES said, “There has been substantial progress and things are looking up, especially with the resolution of a lot of the cash call challenges that joint venture operators were facing which stagnated projects and investments.
“Since the resolution, a lot of opportunities are springing up in all the Joint Venture operators that e have. The other day, we also saw the Nigerian Petroleum Development Company inaugurating a significant project, almost about $200m adding value to the industry.
“So, within the past two years, I can comfortably say that we have pushed opportunities up to about $20bn into the oil and gas industry through these opportunities that we share and I think in the next two years, we also look forward to another $25bn in the Nigerian oil and gas industry going by the opportunities that we have identified and want to also share.
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