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Nigerian content: Egina attracts $1bn investment – Nwapa

By BusinessNews Staff on February 16, 2015

Over $1billion has been invested in the Nigerian oil and gas industry to create capacity and execute Nigerian Content scopes provided on the Egina deep water project, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Ernest Nwapa said at the weekend.

Egina-Total Exploration and Production’s $15bn deep water project is the first major oil and gas project to be started under the Nigerian Content Act and it includes an FPSO unit, an oil offloading terminal and subsea production systems such as risers, 52km of oil and water injection flowlines, 12 flexible jumpers, 20km of gas export pipelines, 80km of umbilicals and subsea manifolds.

Speaking in Port Harcourt, Rivers State when he unveiled Saipem’s new double/ quadruple joint plant, the Executive Secretary stated that the investment worth $60million was made towards delivering Saipem’s Nigerian Content scope on the Egina project.

He added that the plant was worthy of celebration as it confirmed that the Board’s strategy to include Capacity Development Initiatives (CDIs) in major projects was working.

He informed that CDIs would promote opportunities for training, knowledge and technology acquisition, adding that shop floors were expanding and capacity to execute work in Nigeria had increased substantially.

Speaking further, Nwapa reiterated that over $5bn worth of investments have been made in Nigerian yards since the signing of the Nigerian Content Bill into law by President Goodluck Jonathan in 2010, especially by PETAN member companies and other firms like Aveon, Cameron, Ladol, Nigerdock, FMC, Tenaris, EWT etc while about 40,000 technical jobs were being created per annum.

He credited the President and the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke for providing the political support and conducive environment to implement the Nigerian Oil and Gas Industry Content and Development Act.

“Their support strengthened the Board to overcome local and international resistance from very powerful forces,” he added.

The Executive Secretary also commended Total for its continued investment in Nigeria despite the challenging economic environment, particularly the fall in crude oil prices, adding that NCDMB was focusing more on its developmental roles owing to the need to build collaboration to achieve targets set by the Act.

In his welcome address, the Managing Director of Saipem Contracting Nigeria Limited (SCNL) Mr. Giuseppe Surace, confirmed that the company was in Nigeria for the long term and invests as a demonstration of its commitment to the nation. He added that the company viewed Nigerian Content as an opportunity for development rather than a requirement for compliance.

The event was attended by representatives of international oil and gas companies, and service providers, especially local partners of Saipem on the Egina project. In their comments, representatives of Saipem’s local partners expressed their appreciation for the opportunity to build their businesses and acquire new capabilities.

Already, their partnership had achieved several firsts in the industry, one of which is PCNL’s qualification to produce the 5LPP coating on pipes and joints. Another company, Mudiame also secured accreditation to carry out high tech qualification tests on the project.

[ThisDay]

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