The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigeria LNG Limited are collaborating to roll out tender opportunities from the gas production and processing company on the Oil and Gas E-Market Place as a major step towards implementing a key provision of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
Speaking at the Nigerian Content Seminar at the Nigerian Oil And Gas Energy Week (NOG 2023) in Abuja, on Monday, the Executive Secretary of NCDMB, Simbi Wabote,disclosed that the rollout of the oil and gas e-marketplace project would be carried out in phases and is starting with the Nigerian LNG.
A statement by NCDMB’s Corporate Communications,quoted Wabote said that a joint working committee comprising members of the company and the board was formed to co-create the blueprint for the phase-1 implementation of the e-marketplace, while subsequent phases of the project will include members of the Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), and the other stakeholder groups.
He commended the management and staff of Nigeria LNG for their readiness to comply with the provisions of the NOGICD Act and for demonstrating genuine willingness to partner with the board in various initiatives, recalling that the Service Level Agreements (SLA) was initiated with the company in 2017 to drive the timely approvals of requests submitted to the agency.
He explained that the board uses the Nigerian content seminar to discuss the various elements of the NOGICD Act with industry operators, service providers and other stakeholders in the industry, noting that this year’s seminar provided a platform to clarify the provisions of the Act, the ministerial regulations, guidelines, tools and initiatives.
He also noted that Section 70 (h) justified the board’s assistance of local contractors and support of Nigerian companies to develop their capabilities and capacities in furtherance of Nigerian Content development in the oil and gas industry.
According to him, the clarity became necessary to correct the wrong perception held in some quarters that the NCDMB was acting outside its mandate by supporting and partnering companies in strategic business ventures, adding that “this provision is at the heart of developing local capacities and capabilities in the oil and gas industry”.
He further stated that the provision explains why the board embarked on several initiatives, including the funding support and other initiatives that were directed toward developing both human capital and infrastructure.
The NCDMB listed some of the initiatives to include the $300million Nigerian Content Intervention Fund with the Bank of Industry (BoI), the $100million Matched Fund with NEXIM Bank, the $50million R&D Intervention Fund and the $50million NOGAPS Manufacturing Fund.
Other support provided by the board to local companies include partnering with local businesses to establish modular refineries, gas processing plants, LPG storage facilities, Base Oil production plant, LPG depot and refilling plants, and others with clear exit plans once the target goals are achieved.
Wabote observed that there are severe challenges negating manufacturing in the oil and gas industry, which is why the board is developing the NOGAPS Industrial Parks to provide modern infrastructure using the “sites and services” model to support in-country manufacturing.
He reported that the industrial parks were at various stages of development in seven states namely, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo and Ondo states.
“The NOGAPS Industrial Parks at Odukpani in Cross River State and the one at Emeyal-1 in Bayelsa State are both at advanced stages of completion and will commence operations in 2024”, he said.
Appreciating the contribution of the Shell Petroleum Development Company (SPDC) Joint Venture and the ExxonMobil Joint Venture for their contributions to the industrial parks using the CDI programmes, Wabote confirmed that the board had commenced the allocation of manufacturing shopfloors and services plots at the Odukpani and Emeyal-1 parks to qualified applicants.
The Director Planning Research and Statistics, NCDMB, Mr Abdulmalik Halilu, while speaking at the panel session with the theme, “Exploring Emerging Opportunities for Local Content in Achieving Energy Security,” stressed the need to focus on manufacturing as a veritable strategy for promoting local content in the oil and gas industry as manufacturing accounts for 54 percent of the spend on major oil and gas projects.
He hinted that the board’s programmes for supporting manufacturing included developmental and monitoring interventions such as the Nigerian Content Manufacturing Initiative (NCMI) which he noted was the precursor of the Nigerian Content Equipment Certification (NCEC).
He said, “Those programmes are geared to compel original equipment manufacturers to rethink their business models and to begin the manufacture some components of their equipment in Nigeria. Other initiatives include the Nigerian Oil and Gas Parks Scheme (NOGaPS), which is designed to enhance efficiency of manufacturing and cut off entry barriers.”
