Local Content: NCDMB gives kudos to LADOL for compliance

The Nigerian Content Development and Monitoring Board (NCDMB) has lauded activities at the Lagos Deep Offshore Logistics base (LADOL), saying the indigenous oil and gas logistics service provider is a testimony of the success story of Local Content laws in Nigeria.

Simbi Kesiye Wabote, the executive secretary of NCDMB, who gave the appraisal in Lagos on Thursday, when he led a team of his officials on a facility tour of the base at the Apapa Port, was also accompanied by top officials of some international oil companies (IOCs) comprising Adax, Chevron, Eni and TOTAL.

Wabote described the visit as essential to carrying out an on-the-spot assessment of the level of local content compliance on the building of $3.8 billion Floating, Production, Storage and Offloading (FPSO) fabrication yard, known as Egina project, which LADOL is currently playing host.

The project, which was described as first-of-its-kind in the sub-Saharan Africa, is being handled by the Korea-based Samsung Heavy Industries (SHI) as technical partner and LADOL as the local content partner, on behalf of the TOTAL Oil Exploration.

Engineer Wabote who noted that the compliance level was satisfactory, said he was particularly gratified that such remarkable fit was coming from a 100 percent Nigerian-owned facility, even as “they are moving up in compliance with our directives.

“Though, NCDMB has been working closely with LADOL over the years. We are here specifically to appraise the Egina project, and I can safely say that LADOL is a poster child of Nigerian Local Content development with over 90 percent Nigerians working in the facility,” he said.

While urging the management to remain committed to its set goals and objectives in ensuring cost savings, jobs creation as well as technology development, Wabote assured LADOL of the NCDMB’s commitment to galvanising patronage for the facility.

“The current administration is working hard to create jobs, and that is part of what LADOL is doing here. They have embraced local content and it has a multiplier effect of lowering cost of doing business and it ensures security of supplies,” he said.

Amy Jadesimi, managing director of LADOL said the location of LADOL was informed by the growth in oil and gas activities in Nigeria, and a deep offshore logistics base in the region will guarantee an effective control of domestication of deep offshore activities in-country.

“Facilities such as LADOL make for healthy competition with other emerging oil and gas countries and once Nigeria is competitive, it will attract more investments. It would make Nigeria the ideal location for domestication of oil and gas activities given our huge market advantage,” she added.

While stating that LADOL has come to prove that real local content actually lowers cost, Jadesimi said that countries like Brazil, Norway and even China that had real local content, have cheaper cost of doing business.

“NCDMB’s perseverance that this facility is built in the face of overwhelming opposition shows us, on one hand, what a tough job the agency has on hand, and on the other hand, it also shows us how important it is that we all comply and that we all work with the board and follow their recommendations,” she added.

Ladipupo Jadesimi, executive chairman of LADOL, who described the visit of the team as an assignment in deepening local content in Nigeria, noted that one of the banes of development in the country is “the concept of abandoned projects, but thankfully, the Egina project was successful.