Local content: NCDMB to support firms operating in Onne oil, gas services centre
Determined to drive the provisions of the Local Content Development Act in the nation’s oil and gas sector, the Nigerian Content Development and Monitoring Board (NCDMB) has assured companies operating in the Oil and Gas Services Centre, located in Oil and Gas Free Zone Onne, of its support towards enabling the firms to maximise their potentialities.
The Board, which also promised to help the companies address some of their operating challenges, encouraged the companies to approach the Board in an event of any challenges. The NCDMB further expressed willingness to support any company seeking to domicile its operations in Nigeria.
Denzil Kentebe, the executive secretary of NCDMB, made this promise recently, when he led the Nigerian Content Development general managers of the international producing companies and other stakeholders in the oil and gas industry, to tour the Oil and Gas Services Centre in Onne.
The tour, which was coordinated by Intels Nigeria Limited, the concessionaire in charge of the zone whose integrated logistics services are dedicated to the oil and gas industry, enabled Intels to showcase its investments in berthing facilities, port operations equipment, offices and accommodation facilities etc.
Speaking during the tour, Kentebe explained that the purpose of the visit was to get the industry to appreciate the capacities of companies operating in the oil and gas service centre and the Free Trade Zone. He noted that the Board was insisting on the utilisation of locally manufactured inputs by the oil and gas industry and many of such activities were carried out in the zone.
The NCDMB boss however, expressed delight that companies inspected were engaged in value addition activities and manufacturing of components, which according to him, holds the key to real Nigerian content growth and employment creation.
On complaints from the operators of West Atlantic Shipyard that vessels manufactured by the company in the Zone, were often taxed exorbitantly when moved out of the vicinity, Kentebe promised that the Board will engage relevant agencies of government to ensure that applicable tax policies do not negate the essence of establishing the zone.
He however, charged the company to ensure that it restarts full vessel manufacturing in addition to dry docking of vessels. “This is because NCDMB will begin to give first consideration to locally built vessels in tenders from 2016.”
Bamidele Badejo, managing director of Oando Energy Resources, noted that the company’s three rigs-OES Integrity, OES Respect and OES Teamwork were moored at the Free Trade Zone as they were out of work.
To further drive Nigerian Content Act, he said that the company invested $450 million in the acquisition of four rigs and employed 600 persons when three of the rigs were working. “We regret to say that the staff strength had been cut to 200 due to slide in prices of oil and downturn in operations. However, we plead with the Board to help the company secure business so we can recall our staff and make our investment worthwhile.”
On the other hand, the management of Cameron Valves Nigeria pointed out that the firm assembles 100 percent valves components in the Onne facility and is perfecting plans to start manufacturing components in future.
At One Subsea, the officials disclosed that the company was assembling Christmas Trees for ExxonMobil’s Erha North project and that 70 percent of the project team is Nigerians. One Subsea Offshore Systems is one of the leading providers of flow equipment products, systems and services to oil and gas and process industries.
Meanwhile, the officials of General Electric said the company is repairing and maintaining Christmas Trees for Shell Bonga project and executing other deep water projects. The Christmas Trees were dismantled and assembled back in the facility and returned to the offshore production platforms.
In their presentation, officials of West African Ventures noted that the certifications offered by the Maritime Academy of Nigeria (MAN), Oron to seafarers were not accepted by the industry operators, and offered to upscale the capacity of their graduates to enable them acquire the skills needed to work in the oil and gas industry.
Speaking after the tour, Isidore Sambol, head, public relations of Intels, explained that his organisation was committed to the realisation of Nigerian Content in line with the policy thrust of the federal government for the oil and gas industry.
He further disclosed that the plans for Onne Phase 4b project by Deep Offshore Services Limited would when completed double the present capacity of the services center and create more jobs for Nigerians. “The Phase 4b project is on-going with dredging and reclamation works underway for the construction of an additional 2,000sqm jetty with a 12 meter draft at low tide. Others include 600 Ha of industrial area, an inner channel and turn basin.”
These projects, according to him, are aimed at investing on fabrication, manufacturing, integration services, spool base and dockyard. Sambol pointed out that the oil and gas free zone, Onne is only 40 percent utilised and called on investors to take advantage of the federal government incentives to invest in the Zone.
Other companies visited by the Board included West Atlantic Shipyard, OPMC, Remm Oil Services, and GE Subsea Facility. The team also visited FMC Technologies, Adamac, Total Premier Services, Vallourec Oil and Gas, Titan Tubular, Tenaris and Pipe Coaters Nigeria Limited.
Uzoamaka Anagor-Ewuzie