The Nigerian Content Development and Monitoring Board (NCDMB) has insisted that international Oil Companies (IOCs) must patronize local firms in the execution of their projects, in line with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
According to a statement issued on Tuesday, the assertion was made by the Board’s Executive Secretary, Engr. Felix Omatsola Ogbe, when he visited the facilities of Samsung Heavy Industries Nigeria (SHIN) and Africoat Nigeria Limited in Lagos.
Ogbe said the Board is committed to ensuring that major projects in the oil and gas industry such as the Ubeta gas development by TotalEnergies and the Bonga North deep-water project, led by Shell Nigeria Exploration and Production Company Limited (SNEPCo), involve the participation of local firms.
“NCDMB played key roles in accelerating approvals for the new projects, which include the Ubeta gas development project, currently being developed by Total Energies, and Bonga North deepwater project, for which Shell Nigeria Exploration and Production Company Limited (SNEPCo) had announced the final investment decision (FID) in December 2024. Similarly, the Zabazaba deep-water project is being readied by ENI and Shell, just as preparations for the HI and HA gas projects are being made by (SNEPCo).
“The NCDMB’s boss conveyed the agency’s determination to continue partnering with IOCs to develop new projects and to ensure they execute key scopes of those projects using local firms with proven capabilities, as mandated by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
“He asserted that NCDMB’s mandate and activities are contributing to actualizing President Bola Ahmed Tinubu’s economic agenda, particularly in catalyzing new oil and gas projects, job creation, and economic revitalization,” the statement read.
NCDMB Boss challenges Africoat on stalled operations
At Africoat Nigeria Limited, the NCDMB Executive Secretary challenged the company on its longstanding disputes with its bankers and its landlord, Lagos Deep Offshore Logistics (LADOL), which have kept the plant non-operational since its completion in 2017.
He stressed that resolving these disputes would pave the way for the facility’s rehabilitation, benefiting both investors and the economy.
Africoat’s Managing Director, Mr. Frank Twynam, confirmed that discussions were ongoing to resolve the dispute. He stated that the company had invested $42 million in developing the corrosion and concrete weight coating plant and had a plan in place to restart operations once the disputes were settled.
Samsung briefs NCDMB on local capacity, challenges
During his visit to Samsung Heavy Industries Nigeria, Ogbe was briefed by Managing Director Jin Lee, who highlighted the company’s in-country capacities, including heavy fabrication and Floating Production Storage and Offloading (FPSO) integration.
- Lee noted that the facility was instrumental in executing the fabrication and integration of six modules for TotalEnergies’ Egina FPSO in 2018.
- The Business Development Manager, Mr. David Bruce Inglis, noted that the company had trained 560 welders, including women, during the Egina project.
- However, he lamented that Samsung’s workforce had shrunk from over 1,000 at the peak of the Egina project to just 131 due to a lack of new contracts.
“The Business Development Manager, SHIN, Mr. David Bruce Inglis said the company trains welders in different specialization and had trained 560 welders during the execution of the Egina project, including women.
“He said the facility employed over 1000 persons at the peak of the Egina project, but the capacity was now scaled down to 131, owing to a lack of projects. The company he said has the database of past employees and would re-engage some of them if they win a new major project.”
Inglis also revealed plans to manufacture oil and gas components in Nigeria for export, leveraging the country’s strategic location to position itself as a hub for global supply.
