Oil
Nigerian Content: Cameron makes history, manufactures Subsea Xmas Tree
By Joseph BAMIDELE
PORTHARCOURT– History was made in the Nigerian Oil and Gas Industry on Thursday when Cameron Offshore Systems Nigeria unveiled the first made in Nigeria Subsea Christmas Tree at the Onne Oil and Gas Free Zone.
The event marked a major achievement in the drive for Nigerian Content implementation as the Christmas Tree was designed in Nigeria; the frames fabricated at Globestar yard in Warri while critical value add activities such as radiography, painting, production of anodes were also procured from within Nigeria.
Above all, the Subsea Christmas Tree which was manufactured for Total Usan’s subsea development project offshore Nigeria was assembled and tested at Cameron Base Onne.
Speaking at the event, the Executive Secretary, Nigerian Content Development and Monitoring Board, Engr. Ernest Nwapa, described the Christmas Tree as belonging to the top of technology ecosystem, adding that the accomplishment was a statement for the maturing of the Nigerian supply chain.
He remarked that the implementation of the Nigerian Content Act had started to achieve Federal Government’s aspiration of transforming the Oil and Gas sector from an importer of over 95 per cent of the industry needs a few years ago to one that manufactures inputs used in the industry and other sectors of the national economy.
Nwapa also noted that the industry which used to create millions of jobs in foreign economies had begun to generate jobs for Nigerians through the development of facilities in-country where work are being executed while indigenes of host communities were becoming active participants in the activities of the industry, thereby creating growth in knowledge, wealth and general wellbeing.
He commended Intels Nigeria Limited-the management of the Onne Oil and Gas Free Zone for the support it lent to the assembling of the Subsea Christmas Tree, noting that huge investments in infrastructure and facilities are being made in the zone to support the growth of work load the industry must place in Nigeria under the Nigerian Content Act.
He expressed hope that new jobs will justify the investments and provide the impetus to replicate similar facilities in other parts of the country.
The Executive Secretary also reported that the Equipment Components Manufacturing Initiative which the Board started to implement recently was receiving positive support from the industry.
He said, “In the next 3-5 years, Nigeria will have over 25 globally recognised Original Equipment Manufacturers making their equipment or major components here, either directly or using their Nigerian representatives.”
“From this segment alone, it is estimated that over 10,000 direct and indirect jobs can be created with a new industrial complex emerging from the exercise.
“Over 30 per cent of total procurement costs for manufactured equipment and spares will be spent in Nigeria.”
Subsea Xmas Tree
Nwapa further explained that the Board’s implementation efforts will be targeted towards ensuring the training of Nigerians to the highest international standards, supporting companies that set up facilities in Nigeria, working with the Nigerian Content Support Fund to drive down fund costs to local entrepreneurs and feeding work into the local industry being created.
In his remarks, Cameron’s, Nigerian Content Director, Mr. Sunny Nwankwo listed some of the key achievements recorded on the Tree build programme.
According to him, “Seven subsea injection Trees have been completed-one installed and six in storage.
Four Trees are work in progress and at various completion stages. Four Nigerian welders have completed training and certification to ASME-IX international level.”
The Director also recounted the impressive growth the company had recorded in the past few years.
He said, “In 2004 when we established Cameron Onne base, we occupied a mere industrial space of 10,000sqm; today it is 40,000sqm. Our staff strength was only about 50 Nigerians, today we are over 200 Nigerians. Over $30million investment in personnel development and infrastructure and tooling. We were in the past importing Christmas Trees, today we are building Subsea Trees.”
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.
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