Energy
NCDMB Parleys Chevron, Recommits To Fast-Track Approvals of Oil Industry Projects
The Nigerian Content Development and Monitoring Board (NCDMB) has restated its commitment to accelerated approvals of requests and documents submitted to it by operating oil and gas companies.
The goal, according a statement from the NCDMB was to ensure speedy development of oil and gas projects and contribute to increased oil production and improved national economy.
Biztellers reports that Executive Secretary NCDMB, Engr. Felix Omatsola Ogbe gave the assurance on Friday at the Nigerian Content Tower, Yenagoa, Bayelsa State when he received senior officials from Chevron Nigeria Limited led by the Deputy Managing Director, Cosmas Iwueze.
The ES conveyed the Board’s willingness to improve on the timelines set by the Service Level Agreement (SLA) instituted by the Board, Nigerian National Petroleum Company Ltd (NNPC Ltd) and international oil companies for shortening the contracting cycle for oil and gas projects.
He reiterated his proposal for the setting up of technical working groups (TWGs) between the representatives of the NCDMB and respective international oil firms.
The working groups could meet monthly or quarterly to evaluate the companies’ expectations from the NCDMB on their projects. The intent, he explained is “to resolve contentious issues, close all the gaps and come to an agreement before the official correspondences are received. That will ensure quick turn-around and approvals will be dealt with quickly and that will help to cut downtime.”
Emphasising the need for all oil and gas companies to comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, the ES promised that the Board will accede to cogent urgent requests from companies to avoid delays that could cause costs overruns, impact negatively on oil and gas operations and the economy at large.
He encouraged the companies to see the NCDMB as partners in progress, adding: “we want to create the enabling environment that will minimize conflicts with international oil companies (IOCs) and attract investments into the sector.
“We want to create employment opportunities for our youths and help achieve the economic objectives of President Bola Tinubu. We want to make international oil companies comfortable and reverse the exit of foreign investors because they create jobs, and we need all hands on the deck.”
Ogbe revealed that he had long and successful career with Chevron Nigeria and remarked that the hallmark of the company was teamwork.
He noted that the NCDMB operates with the same core value, hence the Board is determined to support oil companies to accomplish their operational goals. “We have to make sure that you succeed otherwise we will not be successful,” he added.
The ES confirmed that NCDMB under his watch would not emphasise the use of sanctions, rather would seek to dialogue with companies to achieve win-win situations.
“We will be flexible regarding your requests, but we all need to have open minds and look at the critical paths that will ensure that we make progress and produce effectively,” he said.
Contributing, the Director, Planning Research and Statistics, NCDMB, Isaac Yalah, commended Chevron Nigeria for supporting the Board’s development of the Nigerian Content Research Centre of Excellence at the Federal University of Technology Akure (FUTA), in Ondo State.
He affirmed that the Board will continue to collaborate with Chevron on other projects and would address any issues relating to requests for expatriate quota approvals.
Responding, Iwunze commended the ES for adopting the mantra of collaboration and pushing to increase crude oil production in Nigeria.
He highlighted the importance producing crude oil at competitive costs, noting that the primary aspiration of oil companies and the Federal Government is to ramp up Nigeria’s crude oil production volumes and shore up the revenue accruing to the national coffers.
The Deputy Managing Director emphasised the need to incentivise investments in the oil and gas sector. He explained that international oil and gas companies in Nigeria compete for capital with their sister operations in other oil producing nations.
He said, “The capital we need for big oil and gas investments is domiciled with global investors. We need to always present Nigeria as an investor friendly destination where people can come and do business.”
He also confirmed that the company was working on some major projects, relating to deepwater and Escravos gas-to liquids (EGTL) and he looked forward to receiving the Board’s support and collaboration when the projects come for consideration and approvals.
Shell Nigeria Exploration and Production Company Ltd (SNEPCo) rode on new wells, optimized reservoir and optimal facility management to produce more oil at Bonga in 2023 than the previous one, a review of operations has shown.
Biztellers reports that Nigeria’s first deep-water development produced some 138,000 barrels of oil per day (boepd) in 2023 compared to around 101,000 in 2022.
The improvement, Biztellers gathered, was driven by drilling of new wells, optimising reservoir and facility management and excellent asset management, inter alia.
Managing Director, SNEPCo, Elohor Aiboni, said, “Bonga continues to justify the investments and hard work that led to its discovery.
“The uptick in production is the result of commitment by staff, continuous improvements in production processes and maintenance and the support of the Nigerian National Petroleum Company Ltd (NNPC) and our co-venture partners – TotalEnergies Nigeria Limited, Nigerian Agip Exploration and Esso Exploration and Production Nigeria Limited.
“Working together, we will continue to power lives and deliver value to all stakeholders.”
Recall that Bonga began production in November 2005 through the 225,000-barrels-per-day capacity Bonga FPSO, anchored 120 kilometres offshore. The FPSO exported the 1 billionth barrel of oil last year.
The operations have resulted in remittance of taxes and royalties to the Government of Nigeria to finance development, development of indigenous contactors and service providers, and a wide-ranging social investment portfolio which has improved lives across the country.
The Nigerian Content Development and Monitoring Board (NCDMB) has reassured industry stakeholders that oil and gas service companies that have established capacities in the country will continue to enjoy patronage.
The Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe made this commitment on Friday in Port Harcourt, Rivers State when he led officials of the Board and Shell Petroleum Development Company of Nigeria (SPDC) to visit companies that deliver pipe coating and related services.
The team visited Brightwaters Energy Limited, formerly known as Willbros Nigeria Ltd, Solewant Nigeria Limited and Pipe Coaters Nigeria, managed by Tenaris Nigeria Ltd.
According to the ES, the visits were to assess the companies’ facilities and determine how the Board can galvanize the industry to patronise them.
He underscored the importance of getting first-hand information on in-country capabilities before making key decisions on oil and gas projects. He insisted that operating companies must support and patronise local oil and gas service companies in compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
Ogbe emphasized that activities in the Nigerian oil and gas industry must be used to create employment opportunities for the nation’s teeming youths and help to resuscitate the economy, in line with the aspirations of President Ahmed Bola Tinubu.
The Chief Executive Officer of Brightwaters Energy Limited, Scott Gregory thanked the ES for leading the visit while highlighting that Brightwaters carried out Nigeria’s first pipe coating in 1962.
He recalled that the facility had 3,000 employees some years back, executing various spheres of oil and gas projects. He conveyed the management’s aspiration to return the
firm to those high-performance levels and sought the Board’s support to win oil and gas projects that would resuscitate the sprawling facility.
“We feel that we can be a positive contributor to Nigeria through the capacities that we have. We want to bring real, true value to the table,” he added.
He admitted that the coating facility had suffered downtime, but assured that the plant would be up and running within 60 days of the award of a new contract.
The Chairman of Tenaris Nigeria, Dr. Ernest Nwapa welcomed the NCDMB’s team to PCNL’s facilities.
He commended the efforts made by the agency to push local content in the industry, attributing it to the good culture that had been established at the Board over the years.
Nwapa, who was the pioneer Executive Secretary of the NCDMB expressed delight that some of the oil and gas projects that had been pending for nearly ten years were now being developed and expressed hope that existing local capacities would be maximized in the execution of those projects.
The team was taken around the company’s facilities and shown the various equipment of PCNL in readiness for the award of new contracts.
Nwapa pledged the commitment of the company to meet the expectations of clients as well as allow them to participate in the supervision of the work in their factory.
The PCNL facility covers an area of 160,000 m2 in the Onne Free Trade Zone. The company offers Anticorrosion, CWC, Thermal Insulation, Internal and Bends Coating plants as well as Double Jointing and Anode Installation Facilities.
At Solewant Group, an EPCI and Pipe Coating Company, the NCDMB delegation was shown round the company’s facilities as well as the new investments, such as the 5mega watts generators, procured to guarantee power supply to the facility.
Accompanying Engr. Ogbe on the facility visits were the Director Projects Certification and Authorization Division (PCAD), Engr. Abayomi Bamidele, General Manager PCAD, Engr. Maurice Iwhiwhu, Special Technical Assistant (STA) to the Executive Secretary, Engr. Mofe Megbele, Deputy Manager, Corporate Communications, Mr. Obinna Ezeobi, and other staff members of the Board.
The SPDC team was led by the General Manager, Nigerian Content Development, Mr.Lanre Olawuyi.
The NNPC Exploration and Production Limited (NNPC E&P Ltd), NNPC Ltd’s flagship upstream subsidiary, and Natural Oilfield Services Ltd (NOSL), a subsidiary of Sterling Oil Exploration & Energy Production Company Ltd (SEEPCO), has announced the successful commencement of oil production at Oil Mining Lease (OML) 13 in Akwa Ibom State, Nigeria.
Biztellers reports that the production commenced on the 6th of May 2024 with 6,000 barrels of oil with expectations to be ramped up to 40,000 barrels per day by May 27th, 2024.
The first oil flow from OML 13 is a historic milestone in the partnership between NNPC E&P Ltd and NOSL, highlighting their dedication to driving growth and development in Nigeria’s oil and gas sector, which remains a vital component of the nation’s economy.
The achievement does not only signify the culmination of rigorous planning and execution by the teams involved, but also represents a new era of economic empowerment and development opportunities for the host communities.
Furthermore, for Nigeria, the first oil from OML 13 holds some significance as it contributes to the country’s efforts to increase its oil production capacity, which is crucial for meeting domestic energy needs and driving economic growth.
The NNPC E&P Ltd and NOSL partnership is also committed to operating in a manner that is safe, environmentally responsible, and beneficial to the local communities.
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