Business
NCDMB Boss Elucidate Role Of NCCF
Modupe Asudo
Indigenous operators and service companies in the oil and gas industry have been advised to identify with appropriate Sectoral Working Groups under the Nigerian Content Consultative Forum (NCCF) to be able to receive adequate attention on operational difficulties of whatever nature.
The Forum, established to “identify issues and responsibilities, and propose interventions that can address issues and harness opportunities,” has helped many indigenous companies to find their footing in the industry.
These were part of the explanations provided by the Executive Secretary of the Board, Engr. Simbi Kesiye Wabote, on Day 3 of the ongoing Practical Nigerian Content Conference, holding in Uyo, Akwa Ibom State while responding to a question by a participant on how challenges confronting a member could be resolved.
The NCDMB boss advised any such business owners not to hesitate to approach the NCCF.
It was a day that energy sector chief executives subjected the oil and gas industry regulatory framework and the enabling statute, Nigerian Oil and Gas Industry Content Development (NOGIC) Act, 2010, to critical evaluation, commending the implementing agency, the NCDMB, for phenomenal success in actualising objectives.
The energy chiefs were specifically interested in how what is known in industry as ‘The 7 Ministerial Regulations’ has impacted on oil and gas operations and, generally, how implementation of the Act has advanced objectives such as enhanced Nigerian content and value addition through sectoral and regional linkages.
All were in agreement with the explanation of a legal expert, Barrister Ilu Ozekhome, that “The regulations are a framework within which provisions of the Act could be enforced.” Preparatory work on the regulations had gone through several processes in which stakeholders had been fully engaged.
The Chairman, Petroleum Technology Association of Nigeria (PETAN), Nigerian Content Consultative Forum (NCCF), and member, Oil and Gas Trainers Association of Nigeria (OGTAN), Mr. Akin W. Osuntoki, noted that “The regulations have helped in building capacity” in the oil and gas industry.
He pointed out that with effectiveness and efficiency in enforcement of the regulations, indigenous companies found all the space and material support to grow their capacities and capabilities.
According to him, “The role of the NCDMB has been very strategic,” and that the Board has been “a referee and gate-keeper.”
Continuing, he added, “Not only is NCDMB able to chart in-country demand, it is able to chart regional demands, and this enables investors to plan and to expand.”
“Today,” he revealed, “PETAN is shaking hands across Africa,” a reference to Nigeria’s service companies now operating as international oil companies (IOCs) through creation of regional linkages.
Another industry chief, Dr. Timi Austen-Peters, Chairman, Fabrication, Nigerian Content Consultative Forum (NCCF) declared: “We are beneficiaries of the [NOGICD] Act,” explaining the many ways effect implementation of the statute has fostered growth among his and other oil and gas companies.
He said cost-savings arising from NCDMB’s approach in ease of doing business enabled to take advantage of business opportunities.
The Managing Director, Tenaris, Mrs. Rosario Osobase, said, “NCDMKB is doing so much in mentoring other African countries” in local content practice. DR. Pius Okigbo, Jnr, Chairman, ICT, NCCF, echoed the views of the other industry chiefs on the successes of the Board.
Other speakers commended the Management of the NCDMB for its Nigerian Oil and Gas Parks Scheme (NOGAPS), which is aimed at creating industrial parks for companies engaged in the manufacture of equipment components, spare parts and tools required in oil and gas industry operations.
The yearly Conference comes to an end on Thursday, 8 December, with site visit to Standard Institute of Technology, a subsidiary of Standard Testing and Inspection Services Limited, Uyo.
Shell Nigeria Exploration and Production Company Ltd (SNEPCo) has taken a major step towards empowering Nigerian contractors with the launch of a $3-billion Contract Finance Facility in partnership with nine leading Nigerian banks.
A company statement has it that the facility is designed to provide credit support for local contractors executing projects for SNEPCo operations and will be available in both Naira and US Dollars.
The participating banks are First Bank, Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, Stanbic IBTC, Standard Chartered Bank, First City Monument Bank and Fidelity Bank, it added.
Speaking at the signing of the Memorandum of Understanding (MoU) in Lagos, the SNEPCo Managing Director, Ronald Adams said, “the initiative reflects the spirit of the Nigerian Oil and Gas Industry Content Development Act, which is aimed at in-country value retention. Our partner banks offer capital and discipline. SNEPCo brings contracts and domiciliation of payments that de-risk lending. On their part, the contractors provide performance. Each is accountable to others, and the mutual accountability gives the arrangement its strength.”
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Also, at the signing ceremony, the Vice President Finance, Shell Nigeria, C. J. Akwaeze, said the scheme reflects Shell’s commitment to the growth of oil and gas operations in Nigeria.
The chairman of indigenous oil and gas contractor group PETAN, Wole Ogunsanya, represented by Dr Joan Faluyi, lauded the scheme as a “gateway to unlocking contractor financing issues which will also drive efficiency in contract execution.”
Representatives of the banks commended SNEPCo for the opportunity to partner on an initiative aimed at empowering contractors and assured the company of their continued support and cooperation.
Nigerian companies have continued to play key roles in supporting SNEPCo’s operation and project execution. Early this year, 43 wholly Nigerian companies took part in the turnaround maintenance exercise at the Bonga Floating Production and Offloading (FPSO) vessel out of the total of 53 companies involved.
The Contract Finance Facility is expected to further boost the capacity of Nigerian companies to deliver even more value in the operations of Nigeria’s premier deepwater producer.
The national oil company of the Republic of Congo, the Société Nationale des Pétroles du Congo (SNPC) and Dangote Petroleum Refinery & Petrochemicals (DPRP) are discussing a strategic partnership aimed at strengthening the Republic of the Congo’s supply of refined petroleum products.
The parties also have on the agenda, advancing regional energy cooperation and industrial integration across Africa, Biztellers can report.
SNPC Managing Director, Maixent Raoul Ominga, who led a delegation from his country on a visit to the DPRP, described the facility as a strategic asset for Africa and expressed the national oil company’s interest in developing a long-term partnership with Dangote.
“We have visited this remarkable refinery, which represents a major industrial achievement for Africa. The Republic of the Congo has refining capacity and we are keen to explore strategic cooperation that will help strengthen the supply of refined petroleum products while creating value for both organisations,” Ominga said.
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Discussions between both organisations, he said, focused on opportunities for collaboration in refining, petroleum products supply, energy security, industrial development, and knowledge sharing.
He praised the Dangote Group for demonstrating that Africa can successfully finance, build and operate world class industrial infrastructure, describing the refinery as an important milestone in the continent’s industrial transformation.
Ominga also commended the Group’s investments in the Republic of the Congo, particularly in the cement sector, noting that they have strengthened local industrial capacity, expanded production and improved access to construction materials.
On his part, President and Chief Executive of Dangote Industries Limited (DIL), Aliko Dangote, reaffirmed the Group’s commitment to Africa’s industrialisation through value addition, regional partnerships and investment across the continent.
“We are for Africa, not just Nigeria. Tell us what you need, and we will see how we can work together,” Dangote said.
He noted that the refinery has established a new benchmark for fuel quality in Africa by producing petroleum products that meet the highest international specifications, while improving access to cleaner fuels and reducing the continent’s dependence on imported refined products.
In the same vein, the Vice President, Oil and Gas, DIL, Devakumar Edwin, outlined the Group’s long term expansion strategy, which will increase its total refining capacity to 2.1 million barrels per day, comprising 1.4 million barrels per day in Nigeria and a planned 700,000 barrels per day refining complex in Kenya to serve East African markets.
He also disclosed plans by the Group to invest an additional US$46 billion between 2026 and 2028 across its refining, cement and fertiliser businesses as part of its drive to accelerate industrialisation across Africa.
The engagement underscores the shared commitment of SNPC and the DPRP to deepen African energy cooperation, strengthen regional value chains and promote greater self sufficiency in refined petroleum products as the continent advances towards enhanced energy security and increased intra African trade.
Also present at the meeting were Group Executive Director, Commercial, Oil and Gas, DIL, Fatima Aliko Dangote; Adviser to the President of the Republic of the Congo, Peggy Ndongo and advisers to the SNPC Managing Director, Aymar Ebiou and Norbert Mabiala.
As part of efforts to protect Nigeria’s oil revenues and energy infrastructure, the Nigerian Navy recently recovered approximately 22,870 litres of suspected illegally refined Automotive Gas Oil (AGO) in Rivers State.
It was gathered that the value of the seized petroleum product is put at about N39 Million.
The seizure, carried out under Operation Delta Sentinel, is part of an ongoing security intervention designed to disrupt illicit petroleum supply chains which the Navy says continue to undermine government earnings and legitimate operators in the oil and gas sector.
According to the Navy, personnel of Nigerian Navy Ship (NNS) SOROH acted on intelligence reports and intercepted a wooden boat transporting 36 sacks of suspected illegally refined diesel in the Orashi Forest area of Okolomade Community, Abua/Odual Local Government Area of Rivers State.
In a media statement, Director of Information, Nigerian Navy, Captain Abiodun Folorunsho, revealed that further aerial surveillance and ground searches uncovered an additional 45 sacks of the product concealed under vegetation and inside ponds, bringing the total recovery to 81 sacks containing about 22,870 litres of AGO.
Navy Captain Forunsho stated that the operation highlights the growing use of intelligence and surveillance technology by security agencies to tackle crude oil theft and illegal refining activities, which industry stakeholders say contribute significantly to production losses, environmental degradation and reduced government revenue.
According to him, disrupting the logistics networks supporting illegal refining operations is critical to improving transparency in the petroleum value chain and safeguarding investments in Nigeria’s oil-producing region.
“The recovered products and the wooden boat used for transportation were handled in line with established anti-crude oil theft procedures.
Meanwhile, the Chief of Naval Staff, Vice Admiral Idi Abbas, reaffirmed the commitment of the service to sustain intelligence-driven operations aimed at dismantling criminal networks involved in oil theft and protecting the nation’s strategic economic assets.
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