Business
NCDMB Performs Groundbreaking Of Pipe Manufacturing Plant At Polaku
Precious Adelola
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote has performed the groundbreaking ceremony of a pipe manufacturing plant at Polaku Bayelsa State, being promoted by AS Energies Limited.
The plant would manufacture Glass Reinforced Epoxy (GRE) and Glass Reinforced Plastic (GRP) pipes and has an estimated investment outlay of about N7.04 billion ($8.8million).
Speaking at the event which held last week, the Executive Secretary commended the Management of AS Energies Limited and its subsidiary, African Star Manufacturing Services Ltd, on the successful take-off of the construction work on the pipe manufacturing plant.
He noted that the project is in line with the mission statement of NCDMB: “to promote the development and utilization of in-country capacities for the industrialization of Nigeria through the effective implementation of the Nigerian Content Act’’
He further described the ongoing construction activities as a dream come true for the Polaku community as plans for a pipe manufacturing mill in the area had been on the drawing board for a decade. He said the Polaku community and the Gbarain Clan, generally are blessed, given the concentration of strategic industries in the area and indications that others would be there.
Some of the firms that are in the locality include the Shell Gas Gathering Plant, Azikel Refinery (a modular hydro-skimming processing plant), the US$45 million Types 3 LPG Composite Cylinder Manufacturing Plant, owned by Rungas Prime Industries Limited, and Eraskon Nigeria Limited.
Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB) Engr. Simbi Kesiye Wabote performing the groundbreaking ceremony of a pipe manufacturing plant at Polaku Bayelsa State, promoted by AS Energies Limited.
Engr. Wabote said the Pipe Manufacturing Plant is a testament to the giant strides in local content drive in the country, while assuring AS Energies Ltd that the NCDMB would give due consideration to its request for support. He equally enjoined the company’s Management to explore available financing options so as to ensure project delivery on schedule.
The NCDMB boss expressed delight that AS Energies’ pipes will be produced to meet the regulatory standards such as: ISO 9001- Quality Management System Requirements; ISO 14001 – Environmental Management System Standard; & BS 18001 – Occupational Health & Safety Management System Standard,
In a welcome address, the Managing Director/Chief Executive Officer of AS Energies Ltd, Engr. Gbenga Olaniyan, said the choice of Polaku as site for the US$8.8 million project is deliberate, as the company seeks to be a development partner in the area. He expressed profound appreciation to the State Government, the NCDMB Management, and the host community for the encouragement as his company initiated moves toward actualising its plans.
Engr. Olaniyan assured that AS Manufacturing Services Ltd would integrate the community in its operational plans and activities, adding that one of its cardinal principles is to source essential materials locally in advancement of Federal Government’s drive for in-country value addition. He expressed confidence that the construction phase of the plant would be completed within 12 months, giving way to actual production.
In his own remarks, the Managing Director, AS Manufacturing Services Ltd, Mr. Augustine Taribene, described the pipe manufacturing plant as “echo-friendly,” stating that the company has a waste management policy and strategy that would keep the environment free of any form of pollution. According to him, “We want to ensure that whatever we do will not hurt the environment.” Besides, company policy is to establish a workshop to guarantee that operational tools and spares are produced locally and not imported.
According to the company, the Glass Reinforced Epoxy (GRE) and Glass Reinforced Plastic pipes are more resistant, lighter, less corrosive, and more durable than conventional carbon steel pipes in use, meaning reduced maintenance cost.
Also speaking, the Ibenanaowei of Ekpetiama Kingdom, His Royal Majesty, King Bubaraye Dakolo, Agada IV, expressed pleasure at the physical presence of the company in the community, and thanked the NCDMB for wonderful work it has done facilitating the establishment of major indigenous firms in the State.
The monarch urged the Management of the company to avoid the practices of international oil companies (IOCs) in the Niger Delta that have done very little to assist in development of host communities, but have rather been engaged in divide-and-rule and causing intra- and inter-communal crises. He assured them of the full support and cooperation of the community if they take the community along in their operations.
A spokesman for the Polaku community, Chief Kenigua Dinikpite, welcomed the company into their midst, assuring them of peace and the full cooperation of their indigenes. He expressed hope that AS Manufacturing Services Ltd would abide by NCDMB’s Community Content Guideline, which stipulates obligations of corporate organisations to host communities and expectations from communities to to create a conducive work environment for the firms.
The presence of the plant, which is the first of its type in Nigeria, is expected to facilitate technology transfer in pipe manufacturing technology and development of a variety of skills among the local population.
Savannah Energy has shared a trading update on its Nigerian operations and other markets in Africa, including up-to-date cash collections in its Nigerian business.
According to the update, made available on Thursday in Lagos, its gross production in Nigeria averaged 23.1 Kboepd for FY 2024, broadly in line with the prior year’s 23.6 Kboepd, of which 88% was gas (FY 2023: 91%).
On the update, CEO of Savannah Energy, Andrew Knott, said, “I am pleased to provide a FY trading update which demonstrates the continued progress we have made in 2024, a year which saw the highest level of cash collections ever recorded by our Nigerian business. 2025 is expected to be an exciting year for our Company: we have a large planned operational programme in Nigeria which is anticipated to enhance both our oil and gas production levels and capacity; we intend to progress our R3 East oil development project in Niger; we continue to pursue key acquisitions in the upstream oil and gas space; and we continue to seek to build our power business.
“Fundamentally, Savannah remains unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND power sectors.”
The update It also shows that it generated a Total Income of US$393.6 million in 2024, compared to FY 2023’s US$289.8 million. This consists of Total Revenues of US$258.7 million and Other operating income of US$134.9 million.
The report also shows that Savannah’s FY 2024 Total Revenues were ahead of the previously issued financial guidance of greater than US$245 million, while FY 2024 financial guidance is reiterated for Operating expenses plus administrative expenses at ‘up to US$75 million’. The company expects its FY 2024 capital expenditure to come in lower than planned (previously guided at ‘up to US$50 million’) due to the phasing of spend.
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According to the update, Savannah’s cash collections in 2024 amounted to US$248.5 million, a slight increase from the US$206 million it received in 2023. The report further shows that its cash balances as at 31 December 2024 stood at US$32.6 million, compared to the 31 December 2023 figure of US$107.0 million.
The report shows that the company’s midstream subsidiary, Accugas Limited, had as at 31 December 2024 drawn down on its NGN332 billion of the NGN Transitional Facility, with the resulting funds being converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at 31 December 2024 of approximately US$212.3 million.
The report also provided new updates on Accugas’ US$45 million Uquo Central Processing Facility (“Uquo CPF”) compression project in Nigeria, noting that its commissioning which will enable the expansion of gas production in the medium term is well underway.
The report highlighted the progress being made in the procurement process of long lead equipment in Nigeria for a potential two-well drilling campaign on the Uquo Field in H2 2025, with an additional gas development well expected to add up to 80 MMscfpd of supplemental production capacity and a potential exploration well targeting an Unrisked Gross gas initially in place (“GIIP”) of 154 Bscf (25.7 MMboe) of incremental gas resources.
The update shows that progress is also being made in the planned Savannah acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, whose principal asset is a 49% non-operated interest in the Stubb Creek oil and gas field (“Stubb Creek”), with regulatory approval and completion being targeted in Q1 2025. Following the completion of the acquisition, Savannah intends to commence an expansion programme which is anticipated to increase Stubb Creek gross production from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd.
In Niger, Savannah continues to seek to progress its 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger, while it continues to push for a potential alternative transaction structure to acquire a material stake in producing oil and gas assets in South Sudan as previously announced on 20 December 2024.
On the renewable energy front, the update shows that Savannah has up to 696 MW of renewable energy projects currently in motion, including the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. A firm believer in Africa’s transition to renewable energy, Savannah continues to target a portfolio of up to 2 GW+ of power projects in motion by the end of 2026.
The Nigerian Economic Summit Group (NESG) has projected that the country has the potential to achieve a 5.5% growth in Gross Domestic Product (GDP) if critical policy reforms are sustained.
This was disclosed on Thursday during the launch of the NESG’s 2025 Macroeconomic Outlook report.
Speaking at the event, the Chief Economist and Director of Research & Development at NESG, Dr. Olusegun Omisakin, highlighted the need for more efficient policy implementation to unlock Nigeria’s economic potential.
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“We believe at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential, the GDP to end up at 5.5 per cent, and we believe that this is achievable,” Omisakin stated.
More to follow……….
The Central Bank of Nigeria (CBN) has announced the release of the Nigerian Foreign Exchange (FX) Code, a set of guidelines designed to promote ethical conduct among authorized dealers in the country’s FX market.
In a statement, the apex bank disclosed that the official launch of the Code would take place on Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja.
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“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market,” the statement read.
The introduction of the FX Code is expected to enhance transparency, accountability, and professionalism within Nigeria’s foreign exchange ecosystem, aligning it with global best practices.
The event is anticipated to attract key stakeholders in the financial and banking sectors, as well as representatives from authorized FX-dealing institutions across the country.
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