Connect with us

Energy

NOGICD Act, Not Weakened by Presidential Orders on Oil Sector – NCDMB

Published

on

NCDMB Emerges Best MDA In Ease Of Doing Business Ranking

The three Executive Orders issued by President Bola Ahmed Tinubu on the Oil and Gas Industry in March 2024 did not erode the relevance of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act on the operations of the oil and gas industry, the Nigerian Content Development and Monitoring Board (NCDMB) has said.

This was one of key messages from the Local Content Masterclass and panel discussion, held on Monday at the African Energy Week, which started in Cape Town, South Africa. Discussions at the panel highlighted Nigeria’s local content’s milestones and processes, provided local lessons for other African oil and gas producing countries, clarified misconceptions, as well as positioned Nigeria’s oil and gas industry for investment.

The panelists included the Director Capacity Building, Engr. Abayomi Bamidele, General Manager Monitoring and Evaluation, Mr. Silas Omomehin Ajimijaye, and General Manager, Nigerian Content Development Fund (NCDF), Ms. Fateemah Mohammed, and the session was moderated by the General Manager Corporate Communications, NCDMB, Dr. Obinna Ezeobi.

Giving insight into the Presidential Directives, Engr. Bamidele observed that some oil and gas stakeholders grossly misinterpreted the Presidential Directives to mean that the NOGICD Act had been relegated or sidestepped and they no longer need to comply with the provisions of the law. “The Special Adviser to the President on Energy had to clarify that the Presidential Directives did not set aside local content. They only mandated that existing capacities must be patronized and middlemen must be excluded from the contracting process.”

The three Executive Orders are the Presidential Directive on Local Content Compliance, Presidential Directive on Reduction of Petroleum Sector Contracting Cost and Timelines and Presidential Directive on Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.

Bamidele confirmed that NCDMB had streamlined its contracting strategies to align with the Presidential Directives, collapsed its touchpoints in the contract approval process from 9 to 5, thereby contributing to the shortening the industry’s contracting cycle, reduction of the cost of projects and catalysing new oil and gas projects from operating oil and gas companies.

He announced that qualified international service companies can now be awarded the Nigerian Content Equipment Certificates (NCEC), to facilitate their direct participation in deepwater operations in the Nigerian oil and gas industry, as provided in the NOGICD Act. This policy will attract investments into the sector, and is consistent with the Presidential Directives, he explained.

On Board’s strategy for capacity development for new oil and gas projects, he said plans are afoot to conduct trainings in skill areas that are in a high demand in the sector. He underlined the need to always streamline capacity building initiatives with requirements and changing dynamics in the industry.

The Board is also committed to developing critical infrastructure such as the Brass Island Shipyard with support of the NLNG, as well as completing and operationalizing the Nigerian Oil and Gas Parks at Odukpani, Cross River State and Emeyal-1 in Bayelsa State, he hinted.

Counselling sister Africa countries, Engr. Bamidele noted that local content and capacity building strategies must be country-specific, and policy makers must understand the mindset and skillsets of their nationals. He further advised that local content policies and capacity building models must be relevant and applicable to the host country’s technological, educational and manpower capacities.

While making his comments, the General Manager Monitoring and Evaluation, Mr. Silas Omomehin Ajimijaye outlined the robust mechanism the Board deploys in monitoring companies’ execution of oil and gas projects, ensuring compliance with the provisions of the NOGICD Act, and retaining significant value in the economy.

On the impact of divestment of oil and gas assets on Nigerian content compliance, he stated that the transfer of assets to indigenous operators had not impacted negatively on compliance. This is because the Board sustained the compliance protocols it had established with the previous owners. However, the Board, is ready to support successor companies to navigate challenges they might have with compliance, he added.

Speaking further Ajimijaye highlighted the importance of robust research and development initiatives to achieving sustainable local content development. He indicated that NCDMB had developed an R&D roadmap and collaborates regularly with operating companies, service firms, the academia, and other relevant institutions.

Currently, NCDMB has established six centers of excellence in key universities across six zones of the country, while Research and Development Fund has been deployed to support commercialization of viable projects, with 15 research ideas and inventions currently supported to ensure their successful development, he added.

In her contributions, the General Manager, NCDF, Fateemah Mohammed explained that the Nigerian Content Intervention Fund is a dedicated finance scheme that provides single digit financing to Nigerian service companies, enabling them to grow capacities and play key roles in the oil and gas industry.

ALSO READ: Okpebholo Hails Edo Teachers on World Teachers’ Day

Giving insight into the seven products of the NCI Fund, she dwelt on the Community Contractors Fund, which is a N50bn finance scheme designed for contractors in local communities, whereby they can assess up to N100 million, at single digit to execute contracts in the oil and gas industry and grow the local economy. Another unique product is the US$20m Women in Oil and Gas Intervention Fund managed by Nigeria-Export-Import Bank, for deepening the capacities and capabilities of women entrepreneurs and industrialists to fully participate in the Nigerian oil and gas industry.

Recommending similar funding schemes to other African countries, Mohammed disclosed NCDMB’s aspiration to grow the NCI Fund and collaborate with other financial institutions to unlock larger projects and enhance skills development of the populace.

15 Comments
0 0 votes
Article Rating
Subscribe
Notify of
15 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
drover sointeru
10 months ago

Nice read, I just passed this onto a friend who was doing a little research on that. And he actually bought me lunch because I found it for him smile So let me rephrase that: Thanks for lunch!

tlover tonet
10 months ago

Thank you for any other great post. The place else may just anybody get that kind of info in such a perfect approach of writing? I have a presentation next week, and I am at the look for such info.

the brain song reviews
9 months ago

You really make it seem so easy with your presentation but I find this topic to be actually something which I think I would never understand. It seems too complex and very broad for me. I am looking forward for your next post, I will try to get the hang of it!

gelatin trick for weight loss

I was reading some of your posts on this site and I conceive this website is really instructive! Retain putting up.

gelatin trick recipe
9 months ago

You should take part in a contest for one of the best blogs on the web. I will recommend this site!

Nervital
9 months ago

I am extremely inspired along with your writing talents and also with the layout in your blog. Is that this a paid subject matter or did you modify it your self? Either way stay up the excellent quality writing, it is rare to see a nice blog like this one nowadays..

bhai 88
9 months ago

There is noticeably a bundle to know about this. I assume you made certain nice points in features also.

Ethical hacking career opportunities

Magnificent beat ! I wish to apprentice while you amend your web site, how can i subscribe for a blog website? The account aided me a acceptable deal. I had been tiny bit acquainted of this your broadcast provided bright clear concept

landmark recovery
9 months ago

Well I sincerely liked reading it. This subject provided by you is very effective for proper planning.

fdertol mrtokev
9 months ago

I want to voice my admiration for your kind-heartedness in support of people that must have guidance on in this area of interest. Your real commitment to passing the message all over turned out to be exceedingly helpful and has in every case encouraged most people just like me to arrive at their dreams. The insightful suggestions denotes a whole lot a person like me and extremely more to my mates. Best wishes; from everyone of us.

princeton house behavioral health

I love your blog.. very nice colors & theme. Did you make this website yourself or did you hire someone to do it for you? Plz respond as I’m looking to design my own blog and would like to know where u got this from. appreciate it

bakom
8 months ago

Pretty nice post. I just stumbled upon your blog and wished to say that I have really enjoyed browsing your blog posts. In any case I will be subscribing to your feed and I hope you write again very soon!

zaborna torilon
8 months ago

I’ve been absent for a while, but now I remember why I used to love this web site. Thank you, I¦ll try and check back more often. How frequently you update your web site?

Energy

Nigeria-Libya Gas Pipeline as FG Eyes New LNG Markets

Published

on

There are indications that the Nigeria-Libya Gas Pipeline would go from the drawing board to reality, as it has emerged as a major option to help Nigeria break into new markets for her gas reserves.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this at Gastech 2026 in Bangkok, Thailand, during a high-level engagement with global energy companies, investors and governments on expanding Nigeria’s gas production, infrastructure, domestic utilisation and export markets.

The renewed push for the Nigeria-Libya pipeline topped the agenda for the meeting between Ekpo and Libya’s Minister of Oil and Gas, Dr Khalifa Rajab Abdulsadek.

Under the proposed framework, Nigeria and Libya are expected to explore a Memorandum of Understanding (MoU) and establish a joint technical team to assess the feasibility, financing, infrastructure requirements, security considerations and commercial viability of the project.

READ ALSO: ‘Obi Has Nowhere to Hide’ — APC Campaign Council Tackles Peter Obi Over Anambra Record

The NNPC Limited is expected to spearhead Nigeria’s participation in the bilateral initiative. If developed, the pipeline would provide another potential route for transporting Nigerian gas through North Africa to European markets, giving Nigeria an additional platform to monetise its gas resources beyond existing LNG channels.

According to Ekpo, the Federal Government was determined to create an investment environment capable of attracting the capital, technology and strategic partnerships required to convert the country’s gas reserves into economic growth, industrial development and jobs.

“Nigeria is open for business. We have put in place the right fiscal policies and operating environment, and the security of investors and their investments is guaranteed,” he said.

He revealed that the NNPC Limited would play a central role in translating Nigeria’s bilateral energy engagements into commercially viable projects, strategic investments and sustainable development.

The minister’s engagements also revealed plans by major industry players to significantly ramp up domestic gas production and infrastructure.

Continue Reading

Energy

Gas Industry Must Commercialise Methane – NLNG

Published

on

Gas producers must stop treating methane reduction as an environmental cost, because methane released into the atmosphere represents lost gas, lost revenue and lost energy that could otherwise be recovered and sold.

The Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG) Adeleye Falade, made the declaration during a panel titled “Capturing the Lost Opportunity: Driving Global Alignment on Methane Abatement Across Natural Gas Supply Chains,” at the Gastech 2026 Exhibition and Conference in Bangkok, Thailand.

READ ALSO: Spike in Petrol Price Moves NLC to Demands Emergency Palliatives

Taking from the company’s experience, he highlighted that investments in methane abatement could pay for themselves while improving plant efficiency and asset reliability.

The NLNG CEO said the commercial value of recovering lost gas should become a central part of the global industry’s approach to methane management.

“Every tonne emitted is lost product, lost revenue and lost energy; gas we could have sold. Every molecule of methane avoided is both an emissions reduction and a recovered energy resource.”

According to him, the NLNG’s new boil-off gas compressor and start-up gas recovery project demonstrate the business case for methane reduction, with each project expected to deliver methane reductions of about 10–15 percent while also recording positive projected net present values. “The most compelling business case is the simplest one: the projects that cut our methane also pay for themselves.

“The same discipline that reduces methane also improves asset reliability and plant efficiency. The returns show up in more places than the emissions ledger,” Falade said.

He added that the starting point for methane abatement was credible measurement of gas losses, which enables companies to identify where methane is being lost, channel investment towards the right interventions and independently verify the results.

According to Falade, the NLNG had demonstrated that producers in developing economies could meet globally recognised standards for emissions measurement and reporting, despite infrastructure and other constraints.

He disclosed that the NLNG had achieved Gold Standard recognition under the Oil and Gas Methane Partnership (OGMP) 2.0 and became the first company in Africa to attain Level 5 methane emissions reporting.

Its measurement, reporting and verification system is independently assured by DNV in line with ISO 14064.

The NLNG’s methane-management programme includes site-wide optical gas imaging, a structured Leak Detection and Repair programme, as well as phased deployment of continuous monitoring and real-time emissions dashboards across its plant and vessels.

Falade said methane reduction was also being incorporated into the design of Train 7, which is expected to raise the NLNG’s LNG production capacity from 22 million tonnes per annum to 30 million tonnes.

The commercial case for emissions abatement was not new to Nigeria, he added, pointing to the NLNG’s longstanding role in converting gas that would otherwise have been flared into a marketable product.

According to him, the company’s activities have contributed to reducing Nigeria’s gas-flaring rate from above 65 percent to below 20 percent.

Beyond its own operations, Falade revealed that the NLNG was extending methane-management requirements across its supply chain through its Scope 3 Advocacy Plan.

The company engages feed-gas suppliers and contractors to measure, disclose and reduce emissions, while verified upstream emissions data and emissions-related criteria are incorporated into supplier selection and evaluation.

Falade also called for greater consistency in methane measurement and reporting requirements across jurisdictions, arguing that divergent standards make enforcement uneven and complicate meaningful comparisons between producers.

“The industry does not need weaker standards; it needs stronger, shared ones backed by real measurement,” he said.

On the tension between emissions reduction, energy access and affordability, Falade said developing economies should not be forced to choose between economic development and climate action.

“Developing economies cannot be asked to choose between economic development and emissions reduction. Both must progress together,” he said.

Other panellists were Zubin Bamji of the World Bank, Niels Dijksman of Brunei LNG and Hiroyuki Mori of JOGMEC.

The session was moderated by energy economist Dr Carole Nakhle of Crystol Energy.

Continue Reading

Energy

NLNG’s $10 Billion Train 7 LNG Project to Begin Operations by 2027

Published

on

Expectations are high that the $10 billion Train 7 project of the Nigeria Liquefied Natural Gas Limited (NLNG) would go into operation by the end of 2027.

Managing Director of NLNG, Adeleye Falade, made the disclosure on the side-lines of the Gastech conference, yesterday, in Bangkok, Reuters reported.

This is part of a grand strategy by the company to raise production and address persistent gas supply constraints.

READ ALSO: Banks Caution Against Scammers over Dangote IPO

Train 7 project, located on Bonny Island, Rivers State, is expected to increase NLNG’s production capacity to 30 million metric tonnes per annum (mtpa), from the current 22 mtpa.

The project has suffered repeated delays, including disruptions associated with the COVID-19 pandemic and the Russia-Ukraine war.

Falade also disclosed that NLNG remained under a force majeure declared in 2022 following widespread flooding that disrupted gas supplies to the company.

According to him, the company would lift the force majeure when it reaches a 90 per cent utilisation rate, with the plant currently operating at between 82 per cent and 83 per cent.

“We still have a delta of about 15 per cent that we need to close,” Falade said. “Operationally, we are able to do that, but our biggest constraint is gas supply, and we’re working with all the relevant people, including the government, to be able to get more gas to flow into the plant,” he added.

He said NLNG was focused on meeting its existing contractual obligations to buyers while the company worked to increase production.

Falade added that interest in additional LNG volumes and spot cargoes had increased after exports through the Strait of Hormuz were curtailed by the Iran war.

“People are looking at more diversified, reliable sources of supply,” he said.

“Our priority currently is to continue to make sure that we fulfil our obligations to our existing customers and maximize as much production opportunity as possible that we have,” he added.

The NLNG is majority-owned by the Nigerian National Petroleum Company Limited (NNPC Ltd), while Shell, TotalEnergies and Eni are its international partners.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

15
0
Would love your thoughts, please comment.x
()
x