LOCAL CONTENT
Bukola Adubi
Award of NLNG Train 7 to SCD Will Deepen Local Participation, Reinforce Local Cable Supplies – Adubi, Miccom Cables
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s the Nigerian petroleum industr y expects Total E &P to reach a F inal I nve stment D eci sion (F I D) o n t h e $10 b n N L N G Train 7 project by the end of 2 019, experts have expressed optimism that the award of the constr uction contract to SC D Group will deepen local content contribution to the project. The SCD J V consortium comprising the Italian company, S a i p e m , J a p a n’s C h i y o d a C orporation and South Korea’s Daewoo, would undertake the eng ineer ing, procurement, and construction of the pr oje ct. Ta k i n g a cue f r om the verifiable in-countr y value retention ev idence d i n t he E g i na project, now en ha nced by the ser vice level agreement (SL A) signed by the company w it h t he Niger ia n C ontent D evelopment a nd Mon itor i n g Board, NCDMB, it is believed that the tra in 7 project w i l l surpass industry expectations in terms of local participation, said Bu kola Adu bi, t he M a na g i n g Director of Miccom C ables on the sidelines of Power Nigeria conference which held in Lagos
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Majorwaves Energy Report
recently. She added, “ser v ice a nd ma nufactur ing compa nies have i nve sted re sou rce s, a nd g row n technica l capacities in preparation for these projects.
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We shall see a multiplier effect across several sectors when the project is completed in 2023”.
But ahead of that, indigenous manufacturers of cables like us have stepped up to the challenge to ensure the ca ble needs of projects like these are met by local supplies.” It i s e s t i m at e d t h at , at i t s peak, the project will provide over 4 0,0 0 0 d i re ct job s a nd over 10 0,0 0 0 i nd i re ct a nd i n du c e d e mp l oy m e nt o f ove r 10 0,0 0 0 workers C ommending the NCDMB and the NOGICD Act, Adu bi noted that, ever y op e r ato r, a s a r e s u lt o f t he Board’s sensitisation, has gotten the ba sic k nowledge of its obligations to Nigerian content development. She stated that, “ t he robu st act iv it ie s of t he NCDMB ensures that all players are conscious of the provisions of the Act”. Though difficult to
OCTOBER 2019, Vol 2 No 7
track, the industry’s maintenance works needing low, medium or even high voltage cables can be ha nd led by i nd igenous f i r ms, A du b i a s s e r te d. P r ov i d i n g a n update on the train 7 project during the Total’s Investor Day in New York recently, A rnaud Breuillac, Total’s President of Exploration and Production, said the construction at the Bonny Island plant would increase its capacity, adding seven million tons per year (tpy) of gas to the existing 22 million tpy. NLNG is a joint venture company owned by Nigerian National Petroleum Corporation (49 percent), Shell (2 5 . 6 p e r c e n t), To t a l (1 5 percent) and Eni (10.4 percent).
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