10 Year Roadmap: NCDMB completes 20 short terms initiatives

...signs deal for 2 Gas Plants, Base Oil Facility

Th e Ni g e r i a n C o n te n t D e v e l o p m e n t a n d M o n i t o r i n g B o a r d ( N C D M B ) h a s completed the implementation of 2 0 shor t term initiative s a s pa r t of the 10 -Yea r Nigerian Content Strategic Roadmap.

T h e E xe c u t ive S e c r e t a r y of NCDMB , E ng r. Sim bi Ke siye Wabote stated this a t t h e opening of the 9 t h e di tion of t h e P r a c t i c a l N i g e r i a n C o n t e n t Wo r k s h o p h e l d i n t h e c o n f e r e n c e h a l l of t h e new NCDMB headqua r ter s in Ye n a go a , B ay el s a S t a t e , i n D e c em b e r, w i t h t h e t h em e , “Leveraging Local Expertise for Market Growth and Expansion”. He confirmed that 25 initiatives were planned for the fi r st two yea r s of the roadmap and the du ration of five item s would be ex tended, adding that the percentage of Nigerian Content implementation had moved from 26 percent to 30 percent in the la st two yea r s of the 10 -yea r plan. He stated that NCDMB will mark its 10 th year anniversary i n 2 02 0 a nd would orga ni ze

a strateg y review se s sion and “evaluate the remaining eight yea r s of the roadmap to put i n plac e ne c e s sa r y mea su re s t o m e e t t h e 7 0 p e r c e n t Nigerian Content ta rget by the y e a r 2 0 2 7.” A s p a r t of h i s welcome speech, the E xecutive Secretary signed agreements for NCDMB’s pa r tner ship s in the establishment of two ga s plants and a base oil facility.

T h e f i r s t a g r e e m e n t w a s wi t h D r. Ma son O g henejo bo of Bu nor r I nteg rate d E nerg y L td for t he e s ta bli shment of 4 8 , 0 0 0 l i t e r s/d a y B a s e O i l P r o d u c t i o n F a c i l i t y, t o b e located at Greater Port Harcourt A rea, Rivers State. The second ag reement wa s with Mr. Lanre Runsewe of Runga s Limited for the e sta bli shment of 40 0,0 0 0 per day Ty pe -3 LPG Cylinder s m a n ufa c t u r i n g pl a n t , to b e developed at Polaku, Bayel sa S t a t e , i n p a r t n e r s h i p w i t h NCDMB . T he thi rd deal wa s executed with Eng r. C hi buike Achigbu of Chimons Gas Ltd for the establishment of 168,000MT per annum LPG Loading and

R e c e i v i n g Te r m i n a l , t o b e located at Koko, Delta State. Wa bo te ex p re s s e d hop e t ha t the pa r tner ship s would help to rever se capital flight cur rently a ssociated with these products, with the estimated turnover put at $360million per year.

H e t h a n k e d t h e G ov e r n i n g Council of NCDMB under the chairmanship of the Minister of State for Petroleum Resources, C hief Timipre Sylva for giving approvals for the par tnerships. Giving detailed repor t s of the Boa rd’s achievement s , Wa bote r e p o r t e d t h a t N C DM B h a d s e c u r e d a p p r o v a l s f o r t h e awa rd of nine contrac t s f rom the Federal E xecutive Council t o p r o g r e s s w o r k o n t h e development of oil and gas parks in A kwa I bom , Bayel sa , a nd C ro s s River state s, to domicile and domesticate manufacturing in-country. He mentioned that the Board took up equity in the 12,000 barrels per day AZIKEL H y d r o s k i m m i n g M o d u l a r i n Bayel sa S tate af ter t he fi r s t pa r tner ship with Walter smith Modular Refinery in Imo State.

He al so stated that 2 0 ma rine cadets sponsored by the NCDMB a r e c u r r e n t l y o v e r s e a s t o a c q u i r e s e a - t i m e e x p e r i e n c e i n i n t e r n a t i o n a l w a t e r s i n S i n g a p o r e , A u s t r a l i a , U S A , Malay sia , and C hina . He added that “we have set up additional 6 ICT labs in various secondary s chool s i n t he la s t one yea r, bringing the total to 24. We have trained over 1,0 0 0 teacher s a s par t of the Board’s intervention i n S T EM e du c a tio n .” Giv i n g in sight into the Boa rd’s plan s for yea r 2 02 0, the E xe cutive S e c r e t a r y s a i d t he r e w i l l b e roll-out of supplier development prog ram s u sing ou r indu strial pa rk s a s a platform, including synergies with NCEC applicants.

He s ai d t he B oa r d w ill a l s o take up 40 ma rine cadet s for seatime training; upg rade two vocational education institutions a n d s e t-up f ive IC T L a b s i n secondary schools. NCDMB will also train another batch of 1,000 teacher s i n ST EM E ducation . Other plans include the planned commi s sioning of 5,0 0 0 ba r rel s per day Walter smith Mo dula r Refinery initiative, completion o f t h e N C D F R e m i t t a n c e F o r e n s i c A u d i t v i s i t a t i o n s and w rap up of the tripa r tite reconciliation se s sion s by 31st D e c e m b e r 2 0 1 9 . S p e a k i n g fur ther, Wa bote confirmed that NCDMB i ntend s to roll-out a L o cal content implementa tion re cog ni tion p rog ram i n 2 02 0

s che dule o r sho d dy jo b s . We mu s t t herefore take prac tical step s to en su re that we cu r tail t h e v a r i o u s e l e m e n t s t h a t contri bute to the high co st of pro duc tion”. He aver re d t hat the enti re country wa s looking up to the sec tor for increa sed revenue earnings to fund annual b u d g e t s a n d d evelo p c r i t i c a l infrastructure.

Majorwaves Energy Report JANUARY 2020, Vol 3 No 1 17 and implement the ha rmoni zed f ramewo rk fo r Ma ri ne Ve s s el Categorization. He also repor ted that NCDMB had finalized power supply a r rangement for it s new Headqua r ter s building and the Oil and Ga s pa rk at Emeyal-1, B ay e l s a S t a t e a n d a p ow e r provider for the park in Calabar ha s al so been identified. With r e ga r d s to t he S e c to ria l a n d Regional Ma rket Linkage s , he stated “the Board has been coopted by the Federal Government into the Local Content Working C om m i t t e e of t h e 3 , 0 5 0MW Mambilla Hydro Electric Power Plant to link the capacitie s and capa bilitie s built in the oil and ga s sec tor into the delivery of the multi-billion dollar project. “In the coming yea r, we intend to extend our collaboration with sister agencies and other MDA’s to enhance enduring partnerships that suppor t the patronage of l o c a l i n v e s t o r s .” D e l i v e r i n g hi s Mini sterial Add re s s , C hief Timip r e Sylva , cha rge d lo c al v e n d o r s to d el i v e r p r em i u m services and suppor t the Federal Government’s strateg y of u sing L o cal C ontent to d rive dow n the cost of crude oil production, increa se the contribution of the oil sector to the Gros s Domestic P roduc t (GDP) and g ua rantee the secu rity of oil produc tion. He s ai d o p e ra to r s “mu s t no t allow Local Content to become an excu se for co st over r un s , sl i p p a g e s i n p r oj e c t d el ive r y T he Mini ster al so commended NC DM B fo r t he develo pme n t of it s 17 s torey headq ua r ter s buildi ng , wit h a World Cla s s C o n f e r e n c e C e n t r e r i g h t i n the hea r t of the Niger Delta , executed by a wholly Indigenous Construction Company, Megastar Te c h n i c a l a n d C o n s t r u c t i o n Company Limited. He thanked P re sident Muhammadu Buha ri a n d t h e F e d e r a l E x e c u t i v e C o u n c i l fo r g r a n t i n g t i m el y approvals which helped to speed up the completion of the project. According to him, the building serve s a s a strong at te station of M r. P r e si d e n t ’s l ov e a n d commitment to the development of the Niger Delta Region. He further charged multinational oil companie s and thei r indigenou s counter pa r t s to take a cue from NCDMB and engage more local contrac tor s in va riou s projec t s in the oil and gas industry. “ In the coming year, we intend to ex tend o u r c o l l a b o r a t i o n with si ster agencie s and other MDA’s to e n h a n c e e n d u r i n g p a r t n e r s h i p s t h a t support the patronage of local inve stors.”

Wabote commissions TECON’s Rigs, Visits Xirea Apparel

18 Majorwaves Energy Report JANUARY 2020, Vol 3 No 1 T he Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has commissioned two Snubbing Rigs/Hydraulic Workover Units – ISS 340k and ISS 460k – acquired by TECONN IGERBLOS SOM Group, an indigenous oilfield services company. The company executes several activities, including Oil Well Fishing, Casing and Tubing Running, Oil Well Snubbing/Hydraulic Workover Service s, Machine shop/Tool Fabrication and many others. The company had provided services for multinational companies within Nigeria and in countries such as Congo and Ghana. Speaking at the event, the Executive Secretary commended TECON for acquiring the assets despite the huge capital outlay and skills required to operate them safely. He noted that about 300,000 barrels of crude oil are locked-in and require well intervention techniques such as snubbing to unlock. He expressed the Board’s excitement that the unique area of need had got the attention of a local company to help access some of the industry’s locked-in production. He emphasized that asset ownership represented one of the key yardsticks used by NCDMB to define a Nigerian company as contained in the provisions of Nigerian Content Act. “Acquisition of these types of assets buttresses the point that there are genuine Nigerian businesses that are not middlemen or commission agents but are truly on ground and are positioned to offer top-notch services in-country,” he added. Wabote also hailed the company’s expansion plans, including the development of an Energy Park at the Oginigba Waterfront, which will serve as multi-service center for Fabrication, Supply Base, Marine Construction and Machine shop. He stated that “the Board is proud to identify with this type of growth mindset because it tallies with our

10-year strategic roadmap aimed at increasing the level of Nigerian Content in the oil and gas sector from current levels to 70% by the year 2027.” In a related development, the Executive Secretary visited Xirea Apparel in Port Harcourt as part of the efforts to assess in-country capacities in the oil and gas sector.

Speaking during the visit, the Chief Executive Officer, Aerix Group, Mr. Obinna Frederick Eneh said the company was established to “serve independent clothing brands, organizations such as the Military, Oil & Gas companies and E-commerce retailers by satisfying their garment sourcing and production requirements”. In his response, the NCDMB chieftain commended the company for employing young Nigerians, especially women and training them in the business of industrial garment manufacturing.

Executive Secretary lays foundation for PE Energy Centre for Excellenc

Th e E x e c u t i v e S e c r e t a r y, Ni ge r ia n Content Development and Monitoring Board ( N C D M B) , E n g r . S i m b i Wa b o te r e c en tly p e rfo r me d the foundation laying of PE Energ y C entre for E xcellence i n P o r t H a r c o u r t , R i v e r s State.

T he facility which seat s on a 10 , 8 0 0 s q ua r e me te r s of l a n d w i l l p r ov i d e s e r v i c e s s u c h a s Va lve s a s s em bl i n g & A u t o m a t i o n , H I P P S A s s em bl y a n d I n t e g r a t io n , Metering Skid s A s sem bly and Cali bration, Automation and C o n t r ol S olu tio n s , P r o c e s s Solutions, Integrated Services including packaged substations & Control Panels. Speaking at the o cca sion , the E xecutive S e c r e t a r y c o m m e n d e d P E E n e r g y l i m i t e d f o r t h e i r cont ri bu tion to t he g row t h of the Nigerian Oil and Ga s sec tor and the g row th of the Nigerian Content.

He f u r t he r s ta te d t ha t t he Center of Excellence will also a s s em bl e E a rly P r o d u c tio n Facilitie s (EPF ’s) and Mobile P roduc tion Unit s (MOPU’s) w h i c h a r e v e r y e s s e n t i a l i n ou r cou nt r y ’s a s pi ra tion t o i n c r e a s e o i l a n d g a s production. According to him, “Instrumentation Control and Automation i s a key a rea of intere st to the Boa rd and ha s a very wide application beyond t h e oi l a n d g a s i n d u s t r y. W h e n c om pl e te d a n d f u l ly operational would be utili zed a s a C enter of E xcellence for Human Capacity Development in the area of Instrumentation Control and Automation”. He al so applauded the company f o r c o n t r i b u t i n g t o t h e re su rgenc e of Tra n s A ma di a s an indu strial a rea where i nve s to r s s houl d move i n to for their businesses to thrive.

Wa b o t e a p p r e c i a t e d t h e I n t e r n a t i o n a l O p e r a t i n g Companies for their support in the succes sful implementation

of N i g e r i a n C o n t e n t a n d encou ra ge d t hem a nd ot her Oil and Ga s service providers t o s e e i n v e s t m e n t s a s a mean s of co st reduc tion and enhancement of the reliability a n d a v a i l a b i l i t y of t h e i r production facilities.

I n h i s r em a rk s , t h e C h i ef E xecutive Officer, PE Energy Limited, Eng r. Daere A kobo commende d NC DMB for i t s s t ra te gic implementa tion of t h e Ni g e r i a n O i l a n d G a s Industry Content Development (NOGICD) Ac t 2 010, noting t h a t PE E n e r g y l i m i te d i s a Ni g e r i a n w h o l l y ow n e d e s t a b l i s h m e n t . H e s o u g h t for more suppor t f rom other international oil and servicing companies in the development of t he fa cili t y s o i t woul d b e come a hu b fo r O ri gi nal E q u i p m e n t M a n u f a c t u r e r s (OEMs).

Capacity Building Strategies must evolve with tech trends-Wabote

The Nigerian oil and gas industry needs to modernize i t s h u m a n c a p a c i t y development frameworks and strategies to meet technological changes and emerging trends in our industry and society. The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote gave the advice recently at the 2019 human capacity development workshop organised by the Board in Port Harcourt.

He remarked that massive technological changes were taking place in the industry, including the operation of FPSOs with zero personnel on Board, and robots carrying out underwater inspections and repairs. He added that “the Board wants to champion the industry readiness for change by implementing the human capacity development initiatives from this moment. We need to sow the seeds today so that we will reap the benefits 10-years from now.” He sought for the collaboration of the stakeholders, noting that the Board cannot do it alone.

to modify our training curriculum. The design, mode of delivery, and the desired outcome need to be looked into. The key outcomes should be employability and entrepreneurial skills. It should be such that the training will impact skills that employers are in dire need of. “It should also be possible for the trainee to choose to be an entrepreneur based on the knowledge acquired at our project-based or direct-intervention trainings.” He also harped on the need to provide learning infrastructure for the critical skill areas, a good example being the Board’s partnership with Aker Solution in the development of Subsea Learning Center in Yenagoa. He stated that “we need something similar for Instrumentation, Control and Automation. We look forward to delivery of our collaboration with PTDF on the completion and utilisation of the Skill Acquisition Center here in Port Harcourt.” Wabote also charged the industry to re-ignite the passion and respect for Vocational Education in the country and accord respect to vocational skills such as scaffolders, welders, carpenters, and the rest.

building, the Executive Secretary said the Board have so far delivered close to 9million training manhours across the project-based and direct intervention training. He also confirmed that NCDMB have put in place 60-20-20 training model, in which 60 per cent of the Board’s and industry’s training resources and efforts will be devoted to providing young Nigerians with specialized skills they need to secure employment.

He added that “under the new strategy, beneficiaries are provided with qualitative skills and international certifications that will position them for employment within and outside Nigeria. Twenty percent of the training is geared towards improvement of the productivity of already employed personnel while another 20 percent of spend on training is used for trainings on soft skills.” He reported that a key outcome of the Board’s HCD interventions is that Nigerians now successfully operate fields divested by multi-nationals. “We have indigenous companies with world-class capacities. We regularly export part of the skills acquired outside the shores of the land.”

fuel consumption and improving Tu r n A r o u n d M a i n t e n a n c e (TAM) time. “A seriou s study is going on currently to see the thing s that would be po s si ble on the Island of Brass in order to b r i n g dow n o u r c o s t of production.” commenting on the donation of a la boratory and ICT C entre to the seconda ry school s in Bra s s , he said that it wa s pa r t of effor t to build capacity of Nigeria which wa s in line with the mandate of the boa rd . “Capacity building i s one of NCDMB’s key objectives and the agency had decided to promote such effor t s f rom the prima ry school level up to the university level.

Majorwaves Energy Report JANUARY 2020, Vol 3 No 1 21 NCDMB, waltersmith petroleum to construct modular refinery in Brass Island “So fa r, NCDMB had donated 25 ICT centre s to seconda ry schools across the country and built the capacity of teachers in some states as part of its capacity building and cor porate social r e s p o n si bi l i t y p r o g r a m m e s . “We believe in enhancing the quality of Science, Technology, Engineering and Mathematic s ( S T E M ) e d u c a t i o n .“ I t i s sad t ha t i n some s e conda r y schools, par ticularly in remote location s , student s a re taught t h e s e s u bj e c t s w i t ho u t a ny p r a c t i c a l e x p e r i e n c e . “O u r strateg y going forwa rd i s to e n c o u r a g e S T E M e d u c a t io n a s well a s ICT in seconda ry s c ho ol s a c ro s s t he cou n t r y. “ T he s e day s ever y ent ra nce examination is done online and if we don’t sta r t inculcating tho se knowledge in seconda ry students, most of them will fall behind in meeting up with the ICT age,” he said. On strategie s for maintaining the centres, Wabote explained t ha t NC DMB had i n s ti tu te d a su s tai na bili ty prog ramme , w h i c h i n cl u d e s a o n e y e a r management a r rangement and t rai ni ng of s taff a n d lo cal s to o p e r a te t h e c e n t r e s . H e a s su re d t hat NC DMB would r u n p erio dic a s s e s sment s of the facilitie s and develop new strategies to sustain them. “We have a strategic objec tive and a plan to follow th rough on mo st of the se centre s we have e sta bli shed for su staina bility. For u s , it i s a n end to end t h i n k i n g i n m o s t of t h e s e a c t i v i t i e s w e a r e d o i n g ,” Wabote said. T h e N i g e r i a n C o n t e n t D e v e l o p m e n t a n d M o n i t o r i n g B o a r d ( NC DM B), s ay s i t w i l l pa r tner Walter smith Pet roleum L t d . to c o n s t r u c t a m o d u l a r refinery in Brass Island in Bayelsa. T he E xecutive Secreta ry of the board, Mr Simbi Wabote disclosed thi s in a statement i s sued by the B oa r d’s M a na gemen t i n A buja on T hu r s day. He spoke at t he c o m m i s s i o n i n g of a m o d u l a r s c i e n c e l a b o r a t o r y a t M o d e l G over nment S e conda r y S chool , Twon Bra s s and an Information Communication Technology (ICT) Centre at Government Seconda ry S chool Okpoama , both in Bra s s L o cal Gover nment A rea of t he state. According to him, a number of inve stment s oppor tunitie s a re being con sidered by NCDMB for Brass Island. “They include siting a modular refinery in par tnership with Waltersmith Petroleum Ltd. a n d u t i l i si n g fe e d s to ck f r om the Nigerian A gip Oil Company, which operate s in the location. “It i s al so a verita ble location for even a d ry dock facility or a floating dock facility. “NCDMB i s cu r rently studying a strateg y for establishing and enhancing all the exi sting dry dock facilitie s to maintain ou r ship s , light craf t s and al so expand ou r integ ration base in the country. “Bra s s I sla nd development will force dow n oil produc tion co st,” he said. He noted that the I sland a s a strategic location, had the clo s e s t p oi n t f r om w h e r e o n e could access many of the Floating Production Storage and Offloading (FPSO) platform s that operate off the shores of Nigerian waters, i ncludi ng Bonga mai n . Wa bote said t hat some of t he off shore oil and ga s field s were cu r rently being acce s sed f rom fa r location s l i ke L a go s , w i t h c o n si d e r a bl e co s t implication s . He said that developing and utili sing nea rby lo cation s like Bra s s I sla nd for oil and ga s logi stic s operation s would help the indu stry meet the recent cha rge by the Mini ster of S ta te fo r Pe t roleum R e sou r c e s fo r playe r s i n t he i n du s t r y to en su re a sig nificant reduc tion in the co st per ba r rel of Nigeria’s c r ude oil pro duc tion . “Pa r t of the s trateg y i s to site logi s tic s requi rement s where it i s ea sy to acce s s , reducing time,