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Tag: and Construction (EPC) contractors

  • Nigerian govt to implement drill or drop policy on IOCs

    Nigerian govt to implement drill or drop policy on IOCs

    …urge companies to develop assets

    The federal government has called on International Oil Companies (IOCs) operating in Nigeria to ensure development and utilization of their assets, as it disclose plans to begin implementing the drill or drop provisions of the Petroleum Industry Act (PIA) where necessary.

    Heineken Lokpobiri, minister of Petroleum Resources (Oil), stated this at the Cross Industry Group (CIG) meeting organized by IOCs operating in Nigeria, held in Florence, Italy.

    According to Lokpobiri, industry players are expected to explore collaborative measures such as shared resources for contiguous assets, farm-outs, and the release of underutilized assets to operators ready to invest in production.

    “We cannot continue to have assets sitting idle for 20 to 30 years without development. If you are not utilizing an asset and it remains underdeveloped for decades, it neither adds value to your books nor to us as a country.

    “We encourage industry players to explore collaborative measures such as shared resources for contiguous assets, farm-outs, and the release of underutilized assets to operators ready to invest in production. Otherwise, like any responsible government, we will take back these assets and allocate them to those willing to go to work,” he said in a statement issued to journalists on Tuesday.

    The Minister urged operators to consider farm-out agreements where assets are close to existing infrastructure, rather than incurring high costs on new Floating Production Storage and Offloading (FPSO) units.

    Lokpobiri also noted that while IOCs have pointed to Engineering, Procurement, and Construction (EPC) contractors as a challenge, EPCs will only commit when they see strong investment decisions from industry players.

    “The Government has done its part by providing the requisite and investment-friendly fiscal policies, including the President’s Executive Order incentivizing deepwater investments. Now, the ball is in the court of the IOCs and other operators to make strategic investment decisions that will drive increased production and sustainability in the sector.

    “The Federal Government remains committed to ensuring a thriving oil and gas industry and expects operators to match its commitment by making tangible investment decisions that will drive growth, sustainability, and national energy security,” the Minister stated.

    He further emphasized the need for IOCs to support local refining efforts, noting that more refineries are coming on stream and will require a steady supply of crude oil. To make this easy and possible, he stressed that ramping up production will enable Nigeria to meet both local and international obligations.

    In his remarks, Osagie Osunbor, Chairman of the Oil Producers Trade Section (OPTS), commended the Minister for his direct engagement with industry players and for the Federal Government’s continued efforts in advancing the sector.

    “We appreciate the government’s commitment to creating a conducive environment for investment. The Minister’s engagement has provided critical insights and has also challenged us as industry players to step up efforts to increase production,” Osunbor stated.

  • NCDMB, NLNG Commission Galvanising Plant for Train 7 Project, Reaffirm Commitment to Nigerian Content

    NCDMB, NLNG Commission Galvanising Plant for Train 7 Project, Reaffirm Commitment to Nigerian Content

    The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe (FNSE), on Friday, commissioned the 10,000 Tons per annum galvanising plant constructed by Daewoo Engineering Nigeria Limited, one of the Engineering, Procurement, and Construction (EPC) contractors of the Nigeria LNG Limited (NLNG) Train 7 Project.

    Engr. Ogbe commissioned the plant, at Abam-ama, Okrika, Rivers State, alongside the Managing Director and Chief Executive Officer of NLNG, Dr. Philip Mshelbila, who was represented by Mr. Andy Odeh, NLNG’s General Manager, External Relations, and Sustainable Development.

    The galvanising plant is one of the capacity development interventions for the Train 7 project and the establishment is a sequel to NCDMB’s requirement that the execution of major EPC projects in the country must include the development of a legacy investment that will close a critical capacity gap in the oil and gas industry.

    The Executive Secretary lauded NLNG and Daewoo Engineering for responding positively to the Nigerian Content legacy requirement, adding that the commissioning of the hot deep galvanising plant has increased Nigeria’s galvanising capacity to over 180,000 Tons/annum, with similar facilities established by Dorman-long Engineering, Sparkwest steel industries and African Industries Group.

    The facility, he explained, will serve the Nigerian oil and gas industry and linkage sectors, including telecommunications, power and transport sectors that require galvanised materials. The importance of galvanising, he explained, included corrosion protection, the extended service life of steel materials, cost-effectiveness and safety assurances.

    Engr. Ogbe indicated that the galvanising plants and other strategic Nigerian Content investments could enjoy patronage from sister African countries courtesy of the Africa Continental Free Trade Agreement protocols, especially if the firms carry out intensive marketing and remain committed to quality standards and competitiveness.

    He confirmed that the domiciliation of key industry capacities is contributing towards the attainment of the 70% Nigerian Content target by 2027 and the realisation of job creation and other economic aspirations of President Bola Tinubu’s Administration.

    In his remarks, the Managing Director of NLNG, Dr. Philip Mshelbila, reiterated the company’s unwavering commitment to achieving its Nigerian Content objectives in its Train 7 Project on Bonny Island.

    According to Dr. Mshelbila, the protection of steel for durability was a significant application in the energy sector, bolstering the resilience of equipment against depletion and enhancing operational efficiency, reducing wastage from replacement costs, and prolonging the lifespan of relevant equipment.

    “The visit to the Daewoo Galvanising Plant is a further ‘show and tell’ of our compliance with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and, our sincere vision of being a globally competitive LNG company helping build a better Nigeria. As we commission this facility, we are not only celebrating the expansion of our industrial capabilities but also reaffirming our unwavering commitment to contributing to the local economy and creating sustainable job opportunities for the local business environment,” he said.

    Dr. Mshelbila reported significant progress in the Train 7 Project reflecting the Company’s commitment to excellence.

    “We are proud to share the development of the Train 7 project, a groundbreaking initiative that sets new standards in the Nigerian oil and gas sector. Train 7 has achieved several notable milestones including the successful completion of key construction phases and the integration of advanced technologies that enhance our operational capabilities. These accomplishments reflect our commitment to delivering substantial economic and social benefits to Nigeria.

    “Our dedication to Nigerian Content is evident in every facet of our operations. From enhancing local capabilities and fostering technological innovation to creating sustainable opportunities for Nigerians, NLNG remains at the forefront of these efforts. We at NLNG are determined to “Go Beyond Compliance” in line with our vision of helping to build a better Nigeria,” he stressed.

    The Executive Secretary took a tour of the plant, alongside other executives of NLNG, NCDMB, Daewoo Construction and key stakeholders of the oil and gas industry.