Yemisi Izuora
Nigeria is recording major local content successes in the oil and gas industry following the unveiling of another key project that has potentials of boosting activities of the industry.
Following completion of the mega project, the Nigerian Content Development and Monitoring Board (NCDMB) unveiled the 50,000 metric tonnes per annum (MTPA) Bell Oil & Gas’ integrated pipe threading, valve assembly and composite pipes manufacturing facility, located at the Lekki Free Trade Zone (LFZ), Lagos.
Unveiling the facility with an estimated cost of $100 million over a five-year period, the Executive Secretary (ES) of NCDMB, Mr. Omatsola Ogbe, said the landmark project owned by an indigenous oil service company was a testament to the growth of local competence and capacity in the Nigerian oil and gas industry.
According to Ogbe: “Today’s commissioning of Bell Oil & Gas FZE’s state-of-the-art facility for pipe threading, machining, valve manufacturing, assembly, and maintenance marks a significant advancement in our industry. I commend Bell Oil & Gas for their foresight and commitment to enhancing Nigeria’s energy sector.
“They are not only creating infrastructure but are also driving the in-country value that is vital for our nation’s progress. This facility will bolster our capabilities, offering essential services that will be instrumental in meeting the growing demand for oil and gas infrastructure within Nigeria.”
He emphasized that Nigerian Content was not ‘Nigerianisation’ or exclusion of foreign participation in the oil and gas Industry but rather an implementation model which provides sufficient opportunities for participation of multinationals, Original Equipment Manufacturers (OEMs) and offshore vendors in a mutually beneficial manner.
He explained that piping and threading were critical components in the oil and gas industry, adding that from transportation of oil and gas to ensuring the structural integrity of installations, these elements play a central role in the value chain.
As Nigeria strives to achieve energy self-sufficiency, he said the need for quality piping and threading services cannot be overstated.
According to Ogbe, with major projects such as the Dangote Refinery, TotalEnergies Ubeta gas project, Ajaokuta l-Kaduna-Kano (AKK) Gas Pipeline, and the Nigeria-Morocco Gas Pipeline, the demand for these services continues to grow.
The ES, maintained that Bell Oil & Gas was positioning itself well to meet the foregoing demand, thus reducing the country’s dependence on imported materials and services, and ensuring the retention of the economic benefits within the Nigerian borders.
Emphasizing the importance of engaging Nigerian youth in the sector, the local content regulator stated that the oil and gas industry provides vast opportunities across the value chain – from production and engineering to logistics and project management.
In his welcome address, Chief Executive Officer of Bell Oil & Gas, Dr. Kayode Thomas, stated the project which is being built in three phases was designed to provide pipe threading, Oil Composite Tubular Goods (OCTG) used for drilling in onshore and offshore operations.
He said the facility would serve as a valve manufacturing, assembly, repair, maintenance workshop and a composite pipe fabrication plant.
Thomas revealed that the entire project was estimated to cost about $100 million to achieve full completion.
“We’re extremely proud and excited to be creating value at a strategically important time in the nation and in the industry, because this project has taken the best part of seven years to conceptualize, to design, to construct, and to get to the point where we are today, where we can proudly say we’re ready for business.
“It is wholly indigenous. It will be run wholly by Nigerians. We do have technical partners, but our aim from the very onset was not to be commission agents. It was about knowledge and technology transfer to local manpower. This is our own contribution to local content, and our vision as an organization is to be the reference point for true local content development in the Nigerian oil and gas industry.”
He, however, regretted that no local bank showed interest in supporting the project with funds, a challenge he said that left the company with the option of sourcing funds abroad.
He stated that Nigeria’s quest to achieve industrialization and national development would remain a mirage if local banks continue refusing to support local companies that want to create in-country value.