HomeNewsNigerian oil and gas industry targets growth by 2027

Nigerian oil and gas industry targets growth by 2027

In West Africa, the executive secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Kesiye Wabote, has stated that the Nigerian oil and gas industry will domesticate the full capacity and capability required for the integration of Floating Production Storage and Offloading vessels (FPSO) by 2027.

ThisDAY reported that Wabote also disclosed that community contractors in the oil and gas industry will only pay 5% interest rate when they access the Nigerian Content Intervention Fund (NCI Fund).

“The intent is to promote the participation of genuine community contractors in oil and gas projects and integration of communities in the industry value chain as part of the strategy to grow the local economy and promote peace and tranquility in the communities,” he said.

Wabote further noted that the new target for the industry follows from the successful in-country fabrication of six modules of the Total Egina FPSO, which will be integrated into the FPSO at the SHI-MCI yard in Lagos in September 2017.

Oil and gas industry

He stated that NCDMB is targeting to establish a local content bank of Nigeria “to focus on establishment of facilities for domiciliation of services with emphasis on optimal use of local resource input.”

He disclosed that Nigerian content activities recorded six million training man hours and is now able to retain $5 billion in the local economy from the annual $20 billion industry expenditure, which ended up in foreign economies in the past, media reported.

Wabote revealed that 36% of the marine vessels operating in the Nigerian Oil and Gas Industry are now owned by indigenous players, a marked improvement from total foreign domination of the industry before the implementation of the Act. Read more…

He said international oil companies comply reasonably in remitting 1% of the value of their contracts but some service companies and indigenous operating firms default in their payment.

He noted that the impact of local content in the oil and gas sector has not been sufficiently linked to other sectors of the economy and canvassed for the support of key government agencies in deepening local content in the country.

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.