NCDMB sees local content in oil and gas hitting 70% by 2027
The local content agency has been vigorously driving the domestication of key oil and gas operations, with local service companies and skilled Nigerians increasingly playing major roles in the industry.
With local content growing significantly in the last few years, Engr. Felix Ogbe, Executive Secretary of the Nigerian Content Development and Monitoring Board, is optimistic that the growth trajectory will be maintained. Speaking at the 2024 Nigerian Oil and Gas Conference (NOG) in Abuja, the local content boss hinged the achievement of this target on key pillars.
This includes promoting the utilisation/growth of in-country capacities, enhancing the cost competitiveness of oil and gas projects, and the non-inclusion of intermediary entities lacking the essential capacity to perform the Nigerian Content Plan.
Ogbe also expressed the commitment of the agency to implement the Presidential Policy Directive on Local Content Compliance, assuring that when fully implemented, it would positively impact Nigeria’s oil and gas industry, ensure cost competitiveness and attract further investments.
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The directive seeks to deepen local content in the Nigerian oil and gas industry, enhance competitiveness, mitigate risks of approving unqualified contractors, improve timeline approval and create an enabling business environment.
The Presidential Directive and our modalities are in accordance with the objectives of our 10-Year Strategic Roadmap, as they will significantly contribute to the deepening of Nigerian Content. This will ultimately help us achieve our overarching aim of increasing the level of Nigerian Content to 70 percent by 2027, said Ogbe.
The local content agency has always believed that projects help it in achieving its mandate, where local service providers have opportunities to deploy the capacity they have built and skilled Nigerians are placed in positions hitherto occupied by expatriates.
To date, the EGINA FPSO is the biggest platform that Nigerians have had the opportunity to contribute significantly to bringing the project to fruition. Another is the ongoing NLNG’s Train 7 project, which is said to also provide major opportunities for local service providers. Engr. Ogbe believes many more of such projects will deepen local content growth.
The Final Investment Decision (FID) made on the Ubeta Field Development Project by TotalEnergies Exploration and Production Nigeria Limited and its JV Partner, Nigerian National Petroleum Company Limited, NNPC Ltd, is another significant accomplishment. This project will add over 350 million standard cubic feet of gas per day to our country’s gas production capacity. The Board is determined to establish an enabling business environment that will attract more investors to the country’s oil and gas sector.
Mr Ogbe listed some of his accomplishments since he was appointed to include the NEDOGAS Kwale Gas Gathering and Injection facility, one of its partnership initiatives with advancement in attaining the federal government’s gas flare-out policy. It was commissioned in Kwale, Delta State.
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Another achievement is the Amal Technologies Gas Leak Detection Device and Printed Circuit Board manufacturing facility in Idu, Abuja. The facility, he said represented a new era in the Nigerian oil and gas industry and a significant growth in research and technology innovation. It is a testament to Nigeria’s ability to create indigenous innovation that will be implemented to address the obstacles that the Nigerian oil and gas industry is currently encountering.
NOG is an annual event in Nigeria. This year’s edition is themed Showcasing opportunities, driving investment, meeting energy demand. The event ends July 4.
