Oil & Gas
NCDMB Rallies NNPC, oil producers to boost in-country manufacturing of line pipes
By David Owei, Bayelsa
The Nigerian Content Development and Monitoring Board (NCDMB) on Thursday achieved a much-needed consensus among critical oil and gas industry stakeholders and manufacturers to ramp up in-country production and utilisation of line pipes in oil and gas operations, as part of the strategy deepen local content, and conserve foreign exchange and create jobs.
The Oil Producers Trade Section (OPTS), comprising all international oil companies, and their indigenous counterparts under the aegis of the Independent Petroleum Producers Group (IPPG) met with the leading pipe manufacturing companies and pipe coaters as well as the NNPC Upstream Investment Management Services (NUIMS) at the instance of the NCDMB to take stock of progress made since 2011.
In Opening Remarks at the one-day “Stakeholders Workshop on Manufacturing of Line Pipes in Nigeria: Processes, Challenges, and Opportunities,” which held at the Nigerian Content Tower (NCT), Yenagoa, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, described line pipes as “a major driver in oil and gas industry operations,” adding, “without line pipes you cannot evacuate products.”
He said the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, envisages 100 per cent in-country manufacture of line pipes (seamless and welded pipes) and that the Board, in conjunction with the OPTS, had agreed on an initiative in 2011 to work towards attainment of that target.
The NCDMB boss noted that a lot still has to be done and that status reports of projects on line pipes would have to be presented and discussed at the workshop so as to determine appropriate measures by all stakeholders to intensify efforts to overcome teething problems if any.
Engr. Ogbe, represented by the Director of Monitoring and Evaluation, Alhaji Abdulmalik Halilu, disclosed that in realisation of the potential of in-country manufacture of line pipes for retention of significant revenue and job creation, the Board had introduced different policies and remains determined to work with industry players for meaningful progress.
In setting the tone for the workshop presentations and deliberations, he posed six questions to which he sought answers from the participants: Should we continue to focus on making line pipes in Nigeria? Where are we on the ‘Made in Nigeria’ line pipes projects? Are there still opportunities for Made-in-Nigeria line pipes? What should be the main considerations for ‘Made-in-Nigeria’ line pipes (infrastructure imperatives, investment incentives, etc.)? Who should invest and who are the buyers? What policies would drive the delivery of ‘Made-in-Nigeria’ line pipes?
In his own remarks, the Director, Capacity Building, NCDMB, Dr. Ama Ikuru, explained that the Board and the entire oil and gas industry are focused on Made-in-Nigeria line pipes, because it is “the key to Nigeria’s industrial development and a critical requirement of the NOGICD Act, 2010, and the Presidential Executive Order on Local Content.”
He noted that Made-in-Nigeria line pipes are a “reputation driver for the NOGICD Act” and are “central to the attainment of the 70 per cent objective of NCDMB’s [Nigerian Content] 10-Year Strategic Road Map.” In addition, the initiative would reduce costs and eliminate mark-up by middlemen.
Dr. Ikuru pointed out that there are major oil discoveries across Africa as well as opportunities in Nigeria and other parts of the continent, supported by the African Continental Free Trade Area (AfCFTA). Line pipe opportunities in Africa highlighted include the Trans-Saharan Gas Pipeline, African Renaissance Pipeline and Transmed Gas Pipeline.
On interventions by the NCDMB toward establishment of pipe mills in the country, he said the Board, among other things, introduced the Equipment Component Manufacturing Initiative (ECMI) and issued guidelines on it, which “birthed issuance of the Nigerian Content Equipment Certificate (NCEC).”
The NCEC scheme of the Board is designed to promote and enforce the utilisation of locally manufactured goods, services, and equipment in the oil and gas industry.
Before presentations by key manufacturers of line pipes, representatives of the leading IOCs and Independents, all industry holders in attendance had to state their individual responses and viewpoints regarding the six posers earlier raised by the NCDMB Executive Secretary.
In unison, all declared that Nigeria should continue to focus on making line pipes in-country to meet the target of 100 per cent. Key manufacturers then proceeded to explain where they are in their respective projects, highlighting status reports as well as challenges (in some cases), and what should be main considerations.
The Managing Director, Brentex Petroleum Services Limited, Mr. Chidi Nzerem, disclosed that his company has made appreciable progress in developing an LSAW Line Pipe Mill in Calabar, Cross River State, but has faced difficulties in securing long-term funding from the banks after investing over US$64 million. To take the project to completion stage, an additional US$176 million would be required.
He pointed out that “Nigeria sits on oil and gas and there must be commitment to manufacture line pipes” to eliminate capital flight through importation of pipes. He assured stakeholders that “within the next 36 months, line pipes will start rolling out from the mill if the required funds become available.”
For another industry player, Frigate Pipe and Tubulars Limited, whose seamless pipe mill plant has progressed without hiccups, status report was that the bulk of the manufacturing line has been acquired and that installation of the facility would be completed within the next 24 months.
The Chief Financial Officer of the company, Mr. Bankole Olugbile, said industry demand for seamless line pipes in Nigeria is 120,000 metric tonnes per annum, which could be easily met, but he pointed out that “projects like this require long-term cheap funding.” He called for incentives, such as pioneer status, among others, from government.
From Yulong Steel Pipes Limited, a pioneer in the industry that had suspended production operations in Nigeria for five years after supply of 2,000 metric tonnes of line pipes to Dangote Refinery, Lekki, Lagos, was news of its reentry into the country. Its representative declared that the company is looking forward to business from Trans-Saharan Gas Pipeline and Shell Petroleum Development Company’s Bonga North, among others.
Pipe coating companies, including Solewant Group, Monarch Alloy, and Tenaris, also gave their respective status reports and highlighted what they expect from oil and gas industry operators.
International oil companies affirmed that there are opportunities for Made-in-Nigeria line pipes and expressed keenness to do business with manufacturers in the country. Mrs. Chioma Okpoechi, Supply Chain Manager (Production and Logistics) of Shell Petroleum Development Company, provided procurement data on line pipes from her company indicating that US$43 million was spent between 2019 and 2014.
According to her, “steadily our operational requirements are growing” and that US$115 million is to be spent in the next four years. Mrs. Okpoechi expressed hope that “this should encourage Made-in-Nigeria manufacturers,” although she cautioned that quality and timeliness of delivery cannot be compromised.
Assurances were also received from Exxon Mobil, which urged local manufacturers to strive for cost competitiveness and ensuring that they understand what the oil and gas industry upstream needs. TotalEnergies also gave assurance of support for local manufacture.
Seplat Energy Plc, a leading Independent operator from among the indigenous upstream players, represented by its Nigerian Content Development Manager, Mr. Simeon Ogari, declared “We are 100 per cent in support of Made-in-Nigeria line pipes,” stating that the company is “a product of local content.” Another leading indigenous oil company, First Exploration & Production (First E&P), represented by its Project Manager, Engr. Soyemi Ayodeji, also pledged total support.
In rounding off presentations and deliberations, Dr. Ikuru, reminded participants that responsibilities for advancement of the programme for Made-in-Nigeria line pipes needed to be assigned.
Manufacturers commended NCDMB for its practical role as business enabler, citing a number of the Board’s interventions that have facilitated the emergence of many big indigenous companies, but said the Board could do more by helping to eliminate illegal importation of coated line pipes, particularly by marginal field operators. Also that the Board should play a role in facilitating access of manufacturers to credit facilities from banks.
Dr. Ikuru acknowledged that the suggestions made were appropriate but advised that the manufacturers could employ whistleblowing as a way to bring such illegal importation to the knowledge of the Board and Government. “We’ll follow up,” he assured.
Also contributing, the Director, Project Certification and Authorisation Department (PICAD), of NCDMB, Engr. Abayomi Bamidele, said the Customs and Excise Department has a role to play, and that manufacturers and coaters of line pipes could team up and prepare a draft bill, which should be submitted to the National Assembly for a law to bring in the Customs Department to play a role.
The NCDMB and all stakeholders agreed that platforms like the Stakeholders Workshop should hold regularly, and that it would be desirable for similar platforms where financial institutions could participate, given the critical importance of funding.
Oil & Gas
Nigeria loses $226bn Revenue Since Suspension of Oil Production in Ogoniland, Says PINL •Advocates community-led, environmentally grounded approach
By Our Correspondent
Pipeline Infrastructure Nigeria Limited (PINL), the surveillance firm in charge of the Trans-Niger Pipeline (TNP), has disclosed that Nigeria has lost an estimated $226.734 billion in revenue from the suspension of crude oil production across 96 wells in Ogoniland over the past 32 years.
PINL made the disclosure at its April monthly stakeholders’ meeting in Port Harcourt, Rivers State on Wednesday, describing the resumption of oil operations in the region as a strategic national priority, but stressed that the process must be anchored on community participation, environmental sustainability, and transparency.
Ogoniland, covered under Oil Mining Lease (OML) 11, holds the potential to produce over 500,000 barrels of crude oil per day. Operations were halted in 1993 in the area following widespread unrest and environmental concerns linked to decades of exploration activities.
Dr. Akpos Mezeh, General Manager, Community and Stakeholder Relations at PINL, said the scale of accumulated losses demands urgent attention.
“Available data shows that over $226.734 billion has been lost due to the suspension of crude oil production from 96 oil wells in Ogoniland over the past 32 years. This clearly underscores both the economic cost of inaction and the immense opportunity that lies ahead,” he said.
PINL outlined four conditions it considers essential to a successful resumption: host communities must be involved as critical stakeholders across all phases of the process; environmental clean-up and restoration efforts already underway must be sustained; a community-based security framework drawing on PINL’s pipeline surveillance model across the Niger Delta should be adopted; and economic inclusion must be prioritised, with residents benefiting directly through employment, contracts, and capacity development.
Mezeh said the company’s stance reflects wider sentiment across the region. “The position of PINL aligns with growing calls from stakeholders in the Niger Delta for the Federal Government to restart oil production in Ogoniland in a manner that balances economic benefits with environmental justice and community interests,” he said.
PINL affirmed it’s readiness to contribute directly to the effort. “At PINL, we stand ready to support this process by applying our experience in stakeholder engagement and infrastructure protection to ensure a peaceful, secure, and sustainable resumption,” Mezeh added.
According to him, observers note that any successful resumption will depend on rebuilding trust among stakeholders, resolving environmental grievances, and ensuring host communities have a central role in decision-making.
PINL maintained that, with the right approach, restarting production in Ogoniland could significantly boost Nigeria’s output, increase national revenue, and contribute to broader economic growth.
Oil & Gas
NASS Petroleum C’tees reject petition against Pipeline surveillance contract …pass vote of confidence on Tantita, others
By Our Correspondent
National Assembly joint Committees on Petroleum Resources has dismissed three petitions against the pipeline surveillance contract, while passing a vote of confidence on Tantita Security Service, the security agents and the NNPCL for helping to restore the nation’s oil production.
Oil production, according to available records to the panel stood at about 1.8 million barrels per day as at April, an increase from the about nine hundred thousand liters per day in 2022 when the surveillance contract was awarded.
The resolution followed a motion moved by the Chairman of the House Committee on Petroleum Resources, Midstream, Henry Okojie at a one day parliamentary roundtable on the state of pipeline security and the battle against crude oil theft on Wednesday.
Okojie said that Tantita and the security agencies have recorded lots of achievements in securing the nation’s petroleum assets, thereby increasing oil revenue for the country.
Speaking at the roundtable, Speaker of the House of the apex legislature,Rt Hon Abbas Tajudeen said despite the ongoing tensions in the Middle East and the protracted conflict involving Russia and Ukraine, the need for valiant efforts at finding alternative energy sources has become necessary, adding that crude oil still remains the largest source of primary energy in the world, especially the transport sector where it still powers 95 percent of all vehicles, planes and ships.
The Speaker said the current crises, particularly with the closure of the Strait of Hormuz, has resulted in price surges and supply shortages, with consequential impact on the nation’s economic survival, saying “as a nation, we must rise to the challenge, and this roundtable is a clear indication that the National Assembly is ready to lead the way.
He said further that in order to understand why the surveillance contract became necessary, “we must remember that Nigeria’s journey as an oil-producing nation has been a very challenging one.
“The discovery of petroleum has both earned us massive foreign exchange and resulted in environmental degradation and despair. As a result, the Niger Delta has witnessed profound agitations over the years which often resulted in pipeline vandalism, crude oil theft, and illegal refining activities.
“Desperate communities and weak enforcement structures created a climate of instability in the oil sector with staggering consequences.
“At some point, Nigeria was losing billions of dollars annually as between 10 to 30 percent of crude oil production was lost to theft, undermining national revenue and questioning our capacity to remain a reliable oil producer.
“It was within this context that the Federal Government introduced the pipeline surveillance contract, including the engagement of private security actors and community-based structures.
“These interventions were designed to provide security to our oil facilities, with the understanding that without the help of the communities where these pipelines and other infrastructure were located, the job of securing them would be impossible.
“In the end, the synergy of private surveillance providers, our security agencies, and community engagement, led to remarkable improvements in our daily production quotas.”
The number four citizen of Nigeria said further that there has been clear undeniable and compelling success stories, saying “recent reports indicate that most of the illegal tapping points have been dismantled, production levels have improved significantly and oil receipts are approaching near-total delivery to export terminals, compared to the alarming losses of previous years when production sometimes plummeted to about 700 barrels per day.
“Today, largely due to these surveillance/security efforts, we have been able to ramp up production to about 1.8 million barrel per day. Importantly, the surveillance contract has been able to create direct employment for thousands of Niger Delta youths who were formerly agitators, providing a legitimate
alternative to crime, and placing security back in the hands of the people who host the facilities.
“There is no doubt that we can do better. There are still a number of challenges, particularly as they concern accountability, transparency, and the effectiveness of certain surveillance frameworks.
“Recent public discourse suggests that crude oil theft still occurs at concerning levels, sometimes even under existing security arrangements. This underscores the need for continuous oversight and reform”.
He said the National Assembly has remained at the forefront of confronting the challenges in the oil sector and has through legislation, oversight, and appropriation taken deliberate steps to strengthen Nigeria’s response to threats to our oil industry.
He said “we have enacted and reviewed laws such as the Petroleum Production and Distribution (Anti-Sabotage) Act and other relevant statutes aimed at deterring-pipeline vandalism while emplacing stringent penalties.
“We have also worked to strengthen institutions like the National Oil Spill Detection and Response Agency (NOSDRA), recognizing the need for improved monitoring and environmental accountability.
“Both are the fruits of comprehensive and deliberate policy actions that were enabled by the passing of the landmark Petroleum Industry Act (PIA). Some of the provisions of this act, like the Host Community Development Trust, made Corporate Social Responsibility a legal mandate and gave host communities a direct financial stake in the profitability of the oil sector.
“Moreover, by legislating that communities forfeit their entitlement for the year if vandalism occurs in their domain, the law operationalized the concept of “shared responsibility.” Communities now police their own areas, knowing that an attack on a pipeline becomes an attack on their trust fund.
“The 10th National Assembly has continued to take bold legislative steps to institutionalize the gains of the PIA. From maintaining a rigorous oversight of the Act to ensure steady implementation, to our recent investigative hearings on oil theft, we are closing the legal loopholes that once allowed criminals to thrive.
‘Furthermore, this Assembly has exercised its constitutional mandate by probing aspects of the surveillance contract, approving critical funding for pipeline security, and insisting that crude oil theft be treated not just as an economic crime, but as a national security threat requiring coordinated action across agencies.
“In summary, we have consistently emphasized that curbing crude oil theft must be a collective responsibility, involving government, host communities, security agencies, and private operators alike.”
The Speaker said the event was an opportunity to advance the fortunes of the oil industry by consolidating on the gains made so far from the surveillance contract, while addressing existing gaps, while also
reassessing the current pipeline surveillance architecture, strengthen transparency and accountability mechanisms, deepen community engagement as critical stakeholders in protecting national assets, and align legislative frameworks with emerging realities in the oil and gas sector, particularly under the circumstances the world has now found itself.
He said “let us remember that the story of Nigeria’s oil industry is not only one of challenges, but also of resilience and possibility. Let us build a system where pipelines are no longer targets, but symbols of shared prosperity; where host communities are not marginalized, but empowered partners; and where Nigeria’s oil wealth translates into sustainable national development.
“The Middle East is in turmoil, Russia is distracted, and global energy maps are being redrawn. The world is looking for energy security, and Nigeria must put itself out there as a credible alternative. We cannot afford the luxury of internal sabotage. Our message to the world is clear: Nigeria is securing its assets, stabilizing its output, and is open for business.”
Oil & Gas
SECURING NIGERIA’S OIL LIFELINE: Third phase Amnesty Leaders Endorse Continuation of Tantita,s surveillance contact, Oppose Decentralisation
By David Owei,Bayelsa
Leaders of the Third Phase of the Presidential Amnesty Programme have strongly endorsed the retention of the pipeline surveillance contract awarded to Tantita Security Services Nigeria Limited (TSSNL), owned by High Chief Government Oweizide Ekpemupolo, popularly known as Tompolo. They have urged President Bola Ahmed Tinubu to resist calls for the contract’s termination or fragmentation, describing such moves as detrimental to the hard-won peace and security in the Niger Delta region.
In a statement issued by National Chairman Gen. Elaye Slaboh (T.D. Dollars) and the national executive, the group warned that any disruption to Tantita’s mandate would jeopardise recent gains in combating crude oil theft, illegal bunkering, and pipeline vandalism. They emphasised that no other individual or entity possesses the local influence, community trust, and operational expertise required to effectively safeguard Nigeria’s critical oil infrastructure.
“Those agitating for the cancellation or decentralisation of the contract are enemies of the fragile peace we have achieved in the Niger Delta,” the leaders declared. They cautioned that reversing the current arrangement could trigger a resurgence of economic sabotage, leading to a sharp decline in crude oil production and significant revenue losses for the national economy.
The amnesty leaders alleged that the campaign against Tantita is largely orchestrated by oil thieves, pipeline vandals, and other vested interests intent on undermining progress in the fight against oil theft. They further claimed that political opponents of the Tinubu administration are exploiting the issue to sabotage the Renewed Hope Agenda, particularly in the lead-up to the 2027 general elections, while seeking to distract from Tompolo’s grassroots mobilisation efforts in support of the President’s re-election bid.
Gen. Slabor highlighted Tantita’s innovative operational model, which combines robust pipeline protection with extensive community engagement and sustainable development initiatives. This holistic approach, he noted, is unprecedented in the Niger Delta and has been instrumental in fostering long-term regional stability and economic recovery.
Rather than fragmenting the surveillance framework, the group advised the Federal Government to focus on reviewing and revoking oil wells operated by non-indigenes of the Niger Delta, with a view to reallocating them to genuine local stakeholders. Such a policy, they argued, would promote authentic indigenous participation, strengthen community ownership, and contribute to more sustainable national oil security.
This position from Third Phase Amnesty Programme leaders underscores the strategic importance of a unified, effective surveillance mechanism in protecting Nigeria’s economic lifeline while advancing inclusive development in the oil-producing region. The Federal Government is expected to weigh these perspectives carefully as it reviews arrangements for safeguarding petroleum assets.
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