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NCDMB Rallies NNPC, oil producers to boost in-country manufacturing of line pipes

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Stakeholders and captains of oil industry

 

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

Niger Delta: Bayelsa CDC Chairman Tasks Renaissance On Improved CSR

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Renaissance Africa Energy Nigeria Ltd logo

By David Owei,Bayelsa

The Community Development Committee (CDC), Chairman of Elebele Community in the Ogbia Local Government Area of Bayelsa State has charged the management of an oil firm, Renaissance Africa Energy Nigeria Ltd to up its Corporate Social Responsibility (CSR) with its host Communities.

He gave the charge while speaking with newsmen yesterday during a fact-finding tour to a select host communities of the firm.

Okala who doubles as the Action Committee Chairman on the Restoration of electricity to host communities of the Kolo Creek oil field described the firm as an old wine in new bottle, saying the firm is dealing with the communities with the same principles and modus operandi like the SPDC.

He alleged that the firm was not putting enough efforts towards reciprocating the kind gestures extended to her by host communities of the area, saying that Renaissance has not responded responsibly to the yearnings of the communities after series of meetings they have had upon taking over of the onshore assets of the SPDC.

He said: “Renaissance has stuck to the same style and patterns the SPDC used in their dealings with Communities of the Kolo Creek oil field. Till date we’ve not seen any meaningful engagement with this firm as host communities.

“We can describe Renaissance as an old wine in a new bottle, because it’s the same management and same staff that were with the SPDC that are still with Renaissance. They had meetings with us and even as we speak we’ve not seen them implementing any of the decisions reached collectively.

“However, because the name is new in this area we’re patiently giving them some time so that we won’t be accused of over reacting and impatience”.

” I don’t want to conclude that we’re not in good relationship with Renaissance, but the truth is that almost all the communities where Renaissance is operating that I know are complaining of poor relationship with this firm”.

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Law & Crime

NPDA Urges FG, NNPCL to Ignore Calls to Revoke PINL’s Trans-Forcados Pipeline Repair Contract

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President Bola Ahmed Tinubu

 

By David Owei,Bayelsa
The Niger Delta Progressive Alliance (NDPA) has urged the Federal Government and the Nigerian National Petroleum Company Limited (NNPCL) to ignore the call by the Ijaw People’s Development Initiative (IPDI), to terminate the contract for the repair Trans-Forcados pipeine awarded to Pipeline Infrastructure Nigeria Limited (PINL).

The group urged the Federal Government to stand firm against any pressure, motivated by ethnic bias, to revoke contracts awarded on the basis of due process, technical capacity and strategic fit.

A press statement signed by Amb Nse Victor Udoh, President General, and Felix Ejenavi (General Beni), Delta State Coordinator of the Niger Delta Progressive Alliance (NDPA), described as inflammatory the statement credited to the Ijaw People’s Development Initiative (IPDI), in which they called for the abrupt revocation of a pipeline repair contract duly awarded to Pipeline Infrastructure Nigeria Limited (PINL).

NPDA argued that PINL is a professionally accredited infrastructure firm associated with His Majesty, the revered Olu of Warri, for essential repair works on the Trans-Forcados pipeline in Warri South-West Local Government Area, Delta State and has all the required capacity and competence to execute the contract.

*Professional Merit and Institutional Legitimacy*

“PINL is a registered and qualified infrastructure company with verifiable record of delivering high-risk oil and gas projects across multiple states in the Niger Delta”, the group said adding, “It is a company with deep roots spanning some of the most challenging terrains in the oil-producing corridors of this country.

“PINL was not selected for this contract because of name or title or as an echo of tribal favour, but because of its quiet pedigree defined by access to technical equipment, proven capacity, operational experience, and adherence to global standards”.

The group added that the company’s contributions extend beyond repairs, to securing the Eastern Corridor, which has led to a sharp reduction in pipeline vandalism and crude oil theft, contributing significantly to increased national oil production and revenue.

These gains have also improved livelihoods, stabilized the oil market, and reduced environmental degradation caused by illegal tapping”, they said.

In addition, PINL has meaningfully engaged local communities through the employment of over 30,000 Niger Deltans under its surveillance contract. It has also invested in education and empowerment through skills acquisition programmes and scholarship initiatives for both undergraduate and postgraduate students.

*Environmental Stewardship and Moral Responsibility: When Protest Endangers Paradise*

The NPDA noted that those opposing the pipeline repair seemed to quickly forget the grave environmental risk their protest represented explaining that crude oil spill, should it occur, does not respect tribe or boundary. “It poisons the soil, erodes farmland, destroys the water and aquatic life, and jeopardizes the health and future of entire generations. “To stand in the way of a swift and competent repair effort is to knowingly extend an invitation to disaster into one’s community. It is a monumental disservice not only to the people but to their children and the ecosystems on which they depend”.

*Of Ijaw and Itsekiri Relations: Toward a Higher Horizon*

According to the NPDA, the Niger Delta is a synchrony of proud tribes consisting of Ijaw, Itsekiri, Urhobo, Isoko, Ogoni, and others; It warned that to invoke ancient divisions as a pretext for contemporary disruption is to re-open wounds that development has barely begun to suture. “We therefore call on IPDI and other regional groups to reject the politics of agitation and embrace collaboration that champions common interests and collective advancement. Dialogue, transparency, and cooperation remain our best paths forward. Let us stop building fences where we should be laying foundations”.

*A Call to the Federal Government and the NNPCL*

Udoh, President General, of NPDA said Governance must be guided by principle, not provocation. As such, contracts should not be revoked in response to reactionary pressure. To do so would set a calamitous precedent, eroding trust, emboldening parochial interests, and set a hazardous precedent that risks plunging the Niger Delta back into unrest.

Furthermore, security agencies must remain vigilant in guarding against attempts to disrupt critical infrastructure under any guise and to ensure that peace is preserved across all operational zones.

*On the Recklessness of Threatened Disruption*

“We find it deeply regrettable that certain groups are threatening to inflame young people toward the obstruction of critical infrastructure. Such incitement is not activism; it is an invitation to anarchy” he stated

He stressed that the Niger Delta deserved better than a future written in the language of sabotage. “We categorically condemn any of such that may arise in the name of tribal defence. For such actions, if allowed to persist, will not only endanger the region’s economy but could invite security interventions with far-reaching consequences”.

“As such, to attempt to demonize and reframe this technical decision as a tribal affront is intellectually dishonest, short-sighted and counterproductive. If one must oppose such an enterprise, let it be on evidence of failure, not on the grounds of discomfort. It is thus imperative that we rise above this reflex and collectively reject the idea that development in this region must always be filtered through the lens of identity politics. Let merit and excellence breathe again. Our people deserve nothing less”, Udoh stated.

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Oil & Gas

Niger Delta Stakeholders Demands Expansion of PINL’s Surveillance Job …Commends Firm For Engaging Host Communities

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Chairman of Southern Ijaw Traditional Rulers Council, HRH, King Darius Job, who led the call at the stakeholders meeting

nbsp;

Stakeholders in the Niger Delta region are now calling on the Nigeria National Petroleum Corporation Limited, NNPCL, and the Federal Government to expand the scope of the work of Pipeline Infrastructure Nigeria Limited, PINL, beyond the Eastern Corridor to the entire country.
The call, they said became necessary following PINL’s achievement of near zero infractions on the Trans Niger Pipeline, TNP, crisscrossing 215 communities in the Eastern Corridor.
The stakeholders made the demand during the monthly engagement meeting with stakeholders from pipelines host communities organised by PINL in Bayelsa State.
They noted PINL’s strategy of consistent dialogue with host communities and engagement of community youths for surveillance jobs as strategic gestures which have helped to secure the pipelines and thereby boosting the nation’s revenue.
Chairman of Southern Ijaw Traditional Rulers Council, HRH, King Darius Job, who led the call at the stakeholders meeting averred that the entire pipeline communities in the state were satisfied with the operations of the firm in their domain.
He acknowledged that the operations of PINL have helped to reduce cases of pollution and mitigated crisis in their communities.
“I want to thank you for what you are doing to protect our pipelines and I think overall the damage has reduced.
“With the way you people are going, the whole Bayelsa State is hailing your work and if you continue like this, our prayer is that the whole pipelines in the federation should be handed over to you for proper surveillance work so that our pipelines will be safer and for federal government to earn more money to do developmental projects,” he said.
King Job however, called for increased incentives for the surveillance guards engaged by the company saying, “Our celebration here is because of those people in the bush (surveillance guards) so they should be given preferencial treatment with some sort of incentives so that they will work happier while they are in the forest”.
Also speaking, HRM, King Funpere Gabriel Okah, King of Gbarain Kingdom said they had witnessed changes since the company started operations in their domain.
He called on the stakeholders to rally behind the surveillance firm.
“I want to encourage you to do more because we have seen changes. In my kingdom there is no vandalisation because we believe that if you do that we cause more problem for ourselves. Let us support companies coming to work for us,” he stated.
For his part, Dr Morris Alagoa, a Frontline environmentalist and Deputy Director, Environmental Rights Defenders Network, corroborated the fact that PINL’s operations was yielding results especially in the area of environmental protection as the he said the incidents of pipeline vandalism and oil spills has drastically reduced.
“PINL is really not only protecting the environment from recurring spills but have also enable the nation to have more volumes in terms of crude oil production and this translate to more revenue for the country,” he said.
Alagoa added: “It is a thing of joy that PINL is doing what they are doing, mitigating crisis in communities and also ensuring these spills no longer happening and that’s safeguarding the environment”.
Earlier, Dr Akpos Mezeh, General Manager, Community Relations and Stakeholders Engagement of PINL, disclosed that the firm has recorded zero infractions on the TNP in the last one year, ascribing the feat to stakeholders collaboration and strategic engagement by the firm.
“I’m delighted to inform you that, in line with our core mission of securing the Eastern Corridor pipelines, PINL has recorded near-zero incidents in the past month. This outstanding result speaks volumes about the strength of our collaboration with host communities and the commitment of our teams on the ground.
“These achievements are rooted in the consistent application of proven strategies—ensuring the safety of our surveillance personnel, timely salary payments, and rapid community dispute resolution, all contributing to reduced dandowntime increased trust,” he stated.
Dr Mezeh disclosed that the company’s scope of work is now expanding into all national assets including gas pipelines.
He used the medium to announce the company’s corporate social responsibility packages for women and youths of the host communities adding that a committee was already set up to implement a planned scholarship programme for them.
Dr Mezeh further reiterated the company’s commitment to the safety of it’s workers and welfare of host communities.
Our correspondents reports that representatives from the Office of the National Security Adviser, ONSA, Defense Headquarters and the Project Monitoring Office of the the NNPCL attended the stakeholders meeting.

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