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
Gas Pipeline Host Communities Give NNPCL, PINL 14 Days Ultimatum Over Unpaid Surveillance Allowances.
By David Owei
Communities and stakeholders along the Eastern Gas Network (EGN) have given the Nigeria National Petroleum Petroleum Corporation Limited (NNPCL), and
Pipeline Infrastructure Nigeria Limited (PINL) a two-week ultimatum to settle outstanding payments to surveillance contractors and guards of the gas pipelines.

The communities also demanded for inclusion in all corporate social responsibility packages of both companies.
Speaking on behalf of the EGN host communities and stakeholders at a press conference in Port Harcourt, HRH, Eze Peter Wagbara, paramount ruler (Nye Nwe Ali) of Elele-Alimini Community in Rivers State said the communities are concerned that the surveillance contractors and guards are being owed backlog of their entitlements adding that this has adversely affected families that depend on the stipends for their survival.
He said the prolonged delay in the payment has created anxiety and dissatisfaction amongst members of the communities.
Wagbara warned that if the situation persists, it could undermine the goodwill existing among the communities, PINL and NNPCL.
“The surveillance guards have families and responsibilities. They depend on the timely payment of their earnings to meet basic needs, while community stakeholders have continued to support the programme and mobilise their people in the interest of pipeline security.
“The prolonged delay has understandably created anxiety, dissatisfaction, and uncertainty among our people. We are concerned that if this situation persists, it could undermine the goodwill and confidence that have been painstakingly built between the host PINL and NNPCL”.
The monarch emphasized that their ultimatum did not connote a withdrawal of their support for pipeline protection, but an appeal for the prompt fulfilment of the obligations that sustain their participation and commitment.
The communities therefore called on PINL and its client, NNPCL, to take immediate steps to reconcile all outstanding obligations and commence the reconciliation and payment of the full backlog owed to surveillance contractors, guards, and eligible community stakeholders along the Eastern Gas Pipeline Network.
They also demanded that both organisations should ensure that the payment of surveillance contractors, guards, and eligible stakeholders resumes promptly and is sustained in accordance with agreed contractual and administrative arrangements.
Wagbara added that Eastern Gas Pipeline host communities should be formally integrated into PINL and NNPCL scholarship, youth and women empowerment, and other community development programmes, based on transparent eligibility criteria.
The communities further requested that PINL and NNPCL should engage recognised traditional rulers and community stakeholders to communicate a clear payment schedule, address outstanding concerns, and establish a sustainable mechanism for resolving future disputes.
“We hereby give PINL and NNPCL a two-week grace period from the date of this public statement to resolve the outstanding payment issues and demonstrate concrete action towards the inclusion of our communities in relevant CSR programmes.
“We expect this period to result in meaningful progress, including the settlement of the backlog, the resumption of regular payments, and the formal inclusion of our communities’ in the relevant development initiatives, ” the communities stated.
They however noted that the operations of PINL has ushered in peace and security in their communities and along the gas lines, adding that their ultimatum was not intended to undermine the operations of PINL or NNPCL, nor was an attempt to discourage investment in their region.
They insisted that their demand was a necessary appeal for fairness, accountability, and the fulfilment of obligations to communities that have embraced the responsibility of protecting critical national infrastructure.
“Our communities have keyed into the vision of community-based pipeline surveillance. Our people understand the strategic importance of the Eastern Gas Pipeline Network to national energy security and economic development, and they have continued to contribute to its protection.
“We remain committed to peaceful engagement and constructive dialogue. However, the patience of our people must not be mistaken for an absence of legitimate concerns.
Oil & Gas
Pipeline Surveillance : IYC, Stakeholders, Task FG on Engagement With Host Communities
By David Owei
Stakeholders from oil and gas host communities in Bayelsa State including the Ijaw National Congress (IYC) Worldwide, have called for increased engagement between the Federal Government and the communities to ensure maximum security of the pipelines, and increased output for the country.
The stakeholders who spoke in Bayelsa State at the bi-monthly stakeholders forum with host communities convened by Pipeline Infrastructure Nigeria Limited (PINL), urged the Federal Government to copy the PINL model of regular engagement with host communities.
Comrade Famous Daunemigha, Second National Deputy President of the Ijaw Youth Council (IYC) Worldwide told journalists that since PINL started operations in the Eastern Corridor it has maintained regular meetings with host communities along the Trans Niger Pipeline (TNP) which he said has contributed greatly to the successes they have recorded in securing the lines.
He noted that the host communities are critical stakeholders and as such could not be ignored in the oil and gas value chain.
“PINL has done well, they are relating with all the critical stakeholders for over a period now. We can see there is ownership of the process. We all own it. We are now like partners in progress.
“The Nigerian government have also seen that when the people that own the pipeline, own the resources are part of the process of securing it, it’s easier for them to achieve peace. You can put 1,000 soldiers on the pipeline, you will not achieve it. But when the people are okay and happy with you, with the way PINL is doing, the people will be part of it, they will own it, leading to steady oil production, ” he said.
The Ijaw youth leader noted that the state is recording zero-infractions on the lines because they have owned the process courtesy of PINL’s regular engagement with the host communities.
“There is no infraction. It means that the people that owned the resources are ready to protect it. This is feedback to the Federal Government that; look at the model that are being used by PINL by engaging the host communities as the owners of the resources and their subsidiaries. They can use that model and apply to their own dealings with us as well. By so doing, Nigeria will have a steady revenue which will trickle down to all of us”, he added.
A community leader, HRH, David Oseni Oseni of Elebele Community, Bayelsa State, acknowledged the company’s role in safeguarding their environment.
He also warned youths tampering with oil and gas pipelines because of the negative impacts on the communities and environment.
The monarch said PINL’s engagement with host communities has become a game-changer in the surveillance activities.
“Oil spill is doing more damage to the environment. Our food, our crops, our aquacultures, the negative impact is coming back to us, not the Federal Government, not these multinational, but to us.
“If we destroy the pipes today and the negative impact come to the environment, your family, your mother, your parents, everybody will suffer. So please, it’s a take home message.
Since PINL have decided to integrate the traditional rulers and the leaders of various communities, there is a relative peace, and we must learn how to sustain it and prove on it, ” he stated.
For Hon. Living Meeting, the lawmaker representing Ekeremor Constituency 2
“What the PINL is doing is seemingly primarily benefitting the Federal Government, but of a truth, our communities tend to benefit more. At a point, our oil infrastructures were suffering a lot of sabotage, and the impact of the sabotage was always creating havoc on our communities.
“When the pipeline is tampered and oil leaks to the rivers, it becomes a problem for our local fishermen to survive. Our environment cannot thrive without its natural habitat. So, what the PINL has done has also benefited us by way of protecting the infrastructure so that the devastation that comes with the equipment failure and everything can be contained,” he said.
The lawmaker while commending the operational strategy of the company, called on stakeholders of the host communities to sustain their support for the company.
Earlier in his address, Dr. Akpos Mezeh, General Manager, Community and Government Relations of PINL in his brief, informed the stakeholders that the state recorded a long period of zero-infractions on the TNP, especially from the months of August.
He reminded the stakeholders of their critical in helping the federal government achieve its 2027-2030 benchmark for oil and gas production.
“NNPC Limited has set ambitious production targets of 2 million barrels per day by 2027 and 3 million barrels per day by 2030, alongside a target of 12 billion standard cubic feet of natural gas production per day by 2030.
“For these ambitions to become sustainable realities, the security and integrity of pipelines and other critical infrastructure will be fundamental. This is where the role of host communities becomes particularly important.
“The communities through which these assets pass are not passive observers. They are partners in protecting the infrastructure that supports our national economy. Every pipeline protected is an asset preserved. Every incident prevented is production protected. Every timely piece of intelligence shared can help prevent disruption”, he stressed.
Oil & Gas
As Oil companies , Niger Delta Community Ask: Who Will Clean Up their exploited Environment
By David Owei
For families in Bille Kingdom, the water around them is more than a stretch of creek.
It is their means of movement, a source of livelihood and being part of everyday life ,it’s about tourism,aquatic splendor ,picnic and recreation and exploration of natural ambience.
So when reports of gas leaks and other environmental problems begin to raise concerns about the safety of the waterways, the issue is no longer just about oil production.
It becomes a question of how people will live, work and provide for their families.
Now, as International Oil Companies (IOCs) are divesting from onshore oil assets, residents of the Rivers State community in particular in particular and Niger Delta in general are asking yet another difficult question: who will take responsibility for the environmental problems left behind?
That question will take centre stage in Port Harcourt on September 29 and 30, when Spaces for Change (S4C), in partnership with the Nigeria Extractive Industries Transparency Initiative (NEITI) and the National Oil Spill Detection and Response Agency (NOSDRA), with support from the Ford Foundation, convenes the fifth National Extractives Dialogue.
The dialogue is themed “Remediation Before Divestment and Energy Transition: Amplifying the Bille Environmental Crisis.”
More than 150 stakeholders from the Niger Delta and beyond are expected to attend, including government officials, regulators, civil society organisations, host community representatives, academics and private-sector players.
Bille Kingdom, in Degema Local Government Area of Rivers State, hosts major oil assets including OML 18 and OML 24. The community is now at the centre of concerns over what happens to environmental liabilities as Nigeria’s oil industry undergoes major changes.
According to the organisers, reports from affected communities and preliminary field observations indicate persistent environmental challenges, including reported gas leaks affecting waterways, creeks, residential areas and agricultural livelihoods.
While technical assessments are still ongoing, residents are waiting for verified scientific findings and immediate relief measures, including access to clean water.
For people living in a riverine community, damage to waterways can quickly become a threat to livelihoods. Fishing, farming and transportation all depend on the health of the environment.
The organisers say this is why remediation must come before divestment and energy transition plans.
As IOCs transfer onshore assets to domestic operators, they argue that historical environmental liabilities must be properly identified and addressed so that communities are not left carrying the burden of decades of extractive activities.
The dialogue will provide residents of Bille and neighbouring communities an opportunity to engage directly with regulators, industry operators, security agencies and civil society organisations.
The press statement announcing the event was signed by Victoria Ibezim-Ohaeri, Executive Director of Spaces for Change (S4C).
For Bille residents, the issue is ultimately about more than who owns an oil asset.
It is about whether the water around their homes will be safe, whether their livelihoods can survive and whether the companies leaving will also leave behind a responsibility to restore the environment.
As Nigeria moves towards a new energy future, Bille is asking who will be responsible for the environmental cost of the old one.
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