Indigenous Operators Responsible For 15% Of Nigeria’s Oil Production And 60% Of Domestic Gas Supply – Simbi Wabote
Indigenous operators are responsible for 15% of Nigeria’s oil production and 60% of the Nation’s Domestic Gas Supply.
This was disclosed by the Executive Secretary of the Nigerian Content Development and Monitoring Board, Engr. Simbi Kesiye Wabote while delivering his Keynote address at the NCDMB Service Delivery Forum and Stakeholders Engagement on Monday 14th December 2020 in Abuja.
Wabote further said that NCDMB see Service Delivery as the effective implementation of the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act such that all stakeholders play their roles and enjoy the benefits of putting the NOGICD Act in place.
“Since inception in 2010, the implementation of the Act has resulted in 35% of in-country value retention compared to the less than 5% value retention before the NOGICD Act, Wabote said.
Excerpt is the text of his key note address:
We see Service Delivery as the effective implementation of the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act such that all stakeholders play their roles and enjoy the benefits of putting the NOGICD Act in place.
As stated in several fora, we are a regulatory agency saddled with the responsibility of monitoring and enforcing compliance with the requirements for Nigerian Content in the oil and gas industry. We also have additional mandate to develop in-country capacities and capabilities to enhance the deepening Nigerian Content in the oil and gas industry.
These dual roles mean that we have to perform our regulatory functions as well as grow the in-country capacities by serving as the catalyst for the industrialization of the Nigerian oil and gas industry and its linkage sectors.
Since inception in 2010, the implementation of the Act has resulted in 35% of in-country value retention compared to the less than 5% value retention before the NOGICD Act.
Before the Act, we had annual spend of $20 billion with little or nothing retained in-country. Today, I can confidently say that we spend over $6 billion in-country per year.
We have 2 world-class pipe mills and 5 impressive pipe coating yards.
About 40% of marine vessels used in the oil and gas industry are owned by Nigerians.
We have four (4) active dry-docking facilities in PHC, Onne, and Lagos.
Over 50,000 direct jobs have been created on the back of implementation of the Act.
We have 64 operating companies and about 7,000 oil and gas service companies pulling their weight in the industry. Just last week, I was in Apapa, Lagos to commission the Beamco Valve Assembly yard which will increase in-country value addition.
Our indigenous operators are responsible for 15% of our oil production and 60% of our domestic gas supply.
In fabrication, today Nigeria can handle fabrication of more than 120,000 tonnes per year.
In cable manufacturing, all cables required in the oil and gas sector are all manufactured in-country.
Over ten (10) million training manhours have been delivered via our Human Capacity Development Programs. No surprise that our indigenous workforce were able to sustain oil production at the peak of the COVID-19 pandemic lockdown.
In the last four (4) years we have delivered on the following strategic initiatives:
a. Completion and commissioning of our 17-storey headquarters building complete with 1,000-seat auditorium and multi-level car park;
b. Completion of 10MW power plant for supply of electricity to our new headquarters building and the industrial park in Bayelsa State;
c. Completion and commissioning of the 5,000bpd Waltersmith Modular Refinery;
d. Launch of the $200million Nigerian Content Intervention Fund recently increased to $350million with additional products for Working Capital and for Women in Oil and Gas;
e. Forensic Audit of NCDF Remittances with the recoveries close to $100million;
f. We have successfully exited appropriation since 2018 and we intend to maintain our self-funding status through the prudent management of Nigerian Content Development Fund entrusted in our care.
g. The only infrastructure in Africa for FPSO integration is available in Nigeria. The Egina FPSO which is the largest in the world was integrated in the SHI-MCI yard in Lagos.
h. STEM Education training for 1,500 teachers in Bayelsa and Katsina States;
i. Completion of thirty (30) ICT Labs in 9 states;
j. Completed the sea-time training for 20 marine cadets in international waters with another batch of 40 cadets enrolled;
k. Completed GSM training scheme for 1,000 participants in Kano State;
l. Completion of the upgrade of two (2) Vocational Technical Colleges in Akwa Ibom and Enugu states;
m. We secured approval for the $50million Nigerian Content Research & Development Fund
n. We launched NOGTECH HACKATHON and ENACTUS to nurture innovation amongst our young minds;
o. We have made steady progress in the implementation of Project 100. We sponsored the beneficiaries to local and international conference and exhibitions, organized technical training on Subsea systems, Project Production Management, and Business mentoring classes.
p. We have engaged the services of seven (7) Third Party Monitors to expand the coverage of our compliance and monitoring efforts to additional thirty (30) operators in the upstream, midstream, and downstream.
q. We have harmonized our Marine Vessel Categorization standards with that of NIMASA and NIWA.
r. We have also been able to simplify our statutory reporting templates and have since deployed the simplified template to the industry for use.
s. We organized the Nigerian Content Consultative Forum (NCCF) Retreat wherein we assessed the Forum’s activities and obtained feedback from industry stakeholders;
t. We organised Retreat for our Nigerian Content Managers in Uyo;
u. We held a one-day workshop to further Mainstream Women into the oil and gas sector.
The Board’s 10 Year Strategic Plan is hinged on five (5) pillars and four (4) enablers. Each of the pillars and enablers are supported by strategic initiatives meant to propel the oil and gas industry towards 70% Nigerian Content by 2027.
Some of our ongoing projects to achieve this target include:
Construction of 100hectares of oil and gas industrial parks spread across four (4) states complete with the provision of infrastructure and utilities to enhance local manufacturing;
Partnership for the local manufacturing of 1.2million composite LPG cylinders per year with the 1st phase scheduled for commissioning by the middle of next year;
Partnership for the establishment of additional modular refineries in Bayelsa and Edo States;
Partnership for the construction of 300MMscfd gas gathering hub for gas supply into the OB-3 pipeline;
Partnership to deepen LPG utilization in the North with the roll-out of LPG bottling plants and depots in ten (10) Northern States of Kano, Kaduna, Katsina, Bauchi, Nassarawa, Zamfara, Niger, Plateau, Gombe, Jigawa states and Abuja;
A look at our intervention map across the federation shows our push to bring our service close to all our stakeholders so that the impact of the Board is felt throughout the length and breadth of the country.
The Executive Order 001 issued in 2017 stipulates some specific requirements of MDA’s in the promotion of transparency and efficiency in the business environment designed to facilitate the Ease of Doing Business in the country.
In the area of Service Level Agreements, the Board has signed SLA’s with OPTS, IPPG, and NLNG thus covering about 98% of industry operators. These agreements have ensured that all the touchpoints in the placement of contracts in the industry are concluded within pre-agreed timelines.
The benefit of the SLA was evident in the Board’s record-breaking timely approvals of the NLNG requests for the Train-7 project.
Industry operators are aware of the 15-day rule in which they can take any request forwarded to us as approved if they get no response from the Board after 15 working days.
We have put in place fully manned SERVICOM team to provide timely response to telephone and email enquiries from the public.
We have published the templates, procedures, required per service on our website. Based on the feedback received from PEBEC, we re-engineered our website for ease of navigation and provided additional language translations to aid international enquiries.
We have established intimate relationship with SERVICOM and PEBEC to continue to benchmark our activities best practices.
We are glad that all these efforts have yielded results such that we have moved from the 27th position as of December 2019 to the 3rd position in the PEBEC report as the most improved MDA in Nigeria.
We will continue to focus on this trajectory to ensure that we remain the best in class amongst MDA’s in the service of our fatherland.
We will continue to promote professionalism, patriotism, team-work and demonstrate integrity as part of our core values. Our staff will continue to receive tailored trainings for career development, professional fulfilment, and sense of service delivery.
Our procurement and payment processes to vendors and suppliers will continue to be prudent, efficient, and pragmatic. We will continue to adopt most of the ways of working that enabled us to keep the Board functional despite the COVID-19 lockdown.
As we journey towards the 70% Nigerian Content target, we will continue to utilize industry platforms and fora like this to connect with our stakeholders to provide clarity on our mandate and ways to address any constraints of the industry.
The NOG conference is the platform where we utilize the Nigerian Content Seminar to zero-in on key provisions of the NOGICD Act and provide direct clarifications to Senior Leaders in the industry and others alike to remove any ambiguity on interpretation and to reinforce understanding of the Act in plain with the need for any lawyers.
The Nigerian Oil and Gas Opportunity Fair (NOGOF) is the platform we use to project the various opportunities in the funnel with a 5-year outlook compiled into a compendium.
The Practical Nigerian Content event (PNC) is used every year to share our report card on implementation the status of the strategic initiatives under the 10-year Strategic Roadmap.
Ladies and Gentlemen, permit me to say that we keen to be of service to all our stakeholders. We are always looking for ways to improve and provide greater value and experience to user of our services.
Let me use this opportunity to once again commend our SERVICOM team for their dedication and focus to get us to the top-Quartile of service delivery. I believe the entire staff and management of NCDMB also deserve accolade for the roles we all played in getting us to this point.
The real work has just started because according to the words of Alan Shearer, ‘It is easy to get to the top, staying there is harder’. Let us therefore re-double our efforts to remain at the top so that we will show others that our rise to the top is no fluke.
Let me also appreciate the PEBEC Team and the SERVICOM team for all their support and advisory. We look forward to greater collaboration in our strive for continuous improvement in line with our disdain for mediocrity.
I look forward to the report out of this Service Delivery Forum to see the areas we are doing very well and areas of improvement.
Thank you all for your attention.