The Managing Director, Nigeria Liquefied Natural Gas (NLNG), Dr. Philip Mshelbila and Executive Secretary, Nigerian Content Development and Monitoring Board, Engr. Simbi Kesiye Wabote with senior management of NLNG after inspecting the ongoing Train-7 project at Finima, Bonny Island, Rivers State on Friday as part of the 3-day Nigerian Content Stakeholders Retreat.
The Nigeria Liquefied Natural Gas (NLNG) has currently engaged 8,300 indigenous workers in the construction of its ongoing $5 billion Train-7 project, its Managing Director, Dr Philip Mshelbila has said.
He spoke during the company's engagement session with the Executive Secretary of the Nigerian Content Development Development Board ( NCDMB), Engr Simbi Kesiye Wabote in Finima, Bonny Island, River State recently.
According to him, the $5billon being undertaken by NLNG reached 52 per cent completion before the firm hired the services of more than 8,000 Nigerians with diverse skills sets.
Mshelbila spoke at the company's gas operational base in River State.
He said that the high-level engagement forum was part of the three-day Nigerian Content Stakeholders Retreat, adding that the programme has provided a platform for the two oil and gas industry leaders to sign an agreement on the Oil and Gas E-Market Place.
NLNG, in a statement made available to the media, said that the agreement will see the roll out of tender opportunities from the Nigeria LNG Limited on the E-Market electronic platform, with a view to assist in the implementation of a key provision of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The statement added that Section 106 of the NOGICD Act defines the “Oil and Gas E-Market Place” as a virtual platform for buyers and sellers of goods and services in the oil and gas industry that allows for speedy and transparent transactions.”.
Continuing further, Mshelbila, said that the relationship between NLNG and the NCDMB has been conscientiously nurtured over the years, with both parties striving ceaselessly to fulfil statutory obligations.
‘We recognise the role of the regulator and are happy you recognise that of the operator and the need for regular engagement, " he added.
He acknowledged the crucial role played by the Board in the take-off of the Train-7 project and assured of the company’s resolve to stretch its local content practice beyond mere compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
NLNG, he said engages in initiatives that would boost in-country productivity and economic diversification.
“We cannot have a better Nigeria unless we develop the capacities of Nigerians,” he said.
Mshelbilal lamented the difficulties, which NLNG is facing in getting adequate gas supply and the resultant under-production by its six plants to below 50 percent of their total installed capacity.
He remarked that feed gas to the NLNG plants comes mainly from some its joint ventures (JV) partners, including, Shell Petroleum Development Company (SPDC) Limited, Total Energies and Nigerian Agip Oil Company (NAOC), but their supply pipelines suffer recurrent vandalism, coupled with facility failure and low production from aging wells, resulting in serious disruption of supplies.
The Nigeria LNG, he explained, was exploring several options to mitigate the challenge, including partnering with critical security agencies to curtail vandalism on the pipelines and working with their JV partners to increase their gas production.
He added that the Nigeria LNG Board of Directors had also approved the gas procurement from other international and indigenous producers in the country, with the goal of enhancing the performance of Trains 1-6.
He expressed concerns over the abilities of deepwater gas projects to provide gas for the upcoming Train-7 and other future expansions by the International Oil and Gas Companies (IOCs), despite the significant progress made in the construction of the Train-7 plant.
The situation, he said, could lead to the completion of the plant without gas being available for it to liquify.
He solicited the Board’s support for the development of the deepwater gas projects, which, according to him, are critical to keep Trains 1-6 full and provide gas for Train 7 and future expansion plans.
In his response, Wabote said that the E-Marketplace will be a game-changer,which will enhance the Service Level Agreement (SLA) guiding the relationship between two organisations.
He said the Board decided to start with NLNG because the company’s record of excellence, stressing that the intention of the E-Marketplace is to increase transparency in the tender process, “remove human interference in business processes, move things electronically and achieve better results”.
He described the Final Investment Decision (FID) and other critical steps that were taken for the Train-7 project taken at the height of COVID-19 as a proof of stakeholders’ enthusiasm for the project.
He expressed concern over the challenges of inadequacy of gas supply and promised to support the company along the lines of approving third party gas injectors and sanctioning new deepwater gas projects.
He added that “most of the marginal operators have also found gas but part of their challenge is where to send the gas.”
Caption:
Managing Director, Nigeria Liquefied Natural Gas (NLNG), Dr. Philip Mshelbila and Executive Secretary, Nigerian Content Development and Monitoring Board, Engr. Simbi Kesiye Wabote with senior management of NLNG after inspecting the ongoing Train-7 project at Finima, Bonny Island, Rivers State on Friday as part of the 3-day Nigerian Content Stakeholders Retreat.
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