The Nigerian Content Development and Monitoring Board (NCDMB), and the Nigeria LNG (NLNG) Limited, yesterday, agreed to collaborate to roll out tender opportunities from the gas production and processing company on the Oil and Gas E-Marketplace.
The move is in line with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which has not been implemented since the enactment of the law in 2010.
Indeed, Section 106 of the NOGICD Act defines the “Oil and Gas E-Marketplace 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.”
Speaking during the Nigerian Content Seminar at the Nigerian Oil and Gas Energy Week (NOG 2023) in Abuja, the Executive Secretary, NCDMB, Simbi Wabote, informed that the roll out of the E-Marketplace project would be carried out in phases and would be starting with the NLNG.
He said a joint working committee comprising members of the company and the Board was formed to co-create the Blueprint for the Phase-1 implementation of the E-Marketplace.
Subsequent phases of the project will include members of the Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), and the other stakeholder groups.
He commended the management and staff of Nigeria LNG Ltd for being ever ready to comply with the provisions of the NOGICD Act and for demonstrating genuine willingness to partner with the Board in various initiatives.
Wabote recalled that the Service Level Agreements (SLA) was initiated with the company in 2017, to drive the timely approvals of requests submitted to the Board.
He explained that the Board uses the Nigerian Content Seminar to discuss the various elements of the NOGICD Act with industry operators, service providers and other stakeholders in the industry.
He added that this year’s seminar provided a platform to clarify the provisions of the NOGICD Act (2010), the Ministerial Regulations, guidelines, tools and initiatives.
The Oil and Gas E-Marketplace 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.
Enabling law
Speaking on various segments of the NOGICD Act, Wabote quoted Section 70(h) to justify the Board’s assistance of local contractors and support for Nigerian companies to develop their capabilities and capacities to boost content development in the petroleum industry.
He said such clarifications became imperative to correct the wrong perception that the Board is acting outside its mandate by supporting and partnering companies in strategic business ventures, including the funding support and other initiatives that are directed toward developing both human capital and infrastructure.
He listed some of the initiatives to include the $300million Nigerian Content Intervention Fund with the Bank of Industry (BoI), the $100million Matched Fund with NEXIM Bank, the $50million R&D Intervention Fund, and the $50million NOGAPS Manufacturing Fund.
Others include partnering with local businesses to establish modular refineries, gas processing plants, LPG storage facilities, base oil production plant, LPG depot and refilling plants, and others with clear exit plans once the target goals are achieved.
Wabote also admitted that there are severe challenges negating manufacturing in the oil and gas industry, which is why the Board is developing the NOGAPS Industrial Parks to provide modern infrastructure using the “sites and services” model to support in-country manufacturing.
He added that these Parks are at various stages of development in seven states namely, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, and Ondo states.
“The NOGAPS Industrial Parks at Odukpani in Cross River State and the one at Emeyal-1 in Bayelsa State are both at advanced stages of completion and will commence operations in 2024.”
He added that the Board has commenced the allocation of manufacturing shop floors and service plots at the Odukpani and Emeyal-1 parks to qualified applicants.
He also appreciated the contributions of the oil majors, including the Shell Petroleum Development Company Joint Venture, and the ExxonMobil Joint Venture for their contributions to the industrial parks using the CDI programmes.
