info@equitypetroleum.com | | |

Train 7 project gets underway as NCDMB, NLNG hold EPC contract kick-off meeting

source Emergy Mix Report on Jun 27, 2020

The Train 7 project is set to commence in earnest as the Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian LNG Limited Tuesday held the kick-off meeting of the Engineering, Procurement and Construction (EPC) components of the project.

The event was held virtually and it provided an opportunity for NCDMB key officials to clarify some technical details relating to the Nigerian Content components of the project.

The Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote in his goodwill message described the NLNG Train-7 project as record-breaking, noting that the journey had been marked with many firsts, particularly in methodology, stakeholder awareness and participation and speed of completion of the regulatory approvals by the Board.

He further described the signing of the Train-7 contract in the middle of COVID-19 as a global record, adding that it gave Nigerians the must-needed boost in the midst of the current challenging times.

He challenged the lead contractors – Saipem, Chiyoda and Daewoo (SCD) joint venture and subcontractors to set Nigerian Content records during the project implementation phase.

He insisted that “we must not just limit ourselves to the Nigerian Content levels contained the Nigerian Content Plan (NCP) and the Nigerian Content Compliance Certificate (NCCC).

We must push the boundaries so that upon completion we can brag about the values that the project would have added to the oil and gas industry as well as the country at large.”

He further charged the contractors to adopt ‘we can do it here’ spirit with respect to jobs creation, trainings for new skills, in-country capacity utilization, addition of new capabilities, Research and Development and uncommon innovation into territories uncharted.

While congratulating SAIPEM for the in-country capacity it had developed over the years, he said the company was obligated to use the project to pull along other smaller Nigerian businesses.

In his opening remarks, the Managing Director, Nigeria LNG Ltd, Engr. Tony Attah described the contract award and execution of Train 7 as a clear demonstration of the commitment of NLNG and its shareholders to continued investment in the Nigerian oil and gas sector with the attendant creation of capacity, competency and value.

He announced that the challenges of the pandemic had compelled NLNG and the SCD JV to agree on scope adjustments that will facilitate a controlled start to the execution phase of the project, with limited engineering activities for the first 12 months (‘Pivot Period’).

He said the engineering design office will open in Nigeria in August, but the bulk of fabrication and manufacturing activities will be suspended until the COVID-19 pandemic is under control.

According to him, “the parties have agreed mechanisms that will facilitate a ramp up and pivot into the full scope of work as soon as clearly defined indices are achieved at which point the more traditional expectations of the project execute phase will come into play with full mobilization of the contractor to site.”

He added that “the critical mass of construction and fabrication activities will take off when the pivot into the full project scope occurs.”

The MD confirmed that Nigerian Content is one of the key value drivers for Train 7 as it will create jobs, deepen competency and capacity, unlock opportunities in the oil and gas industry and hopefully open the door for further expansion activities with the possibility of further LNG trains and projects.

He assured that NLNG will collaborate with the Contractors and the Board to deliver the agreed Nigerian Content, within budget, on schedule, in accordance with the highest standards of ethics and compliance, and a strong focus on HSE.

Attah also noted that Community Content is a key part of the project and requested the support of the Board to close the issue of Community Vendors that will participate in the project.

In his comments, the Managing Director of Saipem, Mr. Walter Peviani applauded NCDMB and NLNG for the extensive work they did with the Nigerian Content Plan.

He explained that the NCP created a clear path for the bidders with regard to Nigerian Content requirements and enabled them to structure their bids properly.

He described the implementation models adopted by the NCDMB was very effective, hinting that they would lead to lower cost of project execution and compliance with the project plan.


Source: Oriental News

More Insights
Nigeria needs a decade of gas utilization to transform sector – NLNG boss

The Managing Director of the Nigeria Liquefied Natural Gas (NLNG) Limited, Mr. Tony Attah, has said the declaration of 2020 as the ‘Year of Gas’ by the federal government was not sufficient to bring about the required transformation in the country through gas utilisation. He rather suggested that a decade should be dedicated to utilisation…

Nigeria to benefit from Chinese $15bn investment in oil and gas sector

Nigeria’s energy sector is about to receive a major boost from huge investment decisions from China, which is eyeing key exploration operations in the oil and gas sector in Africa. According to a Modern Diplomacy report, China has a whopping $15 billion worth of investments planned in Africa’s oil sector. This massive price tag is…

Nigeria cut oil production by 600,000 barrels daily – Minister

The Minister of State, Petroleum Resources, Timipre Sylva, on Monday, said Nigeria has cut its crude oil production level from over 2 million barrels a day to 1.4m barrels in compliance with the quota endorsed by the Organisation of Petroleum Exporting Countries (OPEC). Sylva said this at the Presidential Villa, Abuja, while fielding questions from…

‘Nigeria, others could face $20b loss in oil export revenue’ – Report

Nigeria and four other oil producers on the continent could each be facing $20billion or more in lost export revenue this year as global oil demand is estimated never to exceed 2019 levels, with energy markets having reached a tipping point, a new report showed yesterday. The PricewaterhouseCoopers’ (PwC) Africa Oil & Gas Review 2020,…

EPSNL Insights in a collation of Nigeria's oil and Gas Industry news and developments pulled together from various sources to enhance our site's user awareness...

Previous Insights
Nigeria’s hope of increasing gas supply for power generation suffers setback, yet again

Nigeria’s hope of boosting gas supply for power generation has suffered a setback again as the completion date for Obiafu-Obrikom to Oben (OB3) gas pipeline project has been postponed again because of technical hitches, BusinessDay investigation has revealed. The pipeline is meant to transport gas for power generation and other industrial developments in the country.…

FG approves Ladol Free Zone’s 25 years land lease

The Federal government has affirmed the Presidential approval issued in 2018, granting Global Resource Management Limited a- 25 year lease covering the entire area of the Ladol Free Zone. Chief Ladi Jadesimi, Chairman of Ladol, who disclosed this in a statement yesterday, said the lease was valid and subsisting, adding that all stakeholders to comply…

Nine oil firms, DPR disagree over oil mining fields licences

Nine oil firms have opposed an application by the Department of Petroleum Resources (DPR) seeking approval to sell or accept bids for eight Marginal Oil Fields (Oil Mining Licences, OMLs). Justice Chukwujekwu Aneke had on June 3 restrained the Federal Government from tampering with the OMLs pending determination of a suit challenging their status. He…