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NNPC GMD Commends NETCO
NNPC GMD Commends NETCO for Engineering Feat

The Group Managing Director,Nigerian National Petroleum Corporation (NNPC), Engr. Abubakar L. Yar ‘Ádua has commended the engineering feat exhibited by NETCO and other Nigerian companies during the Bonga Floating Production Storage Offloading (FPSO) and other large projects like Erha and Abo.

The NNPC GMD gave this commendation while speaking during NNPC day at the 19th Enugu Trade Fair on Thursday, April 17, 2008.

According to Engr. Yar'Adua, the nation's technical capability in the upstream sector of the oil and gas industry was glaringly displayed as NETCO put in over 25,000 engineering man-hours while the buoy and flare boom were 100 per cent fabricated in Nigeria by Nigerdock and Globestar.

In the area of capacity building, the NNPC GMD said over 40 Nigerians benefited from hi-tech and high quality training programmes all within the project.

Engr. Yar'Ádua noted that through the Bonga FPSO project and others, the Federal Government target of achieving 45 per cent Nigerian content in 2006 was realized while concerted efforts are on to achieve the targeted 70 per cent in year 2010.

He said NNPC has now shifted emphasis to creating the same enablement for Nigerian entrepreneurs in the upstream sector through the Nigerian Content initiative adding that "NNPC Management through the Nigerian Content division has been actively engaged in promoting and monitoring local inputs to all ongoing and new projects in the upstream sector".

Explaining the role of the Nigerian content, Engr. Yar'Adua described it as an initiative that seeks to significantly improve the quantum of composite value added or created in the Nigerian economy through the effective utilization of human and material resources for the provision of goods and services to the oil and gas industry.

He said in spite of the laudable results thus far, new local content policy guidelines were issued in 2006 for full compliance by all Joint Venture and Production Sharing Contract (PSC) operators aimed at achieving full result. The guidelines according to the NNPC GMD include in-country fabrication of all fixed platforms, piles, anchors, buoys, jackets, bridges, flare booms and similar structures and storage tanks to maximize utilization of local fabrication yards.

The guidelines according to Engr. Yar'Adua also include domestication of Front End Engineering and Design (FEED) and detailed engineering design for all projects as well as seismic data processing projects and reservoir management studies as well as integration of Floating Production Storage Offloading (FPSO) topsides within the country.

To be able to build enough capital base and cope with the requirements needed in the industry, the NNPC GMD said the Corporation and a consortium of Nigeria Banks has established the $350 million Nigerian Content Support Fund (NCSF) through which serious Nigerian oil service providers can have access to single-digit borrowing as their foreign competitors.

On availability of petroleum products, he said this is bound to be on the rise with re-streaming of both refineries coupled with the fact that all the micro, small and medium enterprises which were adversely affected are now revived adding that with the activities in place in the refineries, there will be reduced products importation thus saving foreign exchange.

"In addition, in order to ensure continuous availability of petroleum products in our refineries, the 7th Turn Around Maintenance (TAM) of fuels and power plant and utilities of Kaduna Refining and Petrochemicals Company Limited (KRPC) has been approved by the Federal Government and will take place this year with over 90 per cent of the materials required already procured" the NNPC GMD said.