The Oil Producers Trade Section, OPTS, comprising all international oil companies, and their indigenous counterparts under the aegis of the Independent Petroleum Producers Group, IPPG, met with the leading pipe manufacturing companies and pipe coaters as well as the NNPC Upstream Investment Management Services, NUIMS, at the instance of the NCDMB to take stock of progress made since 2011.

In opening remarks at the one-day “Stakeholders Workshop on Manufacturing of Line Pipes in Nigeria: Processes, Challenges, and Opportunities,” which held at the Nigerian Content Tower (NCT), Yenagoa, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, described line pipes as “a major driver in oil and gas industry operations,” adding, “without line pipes you cannot evacuate products.”

He said the Nigerian Oil and Gas Industry Content Development, NOGICD, Act, 2010, envisaged 100 per cent in-country manufacture of line pipes (seamless and welded pipes) and that the Board, in conjunction with the OPTS, had agreed on an initiative in 2011 to work towards attainment of that target.

The NCDMB boss noted that a lot still had to be done and that status reports of projects on line pipes would have to be presented and discussed at the workshop so as to determine appropriate measures by all stakeholders to intensify efforts to overcome teething problems if any.

Engr. Ogbe, represented by the Director of Monitoring and Evaluation, Alhaji Abdulmalik Halilu, disclosed that in realisation of the potential of in-country manufacture of line pipes for retention of significant revenue and job creation, the Board had introduced different policies and remained determined to work with industry players for meaningful progress.

In setting the tone for the workshop presentations and deliberations, he posed six questions to which he sought answers from the participants: Should we continue to focus on making line pipes in Nigeria? Where are we on the ‘Made in Nigeria’ line pipes projects? Are there still opportunities for Made-in-Nigeria line pipes? What should be the main considerations for ‘Made-in-Nigeria’ line pipes (infrastructure imperatives, investment incentives, etc.)? Who should invest and who are the buyers? What policies would drive the delivery of ‘Made-in-Nigeria’ line pipes?

In his own remarks, the Director, Capacity Building, NCDMB, Dr. Ama Ikuru, explained that the Board and the entire oil and gas industry were focused on Made-in-Nigeria line pipes, because it was “the key to Nigeria’s industrial development and a critical requirement of the NOGICD Act, 2010, and the Presidential Executive Order on Local Content.”

He noted that Made-in-Nigeria line pipes were a “reputation driver for the NOGICD Act” and were “central to the attainment of the 70 per cent objective of NCDMB’s [Nigerian Content] 10-Year Strategic Road Map.”

In addition, the initiative would reduce costs and eliminate mark-up by middlemen.

Dr. Ikuru pointed out that there were major oil discoveries across Africa as well as opportunities in Nigeria and other parts of the continent, supported by the African Continental Free Trade Area (AfCFTA).

Line pipe opportunities in Africa highlighted included the Trans-Saharan Gas Pipeline, African Renaissance Pipeline and Transmed Gas Pipeline.

On interventions by the NCDMB toward establishment of pipe mills in the country, he said the Board, among other things, introduced the Equipment Component Manufacturing Initiative (ECMI) and issued guidelines on it, which “birthed issuance of the Nigerian Content Equipment Certificate (NCEC).”

The NCEC scheme of the Board is designed to promote and enforce the utilisation of locally manufactured goods, services, and equipment in the oil and gas industry.

Before presentations by key manufacturers of line pipes, representatives of the leading IOCs and Independents, all industry holders in attendance had to state their individual responses and viewpoints regarding the six posers earlier raised by the NCDMB Executive Secretary.

In unison, all declared that Nigeria should continue to focus on making line pipes in-country to meet the target of 100 per cent.

Key manufacturers then proceeded to explain where they were in their respective projects, highlighting status reports as well as challenges (in some cases), and what should be main considerations.

The Managing Director, Brentex Petroleum Services Limited, Mr. Chidi Nzerem, disclosed that his company had made appreciable progress in developing an LSAW Line Pipe Mill in Calabar, Cross River State, but had faced difficulties in securing long-term funding from the banks after investing over US$64 million.

To take the project to completion stage, an additional US$176 million would be required.

He pointed out that “Nigeria sits on oil and gas and there must be commitment to manufacture line pipes” to eliminate capital flight through importation of pipes.

He assured stakeholders that “within the next 36 months, line pipes will start rolling out from the mill if the required funds become available.”

For another industry player, Frigate Pipe and Tubulars Limited, whose seamless pipe mill plant has progressed without hiccups, status report was that the bulk of the manufacturing line has been acquired and that installation of the facility would be completed within the next 24 months.

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The Chief Financial Officer of the company, Mr. Bankole Olugbile, said industry demand for seamless line pipes in Nigeria is 120,000 metric tonnes per annum, which could be easily met, but he pointed out that “projects like this require long-term cheap funding.”

He called for incentives, such as pioneer status, among others, from government.

From Yulong Steel Pipes Limited, a pioneer in the industry that had suspended production operations in Nigeria for five years after supply of 2,000 metric tonnes of line pipes to Dangote Refinery, Lekki, Lagos, was news of its reentry into the country.

Its representative declared that the company was looking forward to business from Trans-Saharan Gas Pipeline and Shell Petroleum Development Company’s Bonga North, among others.

Pipe coating companies, including Solewant Group, Monarch Alloy, and Tenaris, also gave their respective status reports and highlighted what they expected from oil and gas industry operators.

International oil companies affirmed that there were opportunities for Made-in-Nigeria line pipes and expressed keenness to do business with manufacturers in the country.

Mrs. Chioma Okpoechi, Supply Chain Manager (Production and Logistics) of Shell Petroleum Development Company, provided procurement data on line pipes from her company indicating that US$43 million was spent between 2019 and 2014.

According to her, “steadily our operational requirements are growing” and that US$115 million was to be spent in the next four years.

Mrs. Okpoechi expressed hope that “this should encourage Made-in-Nigeria manufacturers,” although she cautioned that quality and timeliness of delivery cannot be compromised.

Assurances were also received from Exxon Mobil, which urged local manufacturers to strive for cost competitiveness and ensuring that they understand what the oil and gas industry upstream needs.

TotalEnergies also gave assurance of support for local manufacture.

Seplat Energy Plc, a leading Independent operator from among the indigenous upstream players, represented by its Nigerian Content Development Manager, Mr. Simeon Ogari, declared “We are 100 per cent in support of Made-in-Nigeria line pipes,” stating that the company was “a product of local content.”

Another leading indigenous oil company, First Exploration & Production (First E&P), represented by its Project Manager, Engr. Soyemi Ayodeji, also pledged total support.

In rounding off presentations and deliberations, Dr. Ikuru, reminded participants that responsibilities for advancement of the programme for Made-in-Nigeria line pipes needed to be assigned.

Manufacturers commended NCDMB for its practical role as business enabler, citing a number of the Board’s interventions that have facilitated the emergence of many big indigenous companies, but said the Board could do more by helping to eliminate illegal importation of coated line pipes, particularly by marginal field operators.

Also that the Board should play a role in facilitating access of manufacturers to credit facilities from banks.

Dr. Ikuru acknowledged that the suggestions made were appropriate but advised that the manufacturers could employ whistleblowing as a way to bring such illegal importation to the knowledge of the Board and Government.

“We’ll follow up,” he assured.

Also contributing, the Director, Project Certification and Authorisation Department, PICAD, of NCDMB, Engr. Abayomi Bamidele, said the Customs and Excise Department had a role to play, and that manufacturers and coaters of line pipes could team up and prepare a draft bill, which should be submitted to the National Assembly for a law to bring in the Customs Department to play a role.

The NCDMB and all stakeholders agreed that platforms like the Stakeholders Workshop should hold regularly, and that it would be desirable for similar platforms where financial institutions could participate, given the critical importance of funding.

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The partnership opportunities were explored on Tuesday when the Executive Secretary NCDMB, Engr. Felix Omatsola Ogbe, hosted his counterpart from UBEC, Dr Hamid Bobboyi, at the Board’s Abuja liaison office.

The leaders agreed to set up a joint committee that would finalize details of their agencies’ collaboration, with the overall goal of contributing meaningfully to the future of the Nigerian economy.

The kernel of the meeting attended by the top management of both organisations centred on how NCDMB could partner UBEC to upgrade some dilapidated primary and junior secondary schools dotted across the country, train teachers and upgrade critical facilities to meet the demands of the present age.

Conversations also hovered around making basic education work sustainably, developing digital resource centres and smart school systems as well as synergising efforts of stakeholders in the education sector for maximum impact.

Before this engagement, NCDMB had developed over 150 ICT centres in secondary schools across the country and upgraded select technical colleges as well as intervened in some universities as part of its institutional strengthening programme, supported by international and indigenous oil producing companies.

In his remarks, the Executive Secretary of NCDMB announced the introduction of a bespoke capacity-building project tagged “Back to the Creeks/ Villages.”

The initiative would seek to revamp dilapidated primary schools, especially in the creeks of the Niger Delta and other parts of the country, develop their infrastructure, teaching personnel and curriculum to world-class standards and make the interventions sustainable.

Ogbe revealed his passion for contributing to the development of remote parts of Nigeria and mentioned that he had started engaging some international oil producing companies.

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He hopes the oil companies will embrace the initiative and channel their human capacity development (HCD) budgets to the new programme for symbiotic benefits.

He underscored the strategic need to begin at the basic education level to develop capacities of young Nigerians, rather than intervening at the senior secondary or tertiary levels.

The Executive Secretary said the detailed strategy for the “Back to the Creeks/Villages” was still being fine-tuned and would soon be unveiled to industry stakeholders.

He assured the UBEC boss that NCDMB would partner with the agency, beginning with the training of teachers, harping that the success of the collaboration would attract other entities to partner with UBEC.

He emphasised the need to develop complete project scopes and to make every intervention sustainable.

This can be achieved he explained, by deliberately getting the benefitting communities to take ownership of the projects.

Earlier in his remarks, the Executive Secretary of UBEC suggested that NCDMB should partner with the agency to develop, equip and operate Digital Resources Centres and Smart School Solutions in states of the federation.

The UBEC boss bemoaned the embarrassing state of basic educational institutions across the country and remarked that a nation that neglected the first level education had invariably embraced a bleak economic future and dysfunctional society.

He rued several challenges that impact the development of basic education in the country, such as insufficient budget, and lack of interest by some state governors,  among other issues.

He highlighted the need for collaboration with stakeholders, to leverage extra resources for the sub-sector.

In their contributions, the Director, Corporate Services, NCDMB, Dr. Ama Ikuru, commented that NCDMB’s interventions in schools and other centres of learning in the past 14 years were in furtherance of its mandate of building requisite capacities for the Nigerian oil and gas industry and linkage sectors.

Likewise, the Director, Monitoring and Evaluation, Mr. Abdulmalik Halilu, advised that the Board’s collaboration with UBEC must be guided by four pillars, notably needs assessment, sustainability plans, enablers for execution and identification of funding sources.

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The project was funded by the Nigerian National Petroleum Company Limited, NNPC; Shell Nigeria Exploration and Production Company Limited, SNEPCo, and its co-venture partners; and  the Nigerian Content Development and Monitoring Board, NCDMB.

The inauguration of the project was cheered by stakeholders from around the Niger Delta who expressed their expectation that the facility would offer students, lecturers and researchers the resources and connectivity to keep them in step with global ICT standards.

“This project is a good shot in the arm of the Niger Delta University,” said Bayelsa State Governor Duoye Diri in an address delivered at the inauguration on his behalf by the Deputy Governor, Lawrence Ewhrudjakpo.

He said Bayelsa State government was ready to partner with NNPC/SNEPCo in other areas of development.

Managing Director, Shell Petroleum Development Company of Nigeria Ltd., SPDC, and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, commended the collaboration that led to the execution of the “landmark project.”

Managing Director SNEPCo Elohor Aiboni, said the project was “the culmination of a vision shared by NNPC, SNEPCo, co-venture partners, NCDMB and NDU,” describing it “as a powerful symbol of what can be achieved when we unite for a common goal – empowering our people.”

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The NCDMB Executive Secretary, Omatsola Egbe, represented by Director, Corporate Services, Ama Ikuru, said the project would support NDU to produce “quality graduates for the Nigerian oil and gas industry and propel the delivery of Nigerian content development.”

Chief Investment Officer, NNPC Upstream Investment Management Services, NUIMS, Bala Wunti commented on the partnership behind the project:  “Together, we have created a resource that will benefit our community for years to come. NNPC is honoured to have played a major part in this collaborative endeavour.”

Vice Chancellor of the university, Professor Allen Agih, thanked NNPC, SNEPCo, the co-venture partners – ExxonMobil, Total Energies and Nigeria AGIP Exploration Limited – for providing an “iconic edifice” that would facilitate teaching and learning in the institution.

The structure boasts three floors with a fully equipped digital library and a collaborative learning centre.

Local contractors played key roles in various aspects of the project and 24 individuals from the Niger Delta University acquired experience in complex engineering works through onsite training.

The social investment initiatives of NNPC, SNEPCo and co-venture partners have made positive impact in many areas, helping internally displaced Nigerians to rebuild their lives, enhancing treatment and care for cancer patients and supporting students to achieve their educational dreams in top-rated secondary schools and universities.

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