NCDMB: Work on $10bn Train 7 Project to Accelerate This Month

By Peter Uzoho

After over one year drawback as a result of the COVID-19 pandemic, the Nigeria Content Development and Monitoring Board (NCDMB) has stated that construction work on the $10 billion Train 7 project of the Nigeria Liquefied Natural Gas (NLNG) Limited will be accelerated this month.

The Executive Secretary of NCDMB, Mr. Simbi Wabote, said this in Lagos, recently, at a media briefing heralding the third/ 2021 edition of the biennial Nigeria Oil and Gas Opportunity Fair (NOGOF) which will hold virtually between May 25 and 26, 2021,
Wabote said despite all challenges, the contract for Train 7 which comprised the midstream and upstream was signed by the stakeholders as part of the opportunities existing in the Nigerian oil and gas industry.

“But despite all that challenge, we were able to sign the contract for the Train 7 today, which is almost about $5 billion worth of opportunity that came into the country.
“So, when you look at it, in 2020, we signed that Train 7 contract. Hopefully, this May, I think activities will accelerate with regards to the Train 7 project that will come into effect. And once that opportunity comes, the upstream opportunities will kick in,” Wabote said.

He said for each of the midstream and upstream sides of the Train 7 project, there was $5 billion opportunity in it, adding that, “despite the $5 billion for the Train 7 project, there is another $5 billion out there for the upstream opportunity. So, in the whole process, you see that we’ve been able to lock almost about $10 billion only on the Train 7 project”.

While noting that work on the Train 7 project had been slow in reaching advanced stage and keeping the fabrication yards busy, he assured the local vendors that work would start to accelerate this month.

“It has been slow, to be fair, in coming to full steam to keep the various yards in the country busy.

But I have been told that by this May, things will begin to accelerate. And I’m sure, a lot of those Nigerians vendors that are within the 50 per cent bracket could benefit immensely from the opportunity,” he said.

Wabote, who attributed the continuous activities in the upstream sector despite the pandemic to the capacities brought into the sector by the board, said oil production had never stopped in the country throughout the period.

According to him, “vessels were working, people were going in, logistics was being provided back and forth because most of the offshore platforms are still manually being controlled.”
He said most of the upstream opportunities are in the contracting phase, adding that by the third or fourth quarter of this year, they would sign contract to develop those upstream opportunities.

On the NOGOF, which has its theme as, “Leveraging Opportunities and Synergies for Post Pandemic Recovery of the Nigeria Oil and Gas Industry”, the executive secretary said the event would feature technical and opportunity sessions from various stakeholders, a virtual tour by delegates, and award ceremony.

He said the theme of the NOGOF was important as it acknowledges the industry-wide disruption occasioned by the COVID-19 pandemic and encourages constructive discussions on recovery and the way forward.