NCDMB, NLNG Meet on $7.6n Train 7 Project

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Emmanuel Addeh in Abuja

The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Liquefied Natural Gas (LNG) Limited yesterday formally commenced the Train 7 project with a meeting on the Engineering, Procurement and Construction (EPC) components of the project.

Executive Secretary of NCDMB, Mr. Simbi Kesiye Wabote, said the event which was held virtually, provided an opportunity for key NCDMB officials to clarify some technical details relating to the Nigerian content components of the project.

Describing the NLNG Train-7 project as a record-breaking, Wabote said the journey had been marked with many firsts, particularly in methodology, stakeholders’ 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.

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

According to him, “We must not just limit ourselves to the Nigerian content levels contained in 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 charged the contractors to adopt the winning spirit in respect to jobs creation, trainings for new skills, in-country capacity utilisation, addition of new capabilities, research and development as we as 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 of Nigeria LNG Limited, Mr. Tony Attah, described the contract award and execution of Train-7 as a clear demonstration of the commitment of NLNG and its shareholders to continue 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 would facilitate a controlled start to the execution phase of the project, with limited engineering activities for the first 12 months.

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

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.

Also speaking, the Managing Director of Saipem, Mr. Walter Peviani, applauded NCDMB and NLNG for the extensive work they did with the Nigerian content Plan.