Peter Uzoho
The Assa North, Ohaji South (ANOH) Gas development project currently under construction in Imo State, has received a major boost with the delivery of the high pressure fuel gas skid to Shell Petroleum Development Company (SPDC) by Nivafer Engineering and Construction Limited, an indigenous Nigerian company.
The facility delivered to SPDC on Wednesday in the presence of top oil and gas players and some heads of government institutions at the Nivafer fabrication yard in Shasha, Akowonjo, Lagos, is of one the critical technological equipment needed at the ANOH gas facility to enable it push the targeted 250 million standard cubic feet of natural gas per day (scuf/pd) to the domestic market.
The project is one of the seven critical gas development projects and part of the National Gas Expansion Plan (NGEP) initiated and driven by the federal government to boost in-country natural gas supply.
NNPC had in February 2019, signed the Final Investment Decision (FID) with the Joint Venture (JV) partners for the gas project located at the Oil mining Lease (OML) 21 ANOH field to develop the 4.3 trillion cubic feet of gas on that asset.
The project is reputed to be one of the largest greenfield gas condensate development projects being undertaken in Nigeria.
Speaking at the unveiling, loadout and delivery of the skid to SDPC at the Nivafer fabrication yard in Lagos, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote, stated that the milestone recorded by the successful completion and delivery of the facility by the Nigerian firm, has deeply rooted the belief in the can-do spirit of Nigerian companies for local development.
Wabote added that the delivery of the equipment has also heightened the expectation of the ANOH project delivery.
While urging Shell to keep working towards the completion of the project, which he noted had been on the drawing board since 2002, the executive secretary expressed excitement at the successful fabrication of the skids by Nivafer.
Wabote said, “This is one of those happiest moments for me and I am excited because this fabrication was done by Nivafer, a Nigerian company with track record.
“The successful fabrication of this skid undertaken by Nivafer for Shell, a company that gives optimum priority for Health, Safety and Environment (HSE), has also confirmed Nivafer’s expertise and reaffirm the can-do spirit of local companies as well as our seriousness of delivery of local content development.
“The local content development was the saving grace for a lot of projects during COVID-19 pandemic when the Europe was totally locked down. This is because some yards in Nigeria were able to work while all others in Europe were locked down.”
The Managing Director of Nivafer, Mr. Chris Ijeli, said that the growth of the company, which was established in 1977 was fuelled by the Nigerian Local Content Act.
Ijeli pointed out that aside the HP fuel gas skid being unveiled and loaded out for the ANOH gas project, they had fabricated modules and manifolds for the project and had also constructed pressure vessel for the Saipem JV, the contractors handling the Nigerian Liquefied Natural Gas (NLNG)’s Train 7 project in Bonny Island, Rivers State.
He said the company had taken advantage of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to nurture a company that is now known for world-class expertise in the fabrication work in the oil and gas industry.
“Aside this HP fuel gas skid being unveiled and loaded out for Asa North gas project today, we have fabricated Modules and Manifolds for Asa North gas project. We have also constructed pressure vessel for Saipem JV in Train 7 project.
“We have handled fabrication and construction of gas engineering asset for NIPCO.
“What we have here is a major milestone in the Nigeria’s local content development,” Ijeli said.
He commended Shell for partnering with the company and thanked the Wabote-led NCDMB for leading the local content success story while appreciating the Tokunbo Coker-led board of Nivafer Engineering and Construction Limited for support.
Ijeli added, “The successful execution of the contract for Engineering, Procurement, Construction and Installation of the Assa North Gas Project as awarded to NIVAFER by Shell Petroleum Development Company in April 2019, is yet another remarkable achievement.
“At the time of the award, Nivafer’s quality management system was certified to ISO 9001:2015 which was one of the requirements that provided the technical basis for the award by SPDC, with further requirements to close some identified gaps before the activation of any Workscope package and actual commencement of work on the project.
“It clearly means that the Nigerian Local Content Act is a success because Nigerian companies, technicians and engineers have acquired expertise, and built capacity that has increased indigenous participation in the Nigerian oil and gas sector. With the Local Content Act, we have made significant progress as a nation and assumed a position of dignity amongst international oil companies (IOCs), and other players in the sector, who are the beneficiaries of our first-rate services.”
The General Manager, Conventional Oil and Gas, SPDC, Mr. Afolabi Ojo, said the delivery of the gas treatment skid to his company was a landmark achievement by all parties involved in the ANOH gas project.
“Today is indeed a day worth replicating. It’s a landmark achievement of all parties: Nivafer, Shell, NCDMB, TotalEnergies, NAOC, everybody, who is involved in the Assa North project. We particularly recognise and appreciate NCDMB for recognising the Shell brand and indeed, Shell’s contribution to local content development in Nigeria.
“We’ve come to celebrate today, the transfer of technological knowledge and expertise to Nivafer. Nivafer has built the fuel gas treatment skid and this is the testimony to SPDC’s commitment to advancing local content. Nivafer Steel Construction Limited is a Nigerian contractor in the Nigerian oil and gas industry. They constructed the gas treatment facility and receiver vessels for Assa North and they have done a great job,” he said.
He said the projec was part of government’s aspirations to grow indigenous domestic gas market for additional power and industrial projects.
According to Afolabi, the ANOH gas project is the most advanced of the federal government’s seven critical projects and that the project was expected to develop 3.4 trillion scuf of natural among other expectations.
“The SPDC partners in the ANOH Gas Project are NNPC -55 per cent stake, Shell -30 per cent stake, TotalEnergies -10 per cent, and Eni -five per cent.
Upon completion of this project, it will deliver 250 million scuf per day of natural gas and also sell 20,000 barrels of condensate to nearby refinery. The project included drilling of six wells,” he added.
