Connect with us

Oil & Gas

FG Saved N3.5trn On Oil And Gas Projects

Published

on

FG Saved N3.5trn On Oil And Gas Projects

The federal government has saved N3.5trn ($8.5billion) as it achieves 42 per cent local content in $20.4bn oil and gas projects.

The Executive Secretary of the Nigeria Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote disclosed this at the opening of the 10th edition of the Practical Nigerian Content (PNC) forum held at the NCDMB headquarters in Yenagoa Bayelsa.

Wabote who spoke on the theme, “Driving Nigerian Content in the New Dawn of the Petroleum Industry Act,” added that Nigeria is on track to achieve 70 per cent manpower content in Nigeria’s oil and gas sector in 2027.

He also gave an overview of the Nigerian content performance in the areas of Engineering, Procurement, Fabrication, Project Management, and Services under the 10 years’ strategic roadmap.

According to the ES, projects worth $20.4bn were carried out between 2016 and 2020 with estimated 42% Nigerian content performance.

He highlighted the spending categories to include $8.07billion on Fabrication representing 39% of spend; $4.74billion on Engineering services representing 23% of spending, and $5.67billion on Procurement of manufactured materials representing 28% of spend.

The low spends were $1.18billion on Services representing 6% of spend and $746million on project management representing 4% of spend, he stated.

He said, “Based on the above data, the aggregated level of Nigerian Content across the five categories is established as 42%.

“It is however pertinent to note that while the NC performance in Engineering as one of the top-3 spend areas is above the 70% target, there is need to focus on the other two areas namely: Fabrication and Procurement of materials if we are to realise the 70% target by 2027.

That is why we are keen to ensure that the established in-country fabrication yards are utilized for sanctioned projects such as NLNG Train-7 as well as drive local manufacturing of goods such as chemicals, hardware, spares, accessories, and other consumables via our commercial venture partnerships and our oil and gas industrial parks.”

Wabote stated further that the implementation of the PIA (2021) has further reinforced the role of NCDMB in the oil and gas industry, adding, “we are poised to fully utilize the opportunity provided to derive maximum benefit for our country.”

Minister of State for Petroleum Resources, Timipre Sylva charged the board to stay focused on the implementation of the Nigerian Content 10-Year Strategic Roadmap to grow Nigerian Content to the targeted level of 70% by 2027.

Short Link: https://wp.me/pcj2iU-3F0W

NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. We are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and we strive diligently to ascertain the truth in every news report. Contact: editor @ nnn.ng. Disclaimer.