Shell pioneers manufacture of local made carbon steel pipes

04 September 2012, Sweetcrude, LAGOS – THE Shell Petroleum Development Company, SPDC’s, Local Content initiative has recorded another major success.
The first set of carbon steel pipes manufactured in Nigeria for SPDC’s Trans-Niger Pipeline is now ready for use, the company said.

“This is a perfect example of promoting the use of locally manufactured goods and Nigerian service companies in production operations, projects and well engineering,” said Igo Weli, General Manager, Nigerian Content Development, SPDC. “It supports the Federal Government’s drive to increase Nigerian participation in the oil and gas industry.”

In accordance with SPDC’s safety guidelines, the line pipes have successfully passed quality assurance and control tests.

The original line pipe contract for $37 million was agreed with Nigerian manufacturer SCC Nigeria Limited in the third quarter of 2011, and work began immediately. The manufacturing facility was established, contractor staff trained and the first batch of line pipe delivered within 12 months of the contract award.

Acknowledging SPDC’s contribution, Ernest Nwapa, Executive Secretary of the Nigerian Content Development Monitoring Board said: “SPDC has continued to demonstrate its support for Nigerian content development. This is an example we wish to see replicated across the Nigerian oil and gas industry.”

Shell companies in Nigeria are also supporting the Nigerian Institute of Welding, NIW, to establish a world-class testing centre in Benin, Edo State, with the objective of training welders who will provide the workforce needed in the industry.

Shell has also facilitated meetings between Nigerian entrepreneurs and their counterparts in Britain and China to explore partnership opportunities.
In 2007, SPDC started the Community Content Initiative to address the needs of communities and community vendors in search of opportunities to render goods and services to the oil and gas industry.

Shell companies in Nigeria have won three separate awards this year in recognition of their local content performance. They won the Excellence in Local Content – 2011 award at the Nigeria Oil and Gas, NOG, Conference in February, while the Petroleum Technology Association of Nigeria, PETAN, handed out the Leadership in Local Content award to the Country Chair of Shell Companies in Nigeria, Mr. Mutiu Sunmonu at the Offshore Technology Conference in Houston in May. Also, the National Association of Energy Correspondents, NAEC, at their annual conference in Lagos on 30th August, conferred on Shell Companies in Nigeria, Local Content Empowerment Company of the year.

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