A Review of the Nigerian Energy Industry

Nwapa advocates bigger projects for Nigerian contractors

Ernest Nwapa 130 December 2013, Lagos – Nigerians contractors in the oil and gas sector should begin to demand for bigger projects, Mr. Ernest Nwapa, executive secretary of the Nigerian Content Development and Monitoring Board, NCDMB, has advocated.

Nwapa who hailed Nigeria’s progress so far, in term of shoring up local content in oil and gas operations, was, however, of the view that the nation was still far from achieving the highest possible level in that regard.

He spoke at the event to mark the successful completion of the detailed engineering of the offshore living quarters of the Floating Production Storage Offloading, FPSO, for Total’s $13.35 billion Egina project.

The NCDMB boss, who maintained that the aim of his board was to create increased capacity for local Nigerian players as well as get increased level of work in the sector done in-country, said: “I just believe that in an FPSO project, that coming to have a big party like this for detailed engineering could send a wrong signal that we are already satisfied.

“We are not yet satisfied. So, as Nigerians, we are looking for bigger projects. Let us always take one project, put it in our pocket and ask for more. That is what we continue to say to Nigerian engineering contractors, fabricators and all our companies that are working in the industry”.

Still, he maintained that the completion of the detailed engineering for the Egina FPSO by a local contractor was a big step forward and should, therefore, be applauded.
“We are not just interested in seeing this project as if it is a dash, but as something that has become part of our way of doing business. We want to see it done in such a way that we layer it.

“We layer Ofon and then we layer Egina on top of Ofon and we put our learning together, so that we do not dissipate that, which we are doing. I am very sure that Samsung knows this because this is the way they themselves became a big international company,” Nwapa stated.

Bribery and subterfuge were alleged to have characterised last year’s award of the contract for the Egina FPSO to the South Korean company, Samsung.

The Nigerian National Petroleum Corporation, NNPC, was said to have set aside its three-tier contract tendering process to ensure the South Korean firm grabbed the contract.

Bribery allegations were levelled against Samsung officials, a ranking official of the Ministry of Petroleum Resources, a relation of the ministry official and officials of the NNPC, who were alleged to have actively aided the subversion of the corporation’s contracting process to favour Samsung

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