A Review of the Nigerian Energy Industry

Total’s Egina project attracts $1bn investment, says Nwapa

17 February 2015, Lagos – The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Ernest Nwapa has disclosed that over $1 billion has been invested in the Nigerian oil and gas industry to create capacity and execute the Nigerian Content scopes provided on Total’s Egina deep water project.

TotalEgina, Total Exploration and Production’s $15 billion deep water project is the first major oil and gas project to be started under the Nigerian Content Act.

The project includes a Floating Production Storage Offloading (FPSO) unit, an oil offloading terminal and subsea production systems such as risers, 52 kilometres of oil and water injection flowlines, 12 flexible jumpers, 20 kilometres of gas export pipelines, 80 kilometres of umbilicals and subsea manifolds.

Speaking at the weekend in Port Harcourt, Rivers State when he inaugurated Saipem’s new double/ quadruple joint plant, Nwapa explained that the investment worth $60 million was made towards delivering Saipem’s Nigerian Content scope on the Egina project.

He added that the plant was worthy of celebration as it confirmed that the Board’s strategy to include Capacity Development Initiatives (CDIs) in major projects was working.

Nwapa said CDIs would promote opportunities for training, knowledge and technology acquisition, adding that shop floors were expanding and capacity to execute work in Nigeria had increased substantially.

He reiterated that over $5 billion worth of investments have been made in Nigerian yards since the signing of the Nigerian Content Bill into law by President Goodluck Ebele Jonathan in 2010.

He said some of the investments were made by companies and other firms like Aveon, Cameron, Ladol, Nigerdock, FMC, Tenaris, EWT, while about 40,000 technical jobs were being created per annum.

He credited the President and the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke for providing the political support and conducive environment to implement Nigerian Content Act.

“Their support strengthened the Board to overcome local and international resistance from very powerful forces,” he added.

Nwapa also commended Total for its continued investment in Nigeria despite the challenging economic environment, particularly the fall in crude oil prices, adding that NCDMB was focusing more on its developmental roles owing to the need to build collaboration to achieve targets set by the Act.

In his welcome address, the Managing Director of Saipem Contracting Nigeria Limited (SCNL) Mr. Giussepe Surace said the company was in Nigeria for the long term, adding that the investment is a demonstration of its commitment to the nation.

He added that the company viewed Nigerian Content as an opportunity for development rather than a requirement for compliance.

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