Content Development in the oil and gas sector gained a boost, yesterday, with the completion of first ever Nigerian fabricated 2,700 Tons Central Processing Facility (CPF) Modules built by Daewoo Nigeria Limited (DNL).
The project which is the nucleus of the Engineering Procurement component of Shell Petroleum Development Company’s (SPDC) Otumara Associated Gas Solution (AGS) awarded in 2011, was completed and unveiled at the Warri Yard of DNL in Delta State.
A group photograph of top NNPC, SPDC, NAPIMS and Daewoo staff shortly after unveiling the built in Nigeria 2,700 tons Central Processing facilities Modules for Otumara Node for Domgas Project in Ekpan, Delta State, last week.
Managing Director of DNL, Mr. P.S. Lim, told guests at the unveiling ceremony that “as first of its kind in Nigeria, the Otumara CPF Modules completion has contributed significantly in pushing Nigeria towards becoming the undisputed hub of oil and gas development in Africa.
“In line with the Nigerian Content Policy, the project was fully realised in Nigeria with productive cooperation from key contributors involving major and sub contractors including NETCO, AMAZON, NIGERCHIN, DORMAN LONG, PI-MOFF partnering DNL to meet completion.”
Mr. Lim added that, “the joy for Daewoo is in being an agent for practically demonstrating the spirit of the Nigerian Content Act which translated into provision of several direct and indirect jobs, discouraging capital flight, and boosting local capacity in course of the project.”
He challenged other international oil companies to exert more confidence in local capacity by challenging Nigerian companies and experts, particularly DNL to handle similar major projects in line for execution in the industry.
SPDC General Manager, Nigeria Operated Offshore, Shallow Offshore Project, Toyin Olagunju, who represented the company’s Managing Director, Mutiu Sunmonu said: “With the project completion, part of the gas plant where nominal 20 million cubic feet of gas will be compressed and six megawatts of electricity generated daily has been realised.”
Dr. David Ige who represented the Group Managing Director of the Nigerian National Petroleum Corporation added: “This project will also secure 60,000 bpd of oil. It is a big boost towards ending gas flares in Nigeria. It demonstrates that day after day we are setting new standards and when we set our hearts to it, we can end gas flaring in Nigeria.”
Special Guest at the occasion, the Executive Director, Nigeria Content Development and Monitoring Board, NCDMB, Engr. Ernest Nwapa said: “It is a revalidation of the Nigerian Content Act and why President Goodluck Jonathan had to sign it.
“This is another milestone. The value for the Act in this milestone and others before it is not in terms of the tonnage nor dimension of project. The key value is the mindset change. That even Nigerians can do all things possible in the technical intensive oil and gas industry.”
Nwapa acknowledged that the extended challenge is that “some basic fittings in the locally fabricated modules still had to be outsourced abroad. The next stage is to see that even these components are produced in Nigeria with Nigerians predominantly involved.
The completed project is set to be transported to the Otumara Shell project site soon for installation and specially constructed pipe beam foundations