Indigenous Firm Boosts Local Production for NLNG Train 7 Project

Samuel Mobolaji

Local Content development in the oil and gas sector recorded significant gains with the completion and load-out of quality pumps and valves for use in development of Train 7 of the Nigerian Liquified Natural Gas (NLNG) in Port Harcourt by an indigenous firm, BEAMCO.

The execution of the NLNG Train 7 project will at its peak create over 40,000 direct and indirect jobs.

The Train-7 is designed to move from Front End Engineering Design (FEED) to detailed design, construction, commission and delivery and this phase will attract almost $7bn with an addition of the upstream scope of $10billion which will boost the foreign direct investment profile of Nigeria.

The executive secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, who on Tuesday visited the facilities of BEAMCO Nigeria Limited in Lagos commended the oil and gas service firm for the giant strides it recorded in oil and gas equipment components manufacturing.

Specifically, he lauded the Nigeria Liquefied Natural Gas (NLNG) Limited, Saipem-Daewoo Joint Venture, and BEAMCO Limited for enhanced in-country value addition, as locally assembled pumps and valves are set for installation and pre-commissioning preparations on the multibillion-dollar NLNG Train-7 project on Bonny Island, Rivers State.

Speaking at the load-out ceremony at BEAMCO’s facility at Apapa, Lagos, the NCDMB boss noted with fulfilment that the feat of sourcing such vital components in-country was made possible by the Equipment Component Manufacturing Initiative (ECMI) launched by the NCDMB in 2013.

The initiative necessitates the issuance of Nigerian Content Equipment Certificate (NCEC) as a requirement for participation in equipment supply in the oil and gas industry.

The implementation ensured that NLNG, through its main contractor, Saipem-Daewoo, awarded a contract to BEAMCO for the supply of 17 API (American Petroleum Institute) Pumps and 19 Control Valves in line with NCDMB’s Approved Vendor List for NLNG Train-7 project.

According to Engr. Ogbe, “Nigeria is proud that BEAMCO will be delivering quality pumps and valves on schedule. This is a demonstration that the Nigerian business environment provides all the enablers to support manufacturing and assembly.”

He remarked further that the achievements of the company affirmed the position of the recent Presidential Directives on Local Content implementation, which mandates that oil and gas contractors should only be awarded to local companies with established and proven capabilities in-country.

He promised that, “NCDMB would continue to support BEAMCO to further expand its capabilities to include backward integration in pumps and valves components manufacturing in Nigeria,” and also assured purpose-driven companies in the oil and gas subsector that “together we will achieve more of similar milestones in the industry, as part of our collective commitment to achieve 70 per cent Nigerian Content by 2027.”

Among components and accessories sent forth at the event were four pumps (2 Reflux pumps and 2 Amine booster pumps) and five valves (2 Mark 100 valves, I Mark One valve and 2 flowtop valves).

The Executive Secretary was accompanied on the visit by some senior management of the NCDMB, including the director, Monitoring and Evaluation, Mr. Abdulmalik Halilu and Director Finance and Personnel Management, Mr. Ifeanyi Ukoha.

Some senior personnel from the Nigerian Content Divisions of the international oil and gas operating companies were also part of the visit.