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Low oil prices: Protectionist strategy underway for local firms



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By Adewale Sanyaolu  

WITH crude oil price below $40 per barrel, the Federal Government has concluded plans to fashion out initiatives aimed at keeping local firms in business.

The latest move to retain oil and gas jobs in-country was disclosed by Executive Secre­tary of Nigerian Content

Development and Moni­toring Board (NCDMB) Mr. Denzil Kentebe, at the load out and sail away of the Sonam non-associated gas wellhead platform (NWP) topside held in Lagos.

Kentebe explained that the new strategies will require all stakeholders of the industry to work together to see that new projects come out to sustain jobs and capacity in Nigerian facilities.

He added that the Federal Government was already tak­ing steps to bring all stake­holders to the table to work out solutions to the challenge.

Kentebe explained that the new strategies will require all stakeholders of the industry to work together to see that new projects come out to sustain jobs and capacity in Nigerian facilities.

The topside is for the Chevron/Nigerian National Petroleum Corporation’s Domestic Supply Obligation ( DSO), gas project.

While celebrating the feat recorded by Nigerdock in fabricating the topside which is the largest ever made in Nigeria, weighing about 2,700 tons, the Executive Secretary harped on the need to ensure that such achieve­ments are sustained and the gains recorded over the years are not eroded as a result of the crash in oil prices and cut back on projects.

“While we celebrate these feats, we are mindful of the current economic environ­ment, lull in business and threat to these capacities.”

The Executive Secretary hailed the commitment of Nigerdock to the develop­ment of Nigerian Content, recalling that the company had recorded many firsts on several projects, including modules fabricated on USAN and Ofon for Total, Abang and Itut topsides for ExxonMobil and Meren and Sonam top­sides for Chevron.

“The capacity has not only been sustained but increased over time. Thousands of Ni­gerians have continued to be employed and trained.

Nigerian suppliers have also been built up on the back of these projects and activities.

An example is Wellmann Nigeria Limited which has developed the capacity to load out heavy fabricated modules by investing in the acquisition and operation of Self Pro­pelled Modular Trailers (SP­MTs),’’ he said.

The Executive Secretary challenged other service pro­viders to take a cue from Nig­erdock and deliver quality and efficient service when given the opportunity, noting that every stakeholder has a part to play in making Nigerian Con­tent work.