7 August 2012

Nigeria: Local Content - Ladol Wins N2.5bn Rig Deal

Lagos Deep Offshore Logistics base (LADOL), has again secured another $15.6million (about N2.5 billion) contract for a rig maintenance, an indication that the local content drive in the nation's Oil and gas sector is achieving positive results.

The giant rig code-named Noble Percy Jones is expected to undergo a complete maintenance turn-around at the base for a period of ninety days, after which it would be certified fit for offshore operations for the next five years.

Operations Manager of Noble Drilling Nigeria Limited, Mr. Dave Arthur, who conducted members of the Nigerian Content Development and Monitoring Board (NCDMB) round the vessels at the base, recently, said the company had chosen to undertake the repair works at LADOL, because it was sufficiently satisfied with the facilities as well as other logistics provisions as specified by the Board.

"We are encouraged by the local content policy of Nigeria, coupled with the available facilities here in bringing our job to LADOL, rather than policy consideration". He added.

As part of the objectives of the Nigerian Local Content Development Act (NLCDA), government aims at empowering indigenous companies operating in oil & gas, and maritime service sectors to enable them secure jobs from international oil companies (IOCs).

According to the Noble Drilling Manager, after considering other options for the rig maintenance, the company decided to do the job at LADOL since it has found the environment conducive in view of the prevailing security challenges in some parts of the region.

It will be recalled that in 2011 alone, LADOL handled about three major repair jobs for Ben Avon, Transocean including one of the largest rig repair job ever executed in Nigeria, which is Noble-Percy Jones rig repair. As the Transocean -Baltic rig just left the base few days back, Noble Drilling -Noble Lloyd Noble rig is currently undergoing repairs at the base.

Also speaking with newsmen during the tour of the rig at LADOL base by a team of delegates from Nigerian Content Development and Monitoring Board (NCDMB), who were accompanied by officials of NAPIMS and Chevron, Dave Arthur disclosed that the rig repair which has created over 261 jobs for Nigerians, and will also generate the sum of $15.6 million in cost for the economy, added that the policy decision (Local Content Act) enabled Noble to use LADOL.

Listing other reasons why the job was given to LADOL, Arthur who disclosed satisfaction with the level of works at the ongoing repair of the 29-year old rig, stated that the company chooses to repair at LADOL due to the fact that the base is located in a safe environment devoid of community crisis, which is capable of making business to thrive.

He added that the rig will be due for delivery on 1st October, 2012, after 100-day duration.

Commending the local content drive at LADOL, Akintunde Adelana, Director, Monitoring and Evaluation, Nigerian Content Development and Monitoring Board (NCDMB), who described the team's visit to LADOL as an eye opener and a pointer to the level of growth of indigenous capacity in the nation's maritime and oil and gas sectors, affirmed that there are potentials yet to be tapped by local and foreign investors in the sector.

He encouraged management of LADOL to keep faith in their projects, noting that the NCDMB would not hesitate at any time to support the base to overcome its market challenges.

Earlier in her presentation titled: 'Making Nigeria the Hub for Rig Repair in West Africa', Amy Jadesimi, Managing Director of LADOL, noted that, repairing rigs in Nigeria, has helped the country to benefit from technological transfer through training of a pool of manpower, who took part in the repair process.

According to her, LADOL in partnership with Samsung Heavy Industries is working on expanding its fabrication capacity from 10,000 tons to 40,000 tons with the integration of Floating Production Storage and Offloading (FPSO) fabrication facility in Nigeria, in order to centralize mega oil and gas and maritime fabrication jobs for West Africa in Nigeria.

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