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Nigerian Content

Nigeria LNG Limited (NLNG) considers Nigerian Content an important feature of all its activities. 

In the company, all approved Nigerian Content Plans are aimed at attaining maximum achievable Nigerian Content deliverables in related activities, the ultimate goal being to achieve the targets set in the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act) 2010. 

By embedding the requirements of the ​NOGICD Act 2010 in all its contracting and procurement processes, the company has enshrined Nigerian Content as a key deliverable.

Our performance on Nigerian Content is governed by a committee consisting of NLNG Directors and members of the Senior Management Team. 

NLNG and Nigerian Content Development and Monitoring Board (NCDMB)

In a collaborative initiative, and to strengthen its relationship with NCDMB, in May 2017, NLNG signed a business-to-business Service Level Agreement (SLA) with NCDMB. The SLA became necessary because of the peculiar nature of NLNG's operations which is time-sensitive. 

The SLA was a key strategy for shortening the contracting cycle, cutting the cost of projects and improving compliance with the Nigerian Content Act 2010. It is worthy of note that this was then the first of its kind in the Oil and Gas industry in Nigeria and it supports the Federal Government’s drive to enhance the ease of doing business in Nigeria.

Nigerian Content in Shipping

A key initiative in shipping was achieved with the contract awards by Bonny Gas Transport (BGT), a subsidiary of NLNG, to construct six new Dual Fuel Diesel Electric (DFDE) LNG carriers – four by Samsung Heavy Industries (SHI) and two by Hyundai Heavy Industries (HHI). The six vessels built in South Korea under the BGT Plus Project have been delivered, thereby enhancing the level of Nigerian ownership and shipping capacity in the fleet through the government's holding in NLNG.

For the contract, NLNG made additional investment to the contractors' commitment for:
  • Utilisation of suitable Nigerian goods and services in the construction of the vessels.
  • Training of over 700 Nigerians in ship building in both Nigeria and the contractors' shipyards in South Korea.
  • Utilization of qualified Nigerians in the contractors' shipyards as part of the workforce for the construction of the vessels.
  • Promotion of the establishment of a ship-repair yard in Nigeria for in-country capacity development for repair and maintenance of Very Large Crude Carriers (VLCC), LNG carriers, large and medium size carriers, drilling Rigs and support vessels by commissioning a feasibility study at various sites (Onne, Bonny, Olokola, Badagry, Ogogoro Island, Ladol, etc.) to that effect.
  • Setting up of the Maritime Centre of Excellence (MCOE) on Bonny Island to provide marine and technical shipping services.

Training and Skills Acquisition

Thirty-five Nigerian trainees participated in the construction of the  six (6) DFDE ships in South Korea as part of the implementation of the Nigerian Content deliverables on the BGT Plus Project. This number includes the twenty eight (28)  trainees who completed their initial training in South Korea and the seven(7)  that successfully concluded training on Ship Design at International Energy Services Limited (IESL) in Lagos.

Over  Four Hundred and twenty (420) Nigerians completed the basic welding training in the Bonny Vocational Centre training facilities of Hyundai Heavy Industries and Samsung Heavy Industries as part of the Nigerian Content deliverables of the BGT Plus project. The training facilities of HHI and SHI have been handed over to Bonny Vocational Centre (BVC), also as part of the Nigerian Content deliverables of the project. This enhances the capacity of BVC to train more Nigerians on basic and advanced welding using state of the art equipment.

Six (6) Nigerians participated in the ship construction at HHI’s Ulsan shipyard as ship managers (two Production Managers, two QA/QC Managers and two HSE Managers). About One hundred and twenty (120) Nigerian trainees completed the ship construction training by Samsung Heavy Industries in South Korea.

Training of Nigerians in the acquisition of DFDE experience commenced in 2014 and includes cross-posting to companies currently managing this class of vessels, shipboard experience on board DFDE vessels, and deployment to shipyards.

The Ship Management Knowledge Transfer Project (SMKTP) initiated in 2008 with Shell International Trading and Shipping Company Limited (STASCo) was successfully completed in 2014.

Milestones include the birth of NLNG Ship Management Services (NLNGSS), a ship management department in NLNG, the phased take-over of the management of BGT vessels by NLNGSS, and the complete integration, in December 2014, of NLNGSS with NLNG Ship Manning Limited to form a new company, NLNG Ship Management Limited (NSML), a subsidiary of NLNG dedicated to providing ship manning and management services to NLNG and the international maritime industry.

Finance

NLNG vendors continue to benefit from the USD1.2 billion NLNG Local Vendors Financing Scheme (NLVFS) which offers funding at extremely competitive rates to Nigerian vendors. 

Services and Procurement

NLNG encourages full participation of Nigerian companies in its contracting and procurement processes while maintaining international standards on quality, cost, schedule, ethics, health, safety and environmental protection.

Examples of recent major awards made to Nigerian service providers:

  • Two Nigerian companies currently manage the Marine Operations Strategy Contract, a deliberate effort by NLNG towards encouraging in-country assembly of passenger boats, escort boats, RIB craft in Nigerian shipyards, and utilizing Nigerian materials and human resources in the assembly of the vessels.
  • As listed below, Nigerian goods and materials have been exported to South Korea for use in the construction of the six new DFDE LNG carriers:
  • Paints and Coatings Manufacturers Nigeria PLC and Berger Paints Nigeria Plc exported 480,000 litres of paints to both Samsung and Hyundai ship yards in South Korea
  • Over 180,000 metres of low voltage (LV) cables from Nexans Kabelmetal were shipped to Korea.
  • Over 9,000 pieces or 158 tons of Aluminium and Zinc sacrificial anodes from Metec West Africa were produced, shipped and installed in the new ships in South Korea.
  • Moveable furniture for the six new ships were made by two Nigerian companies, IO Furniture Limited and Vina International Limited, and shipped to South Korea.

Community Vendor Development

In a proactive bid to discover more Nigerian sources, Nigerian Content surveys and vendor forums are conducted at scheduled intervals to identify indigenous companies capable of providing the goods and services required by NLNG.

Below are some laudable achievements in this regard:
  • The Finima Legacy Projects for 50 and 20 houses were carried out by NLNG to fulfil promises made to the community. Through NLNG's initiative to empower local contractors via the Finima Legacy Project, 11 host community-based contractors have made capital investments in their companies thereby expanding their operating capacity. The contractors were involved in the civil and electrical infrastructures for the construction of 4-bedroom bungalows.
  • Strategic partnerships have been made between the more established Nigerian vendors and the community vendors. A good example is the case of SJ Abed and Vikal Nigeria Enterprise for the provision of catering services.
  • Fifty-four vendors from the community have been trained at Bonny Vocational Centre to improve their skills in business development and project management.
  • NLNG's deliberate strategies implemented to increase spend in the community have led to a significant increase in year-on-year spend.