Chevron reiterates commitment to Nigerian content development

Chevron Nigeria Limited (CNL) has reiterated its commitment to Nigerian Content Development (NCD). Before the enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act in 2010, only a few International Oil Companies (IOCs) had deliberately put in place policies to build, enhance and sustain the capacity of indigenous companies and contractors to enable them to fully participate in Nigeria’s oil and gas industry.

Eight years after the Act was enacted, the situation has changed significantly as recently emphasized by Mr Simbi Kesiye Wabote, the Executive Secretary, the Nigerian Content Development Monitoring Board (NCDMB). According to him, “Before the NOGICD Act, only 3 per cent of the marine vessels used in the industry belonged to Nigerians, but today, Nigerians control and own 36 per cent of vessels. From a zero active dry-dock facilities for vessels, the country now has four active dry-docking facilities and over 35,000 jobs have been created as a result of the NOGICD Act.”

Chevron Nigeria Limited (CNL), with its affiliates in the country, is one of the IOCs that had a pre-NOGICD policy in place and has in the post-NOGICD era remained committed to Nigerian Content Development (NCD) by partnering with the NCDMB to significantly grow Nigerian Content in the oil and gas industry.

In its 2017 Corporate Responsibility Report, CNL states that the company’s investment in NC was approximately $2 billion while procurement of materials through Local Community Contractors (LCC) and cost of services provided by indigenous companies were $74 million and $284 million respectively. CNL’s four-prong approach to NCD includes: selection of qualified local contractors; facilitation of partnerships and alliances between indigenous companies and foreign firms; capacity building; and development of local competencies.

Chairman/Managing Director, CNL, Jeff Ewing, explains the company’s stance on NCD thus: “At Chevron Nigeria Limited, we demonstrate our commitment to the socio-economic development of Nigeria by building mutually-beneficial partnerships and supporting the policies of government on Nigerian Content Development.

• I regret not winning Lagos for PDP in 2003 ― Atiku

We have helped in building the capacities of several Nigerian businesses by allocating substantial scopes of our major capital projects to Nigerian companies. Chevron is also helping to grow the Nigerian economy by contributing to the development of communities in the areas of our operation. We do all this, not just because it is required by the law, but because it is the right thing to do.”

Chevron said it supported Marine Platforms Limited (MPL), to become a major player in the Subsea industry, an area previously dominated by international companies. MPL handled the Subsea Installation of flowlines, umbilicals and jumpers on Agbami Phase 3 project.

On fabrication, construction and installation, Chevron facilitated the delivery by FMC Technologies of the first assembled-in-Nigeria Subsea Horizontal Xmas Tree, and the fabrication in Nigeria of Agbami production manifolds for the Agbami Phase 3 Project by FMC Technologies/Aveon Offshore Nigeria Limited. Chevron also facilitated the safe, timely and successful installation of subsea equipment such as flexible flowlines, umbilicals and jumpers on the Agbami Phase-3 project by a Nigerian Contractor – Marine Platforms Limited.

CNL also facilitated the fabrication and load out of the Offshore Platform Topsides and Bridge Connection for the Sonam Non-Associated Gas Well Platform (NWP) by Nigerdock Plc; the fabrication and load-out of the Okan PRP Topsides; Bridge Fabrication of Okan PRP jacket by Globestar in partnership with Idmon Engineering and Construction Co. Limited; Installation of the 32km and 24” Sonam to Okan NWP pipeline by West African Ventures Limited; and the coating of the pipes used for the Sonam Development Project and Escravos Export System Project (EESP) by Pipe Coaters Nigeria Limited.

Ewing concluded by stressing that Chevron will continue to “empower Nigerian service providers and suppliers through: human and business capacity development; local patronage and work scope allocation; fostering of business partnerships and sponsorship of research and development programmes to enhance the capacity of indigenous companies to participate in the oil and gas industry.”