The Nigerian Content achievement recorded on the Total Upstream Egina deepwater project exceeded 50 percent, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, said on Wednesday.
He stated this in Abuja at the ongoing public hearing organised by the Senate Ad Hoc Committee investigating the $16 billion Egina Project.
He said the board set out to achieve 60 percent Nigerian content on the project but realized 50 percent, which he described as commendable because the execution of Egina set new benchmarks and domiciled new capacities and facilities in-country, one of which is the FPSO integration facility at the SHI-MCI yard located at the LADOL Free Zone, Lagos.
A statement from the NCDMB said the executive secretary clarified that crude oil production which is the main stay of the Nigerian economy might be shut down if the NCDMB were to enforce full implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
He stressed that some targets set in the Act were not attainable at now because of limitations in capacity and technology.
He cited an example with Section 53 of the NOGICD Act which mandates that all fabrication and welding activities must be carried out in Nigeria, yet there are yet no dock yards in-country where the hull of big vessels such as the Egina FPSO can be fabricated from scratch.
On why the board granted waivers for the importation of certain equipment used on the Egina project, Wabote explained that some equipment used in the oil and gas industry were proprietary, like the Christmas Tree, while some raw materials were not available in Nigeria.