NCDMB Unites Oil Industry Stakeholders to Boost Local Line Pipe Manufacturing
The Nigerian Content Development and Monitoring Board (NCDMB) has successfully brought together key oil and gas industry players to accelerate the local production and utilization of line pipes. This initiative aims to deepen local content, conserve foreign exchange, and create jobs within Nigeria’s oil and gas sector.
At a one-day workshop held at the Nigerian Content Tower in Yenagoa, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, emphasized the critical role of line pipes in the industry, stating that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 envisions 100% in-country manufacturing of seamless and welded line pipes. The event saw participation from the Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), pipe manufacturers, coaters, and the NNPC Upstream Investment Management Services (NUIMS), among others.
Commitment to Local Manufacturing
Engr. Ogbe, represented by the Director of Monitoring and Evaluation, Alhaji Abdulmalik Halilu, highlighted the economic and employment benefits of local pipe manufacturing. He posed critical questions to participants, including whether Nigeria should continue focusing on local line pipe production and what policies would support this goal.
Dr. Ama Ikuru, Director of Capacity Building at NCDMB, stressed that the push for Made-in-Nigeria line pipes aligns with the Presidential Executive Order on Local Content and is essential to achieving the Board’s target of 70% Nigerian content within a decade. He also pointed to major African pipeline projects like the Trans-Saharan Gas Pipeline and the African Renaissance Pipeline as key opportunities for Nigerian manufacturers.
Challenges and Progress of Manufacturers
Industry players presented updates on their respective projects. Brentex Petroleum Services Limited’s Managing Director, Mr. Chidi Nzerem, revealed that despite investing $64 million in a line pipe mill in Calabar, securing long-term funding remains a challenge, with an additional $176 million required for completion. Meanwhile, Frigate Pipe and Tubulars Limited is on track to complete its seamless pipe mill plant within 24 months.
Yulong Steel Pipes Limited, which had suspended operations in Nigeria for five years, announced plans to re-enter the market, targeting major projects like the Trans-Saharan Gas Pipeline and Shell’s Bonga North project. Pipe coating firms, including Solewant Group and Monarch Alloy, also provided updates on their operations and expectations from industry operators.
Support from International Oil Companies
Major oil companies reaffirmed their commitment to local manufacturing. Shell’s Supply Chain Manager, Mrs. Chioma Okpoechi, disclosed that between 2019 and 2024, the company spent $43 million on line pipes, with $115 million projected for the next four years. She emphasized the need for quality and timely delivery. ExxonMobil and TotalEnergies also pledged support, urging manufacturers to enhance cost competitiveness and understand the sector’s specific needs.
Indigenous Operators Champion Local Content
Seplat Energy Plc and First Exploration & Production (First E&P) voiced strong support for Made-in-Nigeria line pipes. Seplat’s Nigerian Content Development Manager, Mr. Simeon Ogari, affirmed that the company is a product of local content and fully supports the initiative.
Call for Policy Support and Financial Incentives
Manufacturers called on NCDMB to facilitate access to credit facilities and curb illegal importation of coated line pipes. Dr. Ikuru encouraged whistleblowing as a means to report such violations. NCDMB’s Director of Project Certification and Authorisation, Engr. Abayomi Bamidele, suggested that industry players collaborate to draft a bill for the National Assembly to involve the Customs and Excise Department in regulatory enforcement.
The Road Ahead
The workshop concluded with a consensus that similar forums should be held regularly, potentially including financial institutions to address funding challenges. The collective commitment of industry stakeholders signals a new phase in Nigeria’s journey towards self-sufficiency in line pipe manufacturing, a move poised to strengthen the country’s local content drive and economic sustainability.
