The Executive Secretary, Nigerian Content Development and Monitoring Board, Mr. Simbi Wabote, on Wednesday, said the board would ban the importation of wires and cables for oil and gas projects in the country.
Wabote said this during the assessment tour of three ultra-modern wires and cables manufacturing factories in Arepo and Sagamu areas of Ogun State owned by Coleman Technical Industries Limited, makers of Coleman wires and cables.
He said, “We are not going to allow the importation of any cable for the oil and gas industry again. The same way we said all pipes must be coated in-country; the same way we will ban the importation of cables and wires for the oil industry. That is the only way to keep local companies in business and their workers at work.”
He said the International Oil Companies and others would have to source for all wires and cables needed in all oil and gas projects in-country.
Wabote said, “We are going to follow through with the policy statement made here today. There will be no importation of wires and cables for any oil and gas projects in Nigeria. Even if you (local manufacturers) cannot meet the quality and standards that they want, we are going to ensure that they work with you (local manufacturers) to meet the standards.”
The Chief Executive Officer, Coleman Technical Industries Limited, Mr. George Onafowokan, had earlier urged the NCDMB boss to ensure increased patronage of local wires and cables manufacturers by the IOCs.
According to Onafowokan, the CTIL’s 200,000 square metre factories have an installed production capacity to process 48,000 metric tonnes of copper and 24,000 metric tonnes of aluminium per annum, which puts the company in control of over 80 per cent of installed wires and cables production capacity in Nigeria and 50 per cent in West Africa.
He said the CTIL’s Sagamu factory was inaugurated in December 2014 to produce medium/ high voltage XLPE cables, adding that it was the first of its kind in West Africa, making Nigeria the sixth African country with such production capacity.
Despite the huge investment, the CTIL boss decried the low preference from the IOCs and other exploration and production contractors operating in the country.
He lamented that 100 per cent of the low, medium and high voltage cables used in the Akpo FPSO, USAN FPSO, and Egina FPSO projects, among others, were manufactured outside Nigeria against the provisions of the local content laws.
“Also under the NLNG Marine LNG carrier vessels project, where six ships were supplied to the NLNG, the NKN claimed to have exported about $400,000 worth of cables, which is not even enough for one ship. Majority of cables were actually made in Korea,” Onafowokan said.
He noted that though a local cable company was involved in the development of umbilical system for the Egina FPSO operated by Total, “ a budget was set aside for this purpose. However, till date, that process has not been fulfilled and Nigerians again are short-changed.”
In the spirit of the local content law, therefore, the CTIL boss urged the NCDMB to ‘facilitate the patronage of locally manufactured cables by the IOCs and their project operators such as SNEPCO, Saipen, Ladol, Total, Chevron, Hyundai and Samsung.
He also urged the NCDMB boss to ensure that local cable manufacturers are not sidelined in the ongoing NAE Deep Offshore project in Zabazaba being operated by Saipen Contracting Limited and SNEPCo Bonga South-West/ Aparo projects being handled by Samsung Heavy Industries Company Limited.
“It is noteworthy that Nigeria in recent past lost a substantial forex in hundreds of millions of the US dollars to foreign competitors” he added.
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