NCDMB warns NLNG, firms against flouting local content law in Train 7 project

The federal government through the Nigerian Content Development and Monitoring Board (NCDMB) has warned the promoters of the new Train 7 plant being implemented by NLNG Limited against any attempt to circumvent the provisions of the Nigerian Oil and Gas Industry Content Development (NOGCD) Act of 2010 in the $7 billion project.

The Shell-run company is shopping for $7 billion from the global financial markets to build Train 7, which will expand its operations and increase its production capacity from 22 million tonnes per annum (MTPA) to 30 MTPA. It had awarded the contracts for the Front End Engineering Design (FEED) of its proposed Train 7 to two consortia – B7 JV Consortium and SCD JV Consortium.

The B7 JV Consortium comprises American company KBR Incorporated, Technip of France and Japan Gas Corporation (JGC); while the SCDJV Consortium, consists of Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea. By the terms of the contracts, the consortia would participate in the Dual FEED Process and produce a Basic Design Engineering Package (BDEP) that would determine their EPC pricing, and eventually their bids to construct the train.

A completed FEED process would pave way for Engineering, Procurement, and Construction (EPC) pricing and bidding processes which are preconditions for Final Investment Decision (FID). Following concerns that some of the foreign promoters of the project will flout the NOGICD Act of 2010, which provides that certain scopes of the contracts shall be executed by Nigerian companies, the federal government has warned the company against flouting Nigerian laws.

Source: THIS DAY

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