The bulk of fabrication and manufacturing activities for Train-7 project will be suspended until the COVID-19 pandemic is under control, the Nigerian LNG Limited has said.
The Managing Director, Nigeria LNG Limited, Mr Tony Attah, who disclosed this, said the engineering design office for the Train-7 project would open in Nigeria in August, according to a statement by the Nigerian Content Development and Monitoring Board.
The NCDMB and the NLNG were said to have held a kickoff meeting this week for the engineering, procurement and construction components of the project.
According to the statement, the virtual meeting provided an opportunity for NCDMB key officials to clarify some technical details relating to the Nigerian content components of the project.
Attah described the contract award and execution of Train-7 as a clear demonstration of the commitment of the NLNG and its shareholders to continued investment in the Nigerian oil and gas sector with the attendant creation of capacity, competence and value.
He was quoted as saying that the challenges of the pandemic had compelled the NLNG and the EPC contractors to agree on scope adjustments that would facilitate a controlled start to the execution phase of the project, with limited engineering activities for the first 12 months.
He said, “The parties have agreed mechanisms that will facilitate a ramp-up and pivot into the full scope of work as soon as clearly defined indices are achieved at which point the more traditional expectations of the project execution phase will come into play with full mobilisation of the contractor to site.
“The critical mass of construction and fabrication activities will take off when the pivot into the full project scope occurs.”
He described the Nigerian content as one of the key value drivers for Train-7, saying it would create jobs, deepen competence and capacity, and unlock opportunities in the industry.
Attah said it would hopefully open the door for further expansion activities with the possibility of further LNG trains and projects.
He said the NLNG would collaborate with the contractors and the NCDMB to deliver the agreed Nigerian content, within budget, on schedule.
The NLNG boss also described community content as a key part of the project and requested the support of NCDMB to close the issue of community vendors that would participate in the project.
The Executive Secretary, NCDMB, Mr Simbi Wabote, said, “The NLNG Train-7 project is record-breaking, and the journey has been marked with many firsts, particularly in methodology, stakeholder awareness and participation and speed of completion of the regulatory approvals by the NCDMB.”
He challenged the lead contractors – Saipem, Chiyoda and Daewoo – and the subcontractors to set Nigerian content records during the project implementation phase.
He said, “We must not just limit ourselves to the Nigerian content levels contained the Nigerian Content Plan and the Nigerian Content Compliance Certificate.”
“We must push the boundaries so that upon completion, we can brag about the values that the project would have added to the oil and gas industry as well as the country at large.”
He urged the contractors to adopt what he called “we can do it here” spirit with respect to job creation, trainings for new skills and in-country capacity utilisation.