Final Investment Decision (FID), worth over $100billion could be taken in Nigeria’s oil and gas sector, especially in the deep water going by renewed efforts by the country to pass the long-stagnated, Petroleum Industry Bill (PIB).
Indeed, while there have been delay on some upstream projects including, Bonga South West-Aparo, Zabazab-Eetan, Bosi, Uge, Nsiko deep water projects and others, a new joint venture (JV) between engineering firm, Doris Group and Nigeria’s IESL, targets to fast track pending projects with in-country capacity.
This is aimed at domestication and conservation of Nigeria’s foreign reserve and eventual reduction in the project cost.Recall that International Oil Companies (IOCs), have cited cost of projects, return on investment and uncertainties as challenges affecting take off of the projects.
Giving details into the new JV deal as well as the need to address in-country capacity in Nigeria’s oil and gas sector, Chairman/Chief Executive Officer of IESL, Dr. Diran Fawibe, said multinational and ingenious operators have expressed willingness for domestication to boost extant regulation that compels about 40 per cent local participation in projects.
But for this to happen, Fawibe noted that initiatives such as the Doris/IELS, would enable localisation, address skill gap, create jobs for Nigerians, and preserve foreign exchange that would have been spent on importing expatriates and outsourcing jobs abroad.
According to him, the new JV firm with equity of 55 per cent owned by Nigerian, and 45 per cent by Doris Group, would reposition oil servicing activities in the country.
Haven succeeded with a number of Floating Production Storage and Offloading (FPSO) projects in the country, Fawibe said Total, Seplat Petroleum Development Company, First E& P, Chevron Nigeria Limited, and ExxonMobil Nigeria are being engaged and willing to collaborate on the drive.
Chief Executive Officer, Doris Group, Christophe Debouvry, said the development would address offshore engineering in-country, adding that specialisation in FPSO and platforms would assist Nigeria in terms of subsea development, fixed and floating platforms, top sides and substructure, onshore facilities, fixed and floating wind turbines, and cables and transformer platforms.