The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Ernest Nwapa has stated that the current volatility in the prices of crude oil at the international market, which has seen investors selling their shares in international oil companies, would not slow down Nigerian Content in the oil and gas sector.
The falling prices of crude oil hit a four-year low on Friday with $33 billion in market capitalisation wiped off the sector in Europe.
Data collated by Reuters from Henderson Global Investors showed that the sell-off since Thursday amounted to around $67 billion in lost market value.
Data collated by Reuters from Henderson Global Investors showed that the sell-off since Thursday amounted to around $67 billion in lost market value.
The price volatility continued on Friday, after the Organisation of Petroleum Exporting Countries (OPEC) refused to cut output, despite what is seen as a supply glut.
Brent crude was sold at a low price of $71.12 a barrel for January deliveries after settling at a four-year closing low of $74.36 on Thursday, when Saudi Arabia blocked calls from poorer members of the OPEC to cut production to stem a slide in global prices..
The drop in prices on Friday was the biggest one-day drop since May 2011, raising concern that the execution of oil and gas projects may be impacted negatively.
Brent crude was sold at a low price of $71.12 a barrel for January deliveries after settling at a four-year closing low of $74.36 on Thursday, when Saudi Arabia blocked calls from poorer members of the OPEC to cut production to stem a slide in global prices..
The drop in prices on Friday was the biggest one-day drop since May 2011, raising concern that the execution of oil and gas projects may be impacted negatively.
But speaking during the load-out ceremony of Chevron’s Gas Gathering Compression Platform (GGCP) and Non-Associated Wellhead Platform (NWP) sub-contracted to Nigerdock by Hyundai Heavy Industries (HHI) of Korea, Nwapa said that Nigerian Content should not be a sacrificial lamb in the current price volatility.
“There are changing trends in the global oil and gas industry. The oil prices are down. Guess the first sacrificial lamb – the consultants will start advising us that we should slow down on Nigerian Content. But we will not slow down. Nigerian Content will stay when the prices come down; Nigerian Content will stay when the prices go up. We are not going to back down on the implementation of the Nigerian Content. So, the consultants that are sharpening their heads to tell us how this economic model will challenge Nigerian Content should not border because we won’t listen to them,” he said.
Speaking on the Chevron gas project, which was the first time such facility would be fabricated locally in Nigeria, Nwapa also spoke about he “fought” with the current Deputy Managing Director of Chevron Nigeria Limited, Mr. Ezekiel Supo Shadiya to ensure that the job was done in Nigeria.
“Supo and I fought six years ago; he said, Ernest, I am here to run my business; I am here to give the Nigerian government our gas obligation. If we don’t meet the obligation, the government will fine us. If you (Ernest) insist that we should do this thing in Nigeria, then Chevron will see it as the fault of government. And I said that Chevron must do it here in Nigeria. We fought and fought and we just made up today after five years. Now, if Supo is running any other project, he will not suggest Korea. He will suggest Nigeria. That is what transformation is all about. The most important transformation is transformation in the head and that is where our President is leading us, quietly, surely and steadily,” he explained.
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