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OBAX Boosts Nigerian Content with 10,000Bpd Facility
OBAX Worldwide Limited, a Nigerian oil services giant recently completed
a world-class 10,000 barrels per day (bpd) Early Production Facility (EPF),
with 100 per cent, indigenous team, demonstrating that locally, Nigerian
engineers and technicians have the ability to compete with their foreign
counterparts in the execution of projects of such magnitude.
Ejiofor Alike reports
OBAX's EPF
Nigeria's oil and gas industry has recorded major milestones, with the
recent completion of 10,000 bpd Early Production Facility (EPF) by Obax
Worldwide Limited, a global leader in the delivery of engineering,
procurement, construction, installation and commissioning services in
the oil and gas industry.
The facility is located within the flow station of the Nigerian
Petroleum Development Company (NPDC), the upstream arm of the Nigerian
National Petroleum Corporation (NNPC), at Ologbo in Edo State .
The construction of EPFs, some of which serve to assist oil companies to
begin early production from acreages, while detailed development of the
assets is ongoing, is a recent landmark development in the global oil
industry.
Since crude oil price hit the peak in July 2008, local and foreign
operators have been exploring new ways of bringing their acreages to
production, very quickly, to ensure early cash flow with minimal capital
investment.
The EPF that was recently completed by OBAX also serves to remove water,
sand and other impurities from crude oil before it is sent to the export
terminals.
By removing impurities, OBAX's EPF has the capacity to process crude oil
to acceptable international export standards, in line with global best
practices.
The processed crude oil can be evacuated by Barges to the Custody
Transfer Point. THISDAY however gathered from oil industry circles that
globally, evacuation by Barge is a temporary measure that is usually put
in place to ensure early cash flow while a permanent pipeline
construction is being undertaken.
 Commitment
to Nigerian Content
The successful execution of the project by OBAX Worldwide Limited did
not come as a surprise to oil industry players, as the private limited
liability company is known to have built up a global reputation for
delivering world-class services to the oil and gas industry.
However, the uniqueness of the project is that it was executed right
inside Nigeria, with nearly 100 per cent local team, demonstrating that
locally, Nigerian engineers and technicians have the ability to compete
with their foreign counterparts in the execution of world-class
projects, if given the right support by their multinational employers.
Before the Nigerian Content Act was enacted, some multinationals used to
export certain scopes of their engineering works to foreign yards,
thereby denying Nigerians the opportunities to develop capacity and
competence.
It also engendered capital flight as only less than 10 percent of the
yearly expenditure in Nigeria's oil and gas industry was retained in the
Nigerian economy.
But with the pioneering role of OBAX in ensuring that majority of the
scopes of its engineering works are domiciled within the country, the
Nigerian economy will soon begin to retain a substantial chunk of the
yearly industry expenditure.
This is because with the enactment of the enabling regulation, the
relevant government agencies are empowered to invoke the provisions of
the new law against other multinationals that are not ready to
contribute meaningfully to the Nigerian economy.
Obax initiative was clearly, a demonstration of the company's support to
the Nigerian Content Act, which was signed by President Goodluck
Jonathan on April 22, 2010.
The execution of the project from the engineering design stage to
completion in Nigeria and by mostly Nigerians was in line with the
provisions of the Act, which seek to empower Nigerians to acquire all
the relevant skills to run the country's oil industry, in line with the
spirit and the provisions of the Petroleum Industry Bill (PIB),
currently before the National Assembly.
Section 28, sub section (1) of the Nigerian Content Act provides that
Nigerians shall be given first consideration for employment and training
for any project executed by any operator or project promoter in the
Nigerian oil and gas industry.
By utilising local labour, Obax's project also conforms to the
provisions of the Act, in the area of preventing the outflow of the
country's capital to the foreign countries.
The Nigerian Content Act seeks to retain at least $10 billion in the
Nigerian economy yearly, out of the current yearly oil and gas industry
expenditure of $20 billion.
The Act seeks to meet this target by providing that certain categories
of jobs should be domiciled in-country, a provision, which Obax adhered
to in the execution of the EPF project.
By equipping Nigerians to carry out the job, the US firm has also
contributed in local capacity development and job creation.
The Nigerian Content Act seeks to create over 30,000 direct employment
and training opportunities in the next four years, considering the scale
of oil industry activities to be domiciled in Nigeria .
With this latest feat, OBAX WORLDWIDE Limited is no doubt leading in the
current efforts by the Nigerian Content Development and Monitoring Board
(NCDMB) to ensure unprecedented levels of Nigerian content commitments
in engineering, fabrication, procurement, training, and subsurface work
scope, pursuant to the targets set out in the Schedule of the Act.
The company's background and experience gives its numerous clients the
control and resources, so critical to successful project delivery.
The staff of the company is comprised of highly skilled and competent
project management staff, certified value specialist registered
professional engineers and architect with years of experience in Oil &
gas construction industries.
OBAX has high skilled resources to develop projects from concept to
commissioning with able leadership.
It brings together an integrated range of multi-discipline personnel
from different backgrounds, including locals, Nigerian overseas-trained,
and a good number of competent expatriates, in line with the Federal
Government's policy on Expatriate Quota. The company's reputation is
built on its total commitment to provide its clients with high quality
services, providing safe, reliable and modern techniques with maximum
economic value to ensure that it meets clients expectation showing its
difference in not just meeting the expectation but delighting them.
The company's focus is primarily on performance, operational efficiency,
safety and careful evaluation of requisition, risk and utilisation of
resources to the best effect ensuring success and value for money.
The crucial element of performance lies in the ability to provide high
quality services using highly qualified personnel.
The company also operates in total commitment to the host community with
high social and environmental responsibility and this has endeared it to
its numerous host communities, across the country. |
