Energy

Senate queries Total over Nigerian content of Engina $16b project

The Senate Committee on Local Content has demanded to know the Nigerian content of the multi-billion dollar floating, production, storage and offloading (FPSO) of the Engina project, which is being constructed by the Total Upstream Nigeria Limited.

A statement by the Media Adviser to  the Chairman, Senate Committee on Local Content, Chief Kayode Odunaro, said the Managing Director and Chief Executive of Total Upstream Nigeria Limited, Mr. Nicolas Terraz, appeared before the Senate Committee on Local Content to make a presentation on the project at the weekend.

Odunaro said Chairman of the Committee Senator Solomon Adeola (Lagos West) hailed Total for the achievements it so far recorded on Nigerian content in the first ever project to enable an in-country integration of a Floating Production Storage and Offloading (FPSO) facility in Nigeria.

The statement, however, said Adeola told the firm’s managing director that his committee would require more detailed information on the project in relation to implementation of Nigeria Local Content Act 2010, given the quantum increase in the project sum since it was awarded in March 2012.

“In the last four years alone, the project value that was initially awarded at the sum of $3,143,499,498 to Samsung Hyundai Heavy Industries (HHI) in 2012 has been varied from $6 billion to $13 billion and $16 billion respectively without commensurate increase of the local content portion of the project.

“The committee will want to have information on this aspect of the project in the interest of Nigerian people,” Adeola stated.

The statement added that Adeola also said the committee might be inviting other contractors involved in the project, including SAIPEM, Nestoil, Dorman Long, Nigerdock and Aveon Offshore.

The chairman noted that for now, the committee would want a detailed overview from Total Upstream Nigerian Limited, being the major contractor in the ongoing project.

“The committee will also want to get information on why the Nigerian Engina Project is more expensive than any other projects elsewhere in the world in addition to its local component,” Adeola stated.

When properly executed, the project, said to comprise drilling and completion of 44 oil wells and other ancillary facilities in deep sea, is expected to create 50,000 employment opportunities for Nigerians.

It will also aid the acquisition of highly technical skills by Nigerians and create opportunities in future to domesticate the construction of such projects in the country.

Members of the committee present at the presentation include Senator Biodun Olujimi, the Minority Whip of the Senate, Senator Mararafa Kabir, Senator Tayo Alasoadura, Senator Aliyu Sabi Abdullahi, Senator Binta Mashi Garba and Senator Bassey Akpan.

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