Countdown begins for NLNG Train 7 as NCDMB Clears Project for Take Off

The Train 7 project of the Nigeria Liquefied Natural gas (NLNG) is set to take off as the Nigerian Content Development and Monitoring Board (NCDMB) has approved the Nigerian Content Compliance Certificate (NCCC) and Approved Vendors Lists (AVLs) for the Project.

The approval gives NLNG the final clearance to award the project to Saipem, Chiyoda, Daewoo (SCD) Consortium and commence the execution, having previously signed the Letter Of Intent (LOI) in September 2019, after the consortium emerged the commercially preferred bidder, with technical capability to deliver on the project.

The approval was conveyed in a recent letter by the Executive Secretary of NCDMB, Simbi Wabote to the Managing Director of NLNG, Tony Attah, titled “Re: Re-NLNG Train 7 Project-Provision of Engineering Procurement and Construction For Train 7 (T7) Project – Submission of Revised NCCCs and AVLs.

The NCCC is a key Nigerian Content implementation document that spells out the detailed scopes on an oil and gas project, agreed Nigerian Content commitments and delivery strategy.

The AVLs on the other hand contains all the likely Nigerian vendors, foreign vendors and community vendors for each scope of work. The vendors will still go through another prequalification process before commercial quotations will be received from them.

The Executive Secretary further directed that “NLNG should note that any scope of work not provided in the approved NCCCs, AVLs and Nigerian Content Plan, but surfaces in the project execution shall be considered Nigerian Content scope of work to be executed by Nigerian resources.“

The Board reviewed the Train 7 documents and granted necessary approvals with dispatch, notwithstanding the constraints of the COVID-19 pandemic. The maximum review circle was 2-3 work days.

Since the COVID-19 outbreak and lockdown in Nigeria, NCDMB has also ensured that critical services and operations of the Board continued unabated.

In particular, the Board rolled out measures to ensure resilience and business continuity in the oil and gas industry. It offered business advisory to Project 100 companies and other oil and gas service companies in Nigeria on how to navigate through these precarious times and remain resilient.

NCDMB also rolled out palliatives for beneficiaries of loans under the Nigerian Content Intervention (NCI) Fund. The palliatives include a huge reduction of the interest rate (from 8 to 6 percent per annum), extension of moratorium and tenor extension. These palliatives take effect from April 1, 2020.

The Board also directed NLNG to give priority to Project 100 companies with proven capacities in the Train 7 project.

The Board also donated ambulances and medical equipment to some states in support of the fight against COVID19.