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Yet-To-Be Accessed Project Scope, Reason for Train 7 Snail-Speed Take-Off, Undefined Opportunities – BKLCCC

By Boma Waribor

Sep 8, 2020

The lingering delay in knowing what opportunities are available in the Train 7 project of the Nigeria Liquefied Natural Gas (NLNG) Limited has been blamed on the non-availability of the project scope.

Chairman of the Bonny Kingdom Local Content and Compliance Committee (BKLCCC), Opuada Willie-Pepple came out with this position today.

Chairman, BKLCCC, Opuada Willie-Pepple

He disclosed, in a statement, personally signed by him and exclusively made available to Kristina Reports, that all of the outstanding issues generating concerns would depend on the definitive scope for the Train 7 project. 

There have been clamour among stakeholders as to what is in it for job seekers, contractors, financial institutions, manufacturing firms, suppliers, and other service providers in the project.

Aside that, the issue of the fabrication component of the Train 7 project had generated a lot of hullabaloo regarding the location of that critical component of the project and what percentage of it would be available to local business people.

Recall that Kristina Reports had earlier informed about the concerns of some host community members who alleged that contracts for the project would be awarded to non-indigenous contractors as lead partners while the local contractors would be the residual partners.

Kristina Reports also reported the declaration of the Managing Director of Nigeria LNG, Tony Attah on August 15, 2020 that the fabrication component of the project would be done in Port Harcourt.

Managing Director, Nigeria LNG, Tony Attah

Willie-Pepple regretted that the yet-to-be-accessed project scope was responsible for the anxiety associated with the snail-speed take-off of the Train 7 project.

“We are yet to get the community content scope from either NLNG or SCD-JV. Negotiations are ongoing to properly define what constitutes the 30 percent business opportunities to be deployed from SCD-JV to Bonny Community as envisaged by the Petroleum Industry Roadmap.”

Aside Willie-Pepple, BKLCCC has the Woman Leader of Bonny Kingdom, Helen Jack-Wilson Pepple, who serves as Secretary to the committee, former Caretaker Committee Chairmen of Bonny LGA; Charles Jumbo and Cyril Hart, Chairman of Konibo ye Awanta (Tobin) House; Dagogo Tobin, Secretary of Bonny Environmental Consultants Committee (BECC); Amairigha Hart, a former Manager at the Nigerian National Petroleum Corporation (NNPC); Carol Adda-Allison, and Squadron Leader Olam Allwell-Brown (Rtd.).

Amanyanabo and Natural Ruler of Bonny Kingdom, His Majesty, King Edward William Dappa Pepple III, CON, Perekule XI (centre), and some Chiefs and members of BKLCCC.

Other members of the committee are Chairman of Finima Youth Congress (FYC); Charles Brown, a former Leader of the Bonny Youth Federation (BYF); Simeon Wilcox, a former Chairman of Buoye Omuso (Brown) House Youths; Gogo Brown, Boma Jumbo, Albert Ezekiel-Hart, Gracethy Wilcox, Damian Nwanerih, Torudoghubo Jamaica, and Daddy Dappa.

Willie-Pepple, who was a former Chairman of the Port Harcourt Branch of the Nigerian Bar Association (NBA), emphasized that there has not been any award of contracts as long as the NLNG Train 7 project was concerned.

“We wish to state unequivocally, that no contract that falls under the 30 percent Bonny quota has been awarded to non-Bonny contractors.”

“Again, for the avoidance of doubt, no contract has been awarded to any company through the instrumentality of the Bonny Kingdom Local Content and Compliance Committee.”

The veteran lawyer, who is a titled citizen of Bonny Kingdom, had some cheering news for indigenes of the area.

Executive Secretary, NCDMB, Simbi Wabote

According to him, in line with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, Nigerian Content Development and Monitoring Board (NCDMB) Community Content Guideline, and the Petroleum Industry Roadmap, indigenes of the area would benefit from training programmes inherent in the project scope for the Train 7 project. 

“May we further inform, that Training/Human Capital Development of indigenes of Bonny, to build capacity for the Train 7 project is expected to commence now and we shall reactivate the process of generating a database of available skills in Bonny and also those who are willing to be trained, and forward same to SCD-JV to be trained for the Train 7 project, in line with the NOGICD Act.”

The full statement is reproduced below:

“A PRESS STATEMENT ISSUED BY THE BONNY KINGDOM LOCAL CONTENT AND COMPLIANCE COMMITTEE (BKLCCC) MADE ON MONDAY, 24TH AUGUST, 2020.

The attention of the Bonny Kingdom Local Content and Compliance Committee has been drawn to misconceptions and misinformation making the rounds on the media, especially, the Social Media, concerning the business opportunities for Bonny Community Contractors.

It is imperative to state that the BKLCCC acknowledges and appreciates the keen interest and vigilance shown by indigenes of Bonny Kingdom, both at home and in diaspora, towards the effective implementation of the NOGICD Act, NCDMB Community Content Guideline, and the Petroleum Industry Roadmap in the execution of the NLNG Train 7 project.

The concerns and agitations which are geared at ensuring that Bonny Kingdom is not shortchanged or marginalized during and after the execution of the NLNG T7 Project, is quite remarkable, and a welcome development to guard against a repeat of the sad events and marginalization of the Kingdom as seen in the previous construction of the NLNG Trains.

The BKLCCC was strategically setup by His Majesty, King Edward Asimini William Dappa III, Perekule XI, Amanyanabo and Natural Ruler of Bonny Kingdom, to interface with all stakeholders, and parties relevant to the execution of the Train 7 project, with a mandate to prevent the recurrence of the non-inclusion of Bonny indigenes and indigenous companies in the major aspects of the Project and maximize opportunities for Bonny Kingdom and her people.

As you are aware, the absence of the Nigerian Oil and Gas Industry Content Development Act (NOGICD) and regulations, during the construction of the NLNG base projects, up to NLNG Train 6, made it almost impossible for Bonny Kingdom and her contractors to participate or take advantage of the business opportunities in the NLNG project, to build capacity in readiness of future projects.

However, for Train7, the NOGICD Act, the NCDMB Community Content Guideline and the Petroleum Industry Roadmap are enforceable instruments of law that have expressly stated business opportunities that should be deployed by the Company to the Host Community. And the BKLCCC shall activate these laws to maximize the business opportunities for Bonny Kingdom.

Furthermore, in response to the concerns raised from all quarters, it is very important to state, that we are not averse to meaningful input properly directed to the office of the Chairman or Secretary of the Committee. The Committee values constructive and well channeled contributions, given that we are all working for the good of Bonny Kingdom and the seamless execution of the NLNG Train 7 Project.

Regarding the claim that:

1.            Non-indigenous companies were being awarded the contracts that fall under the 30% community content scope.

We wish to state unequivocally, that no contract that falls under the 30 percent Bonny quota has been awarded to non-Bonny contractors. Negotiations are ongoing to properly define what constitutes the 30 percent business opportunities to be deployed from SCD-JV to Bonny Community as envisaged by the Petroleum Industry Roadmap. Again, for the avoidance of doubt, no contract has been awarded to any company through the instrumentality of the Bonny Kingdom Local Content and Compliance Committee.

2.            The claim that the Bonny Kingdom Local Content and Compliance Committee connived with NLNG and SCD-JV to include non-Bonny contractors to benefit from the 30 percent business opportunities in the Train 7 Project meant for Bonny is completely false. We wish to further clarify, that all the business opportunities exclusively meant for Bonny, will solely be for Bonny contractors. The document on Partnership that is being brandished in public was misinterpreted, and negatively so.

The Committee being fully aware that some of the Bonny contractors may not know how to enter a partnership agreement decided to propose one. And the numbers and percentages contained in the proposed Partnership Guide are meant to be recommendations and not final figures. It was developed by the Committee to advise community contractors on how to enter a Partnership in order to maximize opportunities and grow capacity through technology and skills transfer.

More so, we recognise that most Indigenous contractors may lack capacity to compete with other Nigerians in the technical aspects of the Train 7 project, hence the Proposed Partnership Guide. In other words, the document is to facilitate partnerships that will enable Community contractors to compete with other Nigerian companies. Therefore the arguments, misrepresentations and misinterpretation is not the true position.

However, before the project begins, we wish to have another physical workshop/Seminar where we can articulate these issues for purpose of clarity.

3.            The concerns raised on the issuance of Certificate of Project Execution and Execution of Purchase Orders, in the name of the non-indigenous contractor is immaterial, as we are yet to get the community content scope from either NLNG or SCD-JV.

4.            The insinuation that non-indigenous companies, as part of the contractual arrangements, will have the right to employ whosoever they wish regardless of the employment quota system in Bonny Kingdom, is also out of place. We wish to reiterate that at all levels of contract execution, be it in major contracts or sub or even sub-sub contracts, the Bonny Kingdom existing employment quota and sharing arrangement, as being implemented by the Bonny Integrated and Recruitment Centre, shall apply.

May we further inform, that Training/Human Capital development of indigenes of Bonny, to build capacity for the Train 7 project is expected to commence now and we shall reactivate the process of generating a database of available skills in Bonny and also those who are willing to be trained, and forward same to SCD-JV to be trained for the Train 7 project, in line with the NOGICD Act.

Finally, as a fallout of our meeting with the Nigerian Content Development and Monitoring Board (NCDMB), the Committee has requested for the overall scope of the Nigerian Content plan for the Train 7 project to enable us articulate the Community Content, its business opportunities, human capital development, and all cadre of employment due the Host Community – Bonny.

There are other concerns, such as Corporate Social Responsibility, Post Construction opportunities, and the Environmental and Social Impact of the project on the Island and her people that must be closed out before the project begins sometime next year.

Going forward, we hereby appeal to everyone with useful contribution, concerns and queries to always reach out first to the Bonny Kingdom Local Content and Compliance Committee, through our temporary office in Bonny, e-mail address and phone number for clarity, to avoid further misinformation, and disinformation of the unsuspecting public.

Signed.

Amaopusenibo Opuada Willie-Pepple (Esq.) Chairman, Bonny Kingdom Local Content and Compliance Committee.”

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