Financial Energy Review
by Abisoye Shola……..
The Management of Saipem Contracting Nigeria may have revised it’s decision to give the fabrication project of the Nigerian Liquefied Natural Gas (NLNG) Train 7 project to LADOL Offshore Logistics yard at Snake Island in Lagos State.
This turn around decision is not unconnected to the dust raised by the Niger Delta youth over their concern that over 40,000 jobs expected to come from the Train 7 project will be handled by a Lagos based company instead of a Niger Delta based company.
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote had said that the execution of the NLNG Train 7 project will create over 40,000 direct and indirect jobs.
As a result Saipem Contracting Nigeria has now said it will utilize its facilities in Rivers State for the fabrication components of the Front End Engineering Design (FEED) of the Nigeria LNG Train 7 Project.
The facilities which are located in Rumuolumeni, Bonny, Abam and Onne in Port Harcourt, Bonny, Okrika and Eleme Local Government Areas of Rivers State, respectively
According to George Bush the Director of Tancredi Group, the firm that manages Saipem corporate communications that this is the response coming from Saipem International Headquarters in San Donato Milanese, Milan, Italy over the alleged move to shift the fabrication jobs to Ladol in Lagos
Bush further clarified that Saipem’s fabrication yard in Rumuolumeni, Port Harcourt will handle the prefabrication works while construction will take place in Bonny Island, location of the Train 7 Project.
He said that “Saipem developed in Port Harcourt one of the biggest and most sophisticated fabrication yards in West Africa. It has the capacity to fabricate over 27,000 tons of steel structures each year and a direct annual manhour.
Port Harcourt yard covers over 1,000,000 square metres and is situated by the New Calabar River in Rivers State, a few nautical miles away from Bonny.”
“The prefabrication works in the NLNG Train 7 project are planned to take place in the Saipem fabrication yard in Port Harcourt, while the construction works will take place in Bonny.
He further disclosed that the logistics aspect of the project will be handled from the Daewoo Engineering and Construction Nigeria Limited at Abam in Okrika and Onne in Eleme Local Government Areas, respectively.
“The Daewoo yards in Abam and Onne will serve as logistics support yards for the project.”
“Daewoo, one of Saipem’s partners in the SCD Consortium (formed by Saipem, Chiyoda and Daewoo) awarded the Engineering, Procurement and Construction (EPC) for NLNG Train 7 project, has invested over many years in the development of its logistics base and fabrication yards in both Abam and Onne, all in Rivers State.”
It is said that the Ijaw Youth Council (IYC), amongst several other stakeholder groups warned the Nigeria LNG against moving or contracting out the fabrication jobs to Lagos or to non-indigenous companies.
The major concerns of the revolting groups and stakeholders were the massive job opportunities and capacity building prospects for indigenous welders and other specialized services that would be lost to Lagos should such development be allowed to take place.
But Tancredi Group’s George Bush posited that Saipem Contracting Nigeria would rather deliver its contracted projects in a win-win arrangement where stakeholders’ interest are accommodated and local expertise scaled up and reinforced in a sustainable partnership that deliver dividends to both end
