Nigerian Content: ‘We Deployed Indigenous Capacity to Contain Nembe Well Leak’

ksmar February 12, 2022 Business, Headlines Leave a comment 574 Views

By Amos Odeh, Yenagoa

Kenyon International West Africa Limited says it deployed 100 per cent local manpower and expertise to contain the oil and gas leak from a wellhead blowout at Oil Mining Lease (OML) 29 operated by Aiteo Eastern Exploration in Nembe, Bayelsa.

The Santa Babra South Well 1, which blew out on November 5, 2021 discharged thousands of barrels of Bonny Light crude blend into the Santa Babra River for 32 days, out of which some 18,600 barrels of emulsified crude and water sediments were recovered.

Aiteo had approached Boots and Coots, a subsidiary of United States Halliburton to plug the well but the firm was unable to mobilise its expatriate workforce due to the Covid-19 restrictions and hiccups which compelled the operator to look inwards.

Mr Victor Ekpenyong, chief executive of the indigenous oil services firm, said that the feat was attributable to the enactment and implementation of the Nigerian Content Act 2010.

Ekpenyong, a member of International Well Control Forum, appealed to oil firms operating in the company to give opportunities to Nigerian companies as they have developed competencies to match their foreign counterparts.

Ekpenyong noted that the Nigerian Content Development and Monitoring Board (NCDMB) has helped in building the capacity of Nigerian companies by facilitating collaboration between local players and Original Equipment Manufacturers (OEMs).

He explained that prior to the Nigerian Content Act 2021, the OEMs dominated the scene and enjoyed monopoly on oil and gas projects that Nigerians had the potential to execute but were marred by challenges.

Ekpenyong explained that the NCDMB has been assisting Nigerian firms overcome the challenges they faced in the industry and listed the $500 million Nigerian Content Intervention Fund as a boost to local capacity in oil and gas sector.

“Many companies are having difficulties and challenging experiences in the industry through a lot of challenges.

“Some companies may stay for a long time without any job. Also, the issue of marketing support in the sector is equally a cause for concern because it is very expensive amidst limited capital environment to engage in marketing communications.

“Equally, COVID 19 affected a lot of businesses, and some businesses are not able to meet up with orders. On the other hand, some companies have been showcasing their services at Nigerian oil and gas conferences without getting the desired patronage,” Ekpenyong said.

On the over 10 years of operating under the Nigerian Content Act 2010, Ekpenyong noted that the law enabled Nigerians in the oil and gas space to be in business as it reserves categories of jobs for them.

“Prior to the implementation, the operations we do now would not have been possible for an indigenous company. It would simply be the exclusive reserve of the OEMs.

“These days, OEMs partner with indigenous companies which enable these companies to develop their capacity.

“It also has made some Nigerians in the diaspora move to Nigeria knowing full well that their expertise would be well utilised. Without a doubt, the implementation of this act has been a vehicle for talent development in the country.

“We are very excited we have been given the privilege to establish businesses. I would say it is a win-win situation. There are some jobs we still partner with OEMs to deliver. It has been an inclusive venture where we work together,” he said.

Ekpenyong, an alumnus of Federal University Owerri, noted that there was available Nigerian technical expertise drilling services which encompasses piling, cold cutting and supply and installation of well head casing, adding that patronising Nigerian firms creates more jobs and checks capital flight.

He said that other areas of expertise by indigenous players like Keynon include pumping and sealant deployment technology; well remediation which includes repair of collapsed casing and wellhead jacket.

He noted the above are in addition well control service which entails well capping and idle well management which include surface and subsurface securement and antitheft installation.

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By Paul Williams   Freight forwarders and truckers at Onne Port in Rivers State have threatened to shut down operations over the poor condition of the port’s access roads and the manner in which the e-call-up system recently introduced by the Nigerian Ports Authority (NPA) is being implemented.  Six associations operating at the port, along with the Onne Youths Congress, the umbrella body for youths in Onne Community, noted that despite the huge resources accruing from Onne Port, the access roads leading to the port had become a death trap.  The associations on Wednesday, August 12, 2026, issued a four-day ultimatum to the Federal Government and the Nigerian Ports Authority to suspend the e-call-up system until facilities such as loading bays are provided and dilapidated access roads are repaired.  Chairman of ANLCA, Onne Seaport Chapter, Chief Ifeanyi Isikaku, while reading a communique, expressed the associations’ deep concern and frustration over worsening operating conditions for members and the host community.  The unions said NPA rolled out the e-call-up system without first providing adequate holding bays, prompting “the unabated illegal parking of trucks on Onne roads that has choked traffic, damaged goods and exposed workers and residents to danger.”  They also described the port’s internal access roads as “deplorable” and a “death trap,” blaming the road condition for container-fall incidents, injuries and loss of life.  Isikaku said, “We can no longer tolerate unfulfilled NPA commitments and roads that endanger lives and destroy goods. If holding bays had been provided before the e-call-up rollout, this crisis would have been avoided.”  He pointed out that the situation is unfortunate for a port that has contributed up to N487 billion in Customs revenue alone to the federal coffers.  Isikaku said Customs revenue from Onne Port Command between January and July 2026 was approximately N439 billion, with an additional N48 billion from the Oil and Gas Free Zone — a combined N487 billion over seven months.  He called on the Federal Government, through the Minister of Marine and Blue Economy, to allocate a portion of that revenue to fix and maintain internal roads and port facilities.  “Onne contributes significantly to national revenue; a fraction of the N487 billion collected between January and July should be used to repair our roads and protect workers and the host community,” he said.  The unions, among other things, demanded an immediate end to illegal parking on Onne roads to restore free traffic flow, urgent maintenance and repair of all internal access roads to prevent container falls and safeguard lives, and a ban on members’ participation in arbitrary or bogus payments associated with the e-call-up system and port transport.  Chairman of the Maritime Union of Nigeria, Eastern Port, Uche Ogbu, whose union bears the brunt of the dilapidated roads, said, “Our members will not be compelled to make arbitrary payments for a system that lacks the infrastructure to work.”  He noted the unions’ resolve on the suspension of the e-call-up system from Monday, August 17, 2026, until adequate holding bays are constructed to accommodate current truck volumes; the suspension will remain in place until all listed challenges are addressed.  …

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