#1UNITY AND FAITH, PEACE AND PROGRA ENT DEVELOPMENT & M NIGERIAN NCDMB 7th EDITION OF THE NIGERIA INTERNATIONAL ENERGY SUMMIT (NIES) Sustainability and the Future of Content Development in Africa's Energy Sector Presented By Engr. Felix O. Ogbe EXECUTIVE SECRETARY, NCDMB March 6, 2024 (c) Copyright of NCDMB 28 February 2024 www.ncdmb.gov.ng#2AGENDA 1. Content Development - Definition 2. The case for Content Development 3. Nigerian Content Achievements 4. Sustainability and African Content Development 5. Conclusions NCARD#3Definitions -Nigerian Content Section 106 of the NOGICD Act defines Nigerian content as: "the quantum of composite value added to or created in Nigeria through the utilization of Nigerian resources and services in the petroleum industry resulting in the development of indigenous capability without compromising quality, health, safety, and environmental standards". The schedule to the NOGICD Act, 2010 defines the targets for activities, materials and processes. March 6, 2024 (c) Copyright of NCDMB www.ncdmb.gov.ng (1) Services Finance (7) (2) 虑 (6) People Equipment (3) Facilities NCARD (4) Technology (5) Materials 3#4Case for Local Content... • Population 218.5 million (World Bank, 2022) GDP (Current US$) $477.39 billion (World Bank, 2022) Proven Oil Reserve 37 Billion bbl (OPEC, 2021) 11th Largest in the world 2nd Largest in Africa Proven Gas Reserve 209.5 TCF (NMDPRA, 2022) • 9th Largest in the world Largest in Africa Population 1,483,098,351 (UN Estimate) GDP (Current US$) $3.1 Trillion Proven Oil Reserve 125.3 Billion bbl (OPEC, 2021) (OPEC) Proven Gas Reserve 620 TCF (OPEC)#5Local Content Achievements... Nigerian Content Achieved: 54% NC in 2023 Fabrication Yard Capacity Achieved: 250,000 MT SAIPEM, AVEON, NIGERDOCK, EWT NESTOIL, SHI-MCI YARD, MG VOWGAS YARD FPSO Integration Yard: SHI- MCI, Lagos Pipemills Pipecoating Yards 2 6 Industrial Parks - 2 Ready to go, HCD- Trained over Marine NCIF Vessels 15,000 in >'$450mln 60% 6 More planned Vocational and Professional Skills Funding for Nigerian Local Vendors Iviarch 6, 2024 (c) Copyright of NCDMB www.ncdmb.gov.ng NCARD Owned Vessels Between 2017 & 2023, out of about U$7bn worth of marine vessel services tracked by NCDMB, 60% were executed using Nigerian owned assets 5#6EGINA FPSO FPSO Integration Yard: SHI-MCI, Lagos The First and only FPSO Integration yard in Africa! We LADOL#7NCDMB NOGAPS Emeyal 1 Site 7 71 ABB NCORD#8NOGAPS Odukpani Block of 12 Flats 24-room Hostel Training Center Admin Building EDPT wwwwww 101 ווו ווד#9Govt Technical College (GTC) Port Harcourt INTERVENTIONS: CONSTRUCTION AND EQUIPPING OF: ■ MECHANICAL WORKSHOP 24 CLASSROOMS BLOCK 200 BEDS STUDENTS HOSTEL 4 TECHNICAL WORKSHOP BLOCKS ■ ICT CENTRE RENOVATION OF PRINCIPAL'S LODGE March 2024 UJLUL NCARD#10Expatriate Quota Horizon 1 1689 2059 1114 1084 975 922 538 384 575 2011 0 2012 0 2013 0 Horizon 2 2544 1546 1444 779 665 2014 0 1857 1632 Horizon 3 Noticeable upswing since 2021 (post-COVID) 1458 • Exchange programs Precise Succession Plans. Biometric Data capture Collaboration with NIS However, EQ 1484 application on the rebound in the last 5 sign of years 1156 328 181 0 1 2022 2023 0 increasing activities/ compliance especially in post covid. 1,156 positions were approved in 2023 and 328 positions were rejected. 1125 1054 1036 969 938 961 986 943 887 829 763 676 621 418 592 29 157 127 73 79 0 2017 2018 2019 Granted Rejected Withdrawal 2015 Applied 2016 295 273 2020 0 2021 10#11EQ Admin Achievements Exchange programs have aided in the promotion of Nationals to positions of high authority within and outside the Country Precise Succession Plans have ensured Nationals understudying expatriates are adequately trained. 1,376 positions have been Nigerianized so far. The Biometric Data capture ensures all expatriates currently engaged in the oil and gas industry are duly captured Increasing Collaboration with Nigeria Immigration Service (NIS) and the Ministry of Interior. (c) Copyright of NCDMB 2023 www.ncdmb.gov.ng#12Improved Processing Time IPPG NLNG Signed SLAs with NLNG, OPTS, and IPPG. Implemented our Service Level Agreements to the letter Record-breaking reduction in the duration of approvals Signed Internal Service Level Agreements (ISLA). Signed SLA with industry operators and NNPCL - The overall goal is to reduce oil and gas industry's tendering to contract award processes from 36 months to within six months NAPCE Reduced Oil and Gas industry contract cycle time - Target is 6 months March 6, 2024 (c) Copyright of NCDMB www.ncdmb.gov.ng 12 NCARD#13Ease of Doing Business We maintained our Top Ranking on the PEBEC Ease of Doing Business Index... 1 3 27 13 2019 1 1 2020 2022 June 2023 NCDMB SERVICOM Desk Fully Operational March 6, 2024 (c) Copyright of NCDMB www.ncdmb.gov.ng 13 CARD#14Modular Refineries IN-OPERATION 5,000bpd Refinery at Ibigwe, Imo State. Commissioned in Nov 2020 WS WALTERSMITH UNDER CONSTRUCTION: 2,000bpd Refinery at Brass Island. Target completion in 2025. Atlantic refineries and petrochemical limited UNDER CONSTRUCTION 2,500bpd Refinery at Egbokor, Edo State. Target completion in 2024. & DUPORTMIDSTREAM UNDER CARD CONSTRUCTION 12,000bpd Ref at Gbarain, Bayelsa State. Completion in 2026. Azikel PETROLEUM NCD gov.r 14#15Butane Energy Limited LPG storage/bottling plants and LPG Depots 10 northern states and Abuja. Partnerships in Gas Value Chain (1) nedoga NEDOGAS DEVELOPMENT COMPANY LIMITED 80MMscd gas Processing Facility and 300MMscfd KGG manifold at Kwale, Delta State. OPMENT 1.2 million/year Composite LPG Cylinder Manufacturing Plant in Rungas Bayelsa & Lagos States 24MW Power Plant at LADOL Facility in Lagos State (c) Copyright of NCDMB 2023 www.ncdmb.gov.ng NIGERIAN NCDMB MON ITORING BOARD Copyright @2023 NCDMB All rights reserved 5,000MT LPG Loading and Receiving Terminal at Koko Delta State Triansel brass fertilizer 10,000TPD Methanol Production Facility at Brass Island, Bayelsa. 15#16P100 Interventions BUSINESS PLAN PHASES ACCESS TO MARKETS CAPACITY BUILDING • On average, grew by 15% annually between 2019 and 2021. ⚫ Despite the lull in 2020, beneficiaries saw an increase in the number and value of projects they have executed. Increase in the number of staff, and greater increase in the number of certified staff between 2019 and 2021. • Increased in cumulative training hours provided to staff FINANCIAL LINKAGES RESEARCH & DEVELOPMENT 5 beneficiaries accessed funding 。 4 NCDMB Working Capital Schemes. • 2 Nigerian Content Intervention Fund with the BOI. R&D was the most impacted of all indicator and achieved a CAGR of 134%. Snapshot of the outcomes of the Impact Assessment conducted on N40 companies among the P100 Beneficiaries Copyright © 2023 NCDMB All rights reserved 16 NCARD#17Status of Nigerian Content Intervention Fund with the Bank of Industry Disbursements Made Nos US$ N Product Line Manufacturing 3 0 7.561bn Asset Acquisition 32 183.536m 14.115bn Contract Finance 10 24.729m 2.232bn Loan Refinance 25 115.998m 15.981bn Community 0 0 0 Contractor Total 70 $324.263m N39.889bn NCARD Investment Income from NCI Fund @ 30th September 2023 N2.634bn US$42.117m This translates to total income in Naira of N35.233 billion (@ N774/US$1)#18Drivers of African Content Development NCARD#19Industrial Sector Energy Consumption by Fuel Figure 13. Industrial sector energy consumption by fuel, OECD quadrillion British thermal units Industrial sector energy consumption by fuel, non-OECD quadrillion British thermal units eia) 300 history projections 250 200 150 100 50 300 history projections 250 200 150 100 50 renewables natural gas electricity liquid fuels coal 0 0 2010 2020 2030 2040 2050 2010 2020 2030 2040 2050 Source: U.S. Energy Information Administration, International Energy Outlook 2021 (IEO2021) Reference case NCARD#20African Content Sustainability Drivers Business Opportunities Funding For Oil and Gas Projects Competitive Costs Legal Framework R&D Standardisation Commitment To Utilise African Capacities Afcfta Policy Consistency African Based Supply Chain African Based Project Office NCARD#21Closing Significant achievement by the Nigerian Content Effort. Sister African Countries being coached and supported to develop their local content programme. The achievement made so far will go to waste if not sustained. Sustainability requires New projects, utilisation of established capacities through continuous flow of jobs, reengineering the supply chain to reduce project cost and achieve world class standard. Africa has enough resources to support investment in African content and payback investment with healthy margin. Invest in local content Development. NCARD#22Nigerian Content Tower Yenagoa, Bayelsa State Nigeria NCOMB CONFERENCE CENTRE (c) Copyright of NCDMB 2020 ARPOLS www.ncdmb.gov.ng Thank You @ Contact us [email protected] @officialncdmb X @officialncdmb fwww.facebook.com/officialncdmb You Tube officialncdmb 070000ncdmb