Local Content: Oil coy to invest N7.2 bn to acquire assets to boost operations

The Chief Executive Officer, NigerStar 7 company, Mr Yann Cottart, on Thursday, September 20 said the company would invests over $20 million (N7.2billion)  to acquired oil floating facility assets  that would boost local content development in Nigeria.

Cottart said this at the official inauguration ceremony of its newly acquired $ 10 million vessel investment named 'NigerStar 7 Adaba' in Lagos.

He said the proposed direct and indirect investments into the oil and gas services companies would further boost local content development in the country.

According to him, the 20 million dollars investment future plan to acquire oil floating facilities, vessel and oil servicing equipments would create more jobs opportunities for offshore and onshore workforce and oil servicing companies.

"We  invested about 10 million dollars on the newly NigerStar 7  Adaba vessel that we are re-launching today to boost capacity and promote local content initiative in Nigeria.

Today is a remarkable day for the company as we welcome our newly acquired vessel that would serve Nigeria’s offshore and onshore oil and gas industry.

We  are executing the largest and complex  Equipments , Procurement and Construction (EPC) deepwater projects and with this  new addition  vessel, we become the only Nigerian Tier 1 EPC contractor with 100 per cent owned and positioned in-country,’’ he said.

Cottart said that with the investment, NigerStar 7 is creating employment opportunities for marine personnel in offshore and onshore, adding that the company also provides an asset to Nigeria which can best serve clients interest.

He said that Niger Star 7 benefits from its alliance with Jagal and Nigerdock companies, which is one of the largest fabrication yards in West Africa, capable of executing fabrication activities for most shallow and deep water projects.

In his remarks, the Executive Secretary, Nigerian Content Development and Monitoring  Board (NCDMB) Mr Simbi Wabote  lauded Niger Star 7 for developing local content in Nigeria, while assuring the Board’s support .

Wabote said that the board remains committed in encouraging Nigerian firms in the oil and gas sector to play key roles in the critical industry.

He said that the Board is determined to provide support and serve as a catalyst for the realisation of developing local content in Nigeria’s oil and gas industry.

According to him, we have commenced the disbursement of the 200 million dollars Nigerian Content Intervention Fund, which is fully managed by the Bank of Industry. Three companies have accessed the fund while we had received about 100 applications.

"I must commend NigerStar 7 for this renewed commitment to local content practice and the noticeable re-positioning you have undertaken to project the value proposition you offer as an oil and gas service provider of repute.

I am aware of some of the crucial projects you have undertaken to secure the country’s production at very critical moments. You have acquired so much credentials and I believe there are still a lot more you,’’ he said.

The NCDMB boss, however, called for more collaboration with the oil and gas operators to boost local content development in Nigeria, adding that the Board has consciously adopted working synergy mantra approach.

He said the fund will be applied to four key areas of the oil and gas activities such as; Manufacturing (including asset acquisition related to manufacturing), Asset/Equipment Acquisition (such as rigs, marine vessels, etc), Project Financing for service providers, Loan Re-financing, and Contract Financing for Community Contractors.

"I am delighted to be here to honour your invitation to chair this occasion dedicated to the re-naming of one of your vessels.

I took particular note of a phrase in your invitation letter to the effect that the vessel we are renaming today is ‘permanently imported, 100% owned by NigerStar 7 and Nigerian flagged’. Such attributes are the ones that give us excitement in the Board as a further notch-up of the indigenous ownership of vessels operating in the Nigerian Oil and Gas industry.

I am happy that we are not here to retire this vessel. Neither is it that the vessel is being sold off or seized due to some tough business environment. Instead we have come from far and near to celebrate the renewal of implicit confidence in the marine sector of our oil and gas industry.

Just a few weeks ago, we were in Onne to commission MV Osanyamo, today we are here to re-christen MV Adaba, in a few weeks’ time, we are billed to commission another vessel in Port Harcourt.

These are welcome developments and let me use this platform to say that we deeply appreciate those heeding to our calls to invest in Nigeria, Wabote said.

Wabote said further that the Board has consciously adopted this mantra by working across boundaries to sync together applicable elements of various statutory mandates for the benefit of industry stakeholders.

We are in collaboration with NNPC-NAPIMS, NIMASA, NEPZA, OGFZA, NIS, FAAN, NIPC, EFCC, BOI, and several other agencies and institutions.

These collaborations are already yielding results such as the alignment with NIMASA on classification of vessels operating, or seeking to operate, in Nigerian waters as well as training of seafarers.

NNPC-NAPIMS is also preparing the 5-year projection of vessel requirements to guide stakeholders on focus areas and investment opportunities.

I am keen to see several of such collaborations amongst the Nigerian Oil and Gas service providers so that we can accomplish much more for our businesses, for the country, and more importantly, create employment opportunities for that jobless graduate next door,’’ he added.

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