SENATE QUERIES TOTAL ON NIGERIAN CONTENT OF EGINA $16BILLION PROJECT

The senate Committee on Local Content wants to know the Nigerian Content of the multibillion dollar Floating ,Production, Storage and Offloading (FPSO) of the first in Africa Egina Project under construction by the Total Upstream Nigeria Limited. 

When properly executed the project, comprising of drilling and completion of 44 oil wells and other ancillary facilities in Deep sea, is expected to create  50,000 employment opportunities for Nigerians, aid the acquisition of highly technical skills by Nigerians and create opportunities in future to domesticate the construction of such projects in Nigeria.

Speaking over the weekend when the managing director and chief executive of Total Upstream Nigeria Limited, Mr. Nicolas Terraz appeared before the Senate Committee on Local Content to make a presentation on the project, chairman of the Committee, Senator Solomon Adeola (APC, Lagos West) commended Total for the achievements so far on Nigerian Content in the first ever project to enable an in-county integration of a Floating Production Storage and Offloading (FPSO) facility in Nigeria adding that the Committee will require more detailed information on the project in relation to implementation of Nigeria Local Content Act 2010 given the quantum increase in  the project sum since it was awarded in March 2012. 

“In the last four years alone the project value that was initially awarded at the sum of $3,143,499,498 to Samsung Hyundai Heavy Industries (HHI) in 2012 has been varied from $6billion to $13billion and $16billion respectively without commensurate increase of the local content portion of the project. The committee will want have information on this aspect of the project in the interest of Nigerian people“ Adeola stated.

The chairman of the committee stated that the committee may be inviting other contractors involved in the project including SAIPEM, Nestoil, Dorman Long, Nigerdock and Aveon Offshore adding that for now the committee will want a detailed overview from Total Upstream Nigerian Limited being the major contractor in the ongoing project.

“ The committee is will also want to get information on why the Nigerian Engina Project is more expensive than any other one elsewhere in the world in addition to its local component” Adeola stated.

Members of the committee present at the presentation that raised issues of contradiction and lack of details in Mr. Terraz presentation include Senator Biodun Olujimi, the Minority Whip of the Senate, Senator Mararafa Kabir, Senator Tayo Alasoadura, Senator Aliyu Sabi Abdullahi, Senator Binta Mashi Garba, Senator Bassey Akpan, Senator Andrew Uchendu and Senator Dino Melaye