The management of Dangote Petroleum Refinery has concluded plans to engage indigenous companies in the construction of the $12 billion plant. The engagement would be done through the Nigerian Oil and Gas Industry Joint Qualification System, NOGICJQS, the database of available capacities in the oil and gas industry managed by the Nigerian Content Development and Monitoring Board, NCDMB. The Chief Operating Officer, Dangote Refinery Project, Mr. Giuseppe Surace, disclosed at the technical meeting with NCDMB officials in Lekki, Lagos, that the company was committed to the plan. Dangote He said that there were many advantages in patronising the local market, adding: “Nigerian companies will get the first right of refusal. We will procure anything that is available in Nigeria.” The COO confirmed that there were several Nigerian content opportunities in the company’s refinery and gas gathering projects but interested companies must submit competitive bids and have technical capabilities. Commenting, Executive Secretary NCDMB, Simbi Wabote, promised that the board will assist the company in the utilization of the NOGICJQS database, to ensure that it maximizes the utilization of local personnel, goods and services in the construction and operations phase of the project. He said: “The Nigerian Content Act applies to every player in the Nigerian oil and gas industry and not just international companies. If Nigerian companies and investors procure everything from abroad then the essence of the act will be defeated.” Wabote maintained that slight cost differentials between Nigerian and foreign vendors should not be an excuse to export jobs, stressing that the opportunity cost of creating employment for Nigerians, developing local capacity, retaining spend in the economy and engendering a safe operating environment for companies justifies any marginal cost of execution charged by Nigerian vendors. He explained that Nigerian companies were affected by high costs of funds and powering their operations with diesel generators, assuring however that investments and initiatives by the Federal Government was already improving the power situation in the country. On funding, the Executive Secretary informed that the Board had obtained all necessary approval to relaunch the Nigerian Content Intervention Fund (NCIFund). He said the pool available for lending to qualified oil and gas players had been increased from $100m to $200m to ensure that more deserving companies benefit at the same time. He reiterated that NCI Fund will be disbursed directly by the Bank of Industry (BOI) at eight percent interest rate and repaid within five years.
source: http://www.vanguardngr.com/2017/08/12bn-dangote-refinery-engage-domestic-firms-enhance-local-content/