Page 16 - AfrOil Week 07 2021

AfrOil NEWS IN BRIEF AfrOil

FINANCE the public sphere engaged in the execution and
monitoring of oil contracts. We must understand
AfDB, Mozambique LNG that we are there to serve. There is a chain which
turns with links, and each link in the chain plays
win Multilateral Deal of its own important role,” he said.
Additionally, in the meeting, the President
the Year Award from PFI called for the local content law to also be applied
to the mining sector, and that the National Oil
The Mozambique Liquefied Natural Gas (LNG) and Gas Institute (INPG) take on the function of The project started with a groundbreak-
Area 1 Project and the African Development issuing certifications. ing ceremony on April 27, 2018, and has now
Bank (AfDB.org) have jointly received the pres- Africa Oil & Power, February 15 2021 reached about 68% completion, with four major
tigious Global Multilateral Deal of the Year 2020 structures nearly completed, while foundation
award by the print and online publication Pro- UNIPORT to get $6mn gas work was starting on some buildings and parts
ject Finance International (PFI). of the project.
The project, the single largest foreign direct and LNG research centre Explaining the benefit of the park scheme to
investment in Africa to date with a value of over the nation’s economy, Wabote hinted that the
$24bn, will exploit Mozambique’s immense off- under Train 7 project facility would stimulate the manufacturing of
shore natural gas reserves, which can potentially oil and gas components in-country and reverse
transform global energy markets. The African As part of the Human Capital Development the current trend whereby the sector depended
Development Bank signed an agreement for Programme for the NLNG Train 7 Project, on importation for most of its finished products.
a $400mn senior loan to finance the project in over NGN3bn ($6m) has been set aside for the NCDMB, February 11 2021
July 2020. strengthening of the LNG and Gas Research
In signing the loan agreement, the African Centre at the University of Port Harcourt. The
Development Bank joined a global syndication Executive Secretary of the Nigerian Content POLICY
of commercial banks and export credit agen- Development and Monitoring Board (NCDMB)
cies that are providing financing. This financ- Simbi Kesiye Wabote made this known on AEC’s Regulatory Affairs
ing includes direct loans as well as export credit Wednesday when the acting Vice Chancellor
agency-covered loans with 16- and 18-year of the university, Prof Stephen Okodudu, paid Committee calls for less
terms. The project is implemented by an inter- him a courtesy visit at the Board headquarters in
national consortium of energy developers and Yenagoa, Bayelsa State. red tape and regulation
operators led by Total as the operator of the pro- Wabote outlined the objectives of the invest-
ject. It includes Mitsui, Oil India, Bharat Petro- ment in the university to include the establish- The African Energy Chamber’s Regulatory
leum, PTTEP, Oil and Natural Gas Corporation ment of an LNG & Gas Research center that will Affairs Committee held its first meeting of the
(ONGC) and Mozambique’s national oil and gas run sustainably and provide solutions to the Oil year to discuss regulatory matters that impede
company, Empresa Nacional de Hidrocarbone- and Gas industry, equipping selected engineer- the African energy sectors growth and to make
tos (ENH). The consortium is providing the ing laboratories and expansion of some facilities. proposals on progressive regulation fit for the
balance of financing through equity. Financial The intervention would also train some lecturers post COVID recovery. The purpose of a regu-
closing on the project is expected in 2021. to operate the facilities as well as establish digital latory committee is to identify and track global
The $24bn project, which was structured at laboratories linked to simulations at the center. regulatory trends and make propositions to Afri-
the Bank’s Africa Investment Forum, is Africa’s NCDMB, February 14 2021 can regulators on how these could be adopted
largest foreign direct investment and adapted to improve the operating environ-
African Development Bank, February 11 2021 Oil and Gas Park in Bayelsa ment in Africa’s energy sector.
Through its work, the Regulatory Committee
seen ready in Q4-2022 was able to assist the Chamber in crafting prop-
LOCAL CONTENT ositions that led to some changes in regulations
The Nigerian Oil and Gas Park being devel- on how to soften the impact of COVID-19 on
Senegal’s president calls oped by the Nigerian Content Development energy companies in a number of countries at
and Monitoring Board (NCDMB) at Emeyal 1, the start of the pandemic in 2020. The Cham-
for better communication, Bayelsa State, will be completed in Q4-2022, the ber’s Regulatory Committee took into account
Executive Secretary of NCDMB Simbi Kesiye how difficult it is for investors, but also for gov-
local content amendment Wabote has said. ernments to adapt to the new normal. The dis-
Wabote expressed delight with the quality cussion unpacked the importance of aligning
Macky Sall, President of the Republic of Sene- and speed of work by the wholly Nigerian con- regulation across the region.
gal, has directed that information exchange in tractors. He noted that their work compared Key outcomes of the meeting included pro-
the oil and gas sector be improved, in order for favorably with similar jobs across Nigeria and posals to promote: sensible and market-driven
all participants to be equally well informed. The provided evidence that the Board was always local content regulation; environmental regula-
President made this announcement in a meeting acting in accordance with its guidelines on tions that are in line with international standards
he chaired on February 9, 2021, in which talks patronage of local service companies. but not inhibitive to new exploration projects;
were held to assess the state of oil and gas project The park will create a low-cost manufactur- and constant exchanges between regulators in
execution in Senegal. ing hub that will produce equipment compo- Africa to create an awareness for alignment and
“We need increased vigilance from the State, nents and spare parts to be utilised in the nation’s also exchange of best practice.
especially with regard to the men and women in oil and gas industry. African Energy Chamber, February 15 2021

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