Page 17 - AfrOil Week 28 2021

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As such, the Company will not risk $500,000 Workshop in Port Harcourt.
testing this well, nor will it commit to further The agreement highlights Siemens Energy’s
investment in the Lalla Mimouna Nord con- ongoing commitment to enhancing the devel-
cession post the end of the concession date in opment of the local economy through training,
July 2021 as a result of the limited likelihood of skills development, and investment. The agree-
it being commercially developed. Accordingly, ment affirms Siemens energy’s continued com-
the Company expects to recognise a $10.3mn pliance with the Nigerian Oil & Gas Industry
non-cash impairment charge in Q2-2021 ahead Content Development Act.
of relinquishment, of which $2.8mn relates to The agreement was signed at Siemens Ener-
LMS-2. gy’s Rotating Equipment Workshop in Port Har-
In South Disouq, the IY-2 step-out develop- court by Seun Suleiman, Managing Director of
ment well, the first of a two-well campaign, was Siemens Energy Nigeria, and Lawal Gbolahan,
spud in late June with the Company expecting Nigerian Content Development Fund (NCDF) Managing Director of GIL Automation, and wit-
to update the market on its result later in July. between years 2010 to 2017. The Executive nessed by Simbi Wabote, Executive Secretary of
The second well, the HA-1X exploration well Secretary of NCDMB, Simbi Kesiye Wabote, the Nigerian Content Development and Moni-
on the Hanut prospect, is expected to spud after revealed this recently at the Nigerian Oil and Gas toring Board (NCDMB).
the completion of IY-2 in early August. HA-1X, Conference held in Abuja. “Our goal at Siemens Energy is to Energise
which is targeting gross unrisked mean recover- Section 104 of the Nigerian Oil and Gas Society. This is more than just the products,
able volumes of 139 bcf (3.936 bcm) with a 33% Industry Content Development (NOGICD) services, and solutions we provide; it’s about
chance of success, is expected to take approxi- Act stipulates the deduction of 1% of the value benefiting and bringing value to the society in
mately one month to drill and the Company of contracts awarded in the upstream sector of which we operate. Since we commissioned this
expects to update the market on its result in the oil and gas industry and remittance into the facility in 2016, we have continued to invest in
mid-September. NCDF. The Fund is used for funding the devel- its capabilities and expand our service offering
In West Gharib, following the 10-year con- opment of Nigerian Content in the Nigerian oil to our clients in the oil and gas and non-oil and
cession extension granted earlier in 2021, prepa- and gas industry. gas sectors. We have also recruited and trained
rations continued for a campaign of three to four The Executive Secretary also announced that more local engineers to effectively operate the
development wells, the first of which is expected the disputed obligations were being closed out workshop and increase the amount of local con-
to spud in early Q3-2021. and the Third-Party Forensic Audit of remit- tent. I am extremely proud that this agreement
Capex: Capex guidance for Morocco for the tances for the years 2018, 2019 and 2020 would with GIL Automation will add further value to
12 months ended December 31, 2021, has been begin by the fourth quarter of 2021 to con- the local economy through skills development,
increased by $1.5mn as the wells planned for clude the backlog of remittances by oil and gas training, and jobs,” said Suleiman.
the second phase of the 2021 campaign in the companies. “Siemens Energy’s strong commitment to
second half of the year are deeper and requiring He further stated that the Board launched the maximising local content development has been
greater drilling time than those included in the NCDF Remittance Portal in 2020 hosted on the a key factor in our partnership that started since
original guidance. Group 2021 capex guidance is NOGIC JQS, to plug loopholes and make it easy 2008. Over the years, we have developed capaci-
now $26.5-28.0mn. for oil companies that genuinely want to remit ties and competencies in panel fabrication, elec-
H1-2021 expenditure by asset was as follows. the statutory deductions, hinting that more than tric motors, electrical & instrumentation and
South Disouq: $3.7mn of capex for the com- 80% of operators and service providers have now moving into turbines and compressors.
pressor project ($1.5mn), the IY-2 development migrated to the platform. We’re proud to partner with companies that are
well ($600,000), the completion of the SD-12X He also touched on the Board’s Nigerian dedicated to investing in the future of the Nige-
tie in ($400,000), planning for the HA-1X explo- Content 10-year Strategic Roadmap, which is rian people,” said Gbolahan.
ration well ($200,000), the workovers of SD-4X aimed at achieving 70% Nigerian content in the “Today is a milestone where NCDMB is
and SD-1X ($200,000) and other CPF projects. oil and gas industry by the year 2027. He stated: witnessing the partnership between Siemens
West Gharib: $1.2mn on well workovers and “We are on the fourth year of implementation of Energy and a local company, Gil Automation
development drilling preparations. the strategic initiatives, which have taken us to which will involve transfer of knowledge and
Morocco: $10.9mn on three development 35% Nigerian content.” technologies by Siemens Energy and support-
wells ($8.9mn, including $0.5mn of decommis- NCDMB, July 5 2021 ing Gil Automation to build capacity to take on
sioning provisions) and a well workover cam- more active roles in the industry. Looking at the
paign ($2.0mn). operators in the audience, I implore you all to
SDX Energy, July 12 2021 TECHNOLOGY work with Siemens Energy and Gil Automations
so more jobs can be created through this part-
GIL Automation, Siemens nership and we can continue to build and upskill
POLICY local capabilities,” said Wabote.
Since the workshop opened in 2016, it has
NCDMB recovers $100mn Energy expand local content been a key facility to enable Siemens Energy to
development in Nigeria
contribute towards Nigeria’s long-term develop-
NCDF remittance Siemens Energy has signed an agreement with gas sector. Ongoing investment in the facility has
mental goals and localisation agenda in the oil &
The Nigerian Content Development and Mon- GIL Automation to boost the development of expanded its capabilities and provided greater
itoring Board (NCDMB) has recovered about local content in Nigeria, in the form of training, training and skills development opportunities
$100mn of undisputed obligations from the skill developments and joint project execution, for Nigerians.
Third-Party Forensic Audit of remittances of the at the Siemens Energy Rotating Equipment Siemens Energy, July 1 2021

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