Bell Oil and Gas has unveiled its 50,000 metric tonnes integrated Oil Country Tubular Goods pipe threading, valve assembly, and composite pipes manufacturing facility, located at the Lekki Free Trade Zone, Lagos.
The company said the facility aims to end the importation of OCTG pipes, valves, and other materials needed for oil drilling onshore and offshore.
Unveiling the facility which targets an estimated $100m investment over five years, the Executive Secretary of the Nigerian Content Development and Monitoring Board, Omatsola Ogbe, said the project owned by an indigenous oil service company was a testament to the growth of local competence and capacity in the Nigerian oil and gas industry.
Ogbe said the commissioning of the Bell Oil & Gas facility for pipe threading, machining, valve manufacturing, assembly, and maintenance marked a significant advancement in the petroleum industry.
“I commend Bell Oil & Gas for their foresight and commitment to enhancing Nigeria’s energy sector.
“They are not only creating infrastructure but are also driving the in-country value that is vital for our nation’s progress. This facility will bolster our capabilities, offering essential services that will be instrumental in meeting the growing demand for oil and gas infrastructure within Nigeria,” he said.
The local content board boss emphasised that Nigerian content was not ‘Nigerianisation’ or exclusion of foreign participation in the oil and gas industry but rather an implementation model which provides sufficient opportunities for the participation of multinationals, Original Equipment Manufacturers, and offshore vendors in a mutually beneficial manner.
He explained that piping and threading were critical components in the oil and gas industry, adding that from the transportation of oil and gas to ensuring the structural integrity of installations, these elements play a central role in the value chain.
As Nigeria strives to achieve energy self-sufficiency, he maintained that the need for quality piping and threading services cannot be overemphasised.
With major projects such as the Dangote Refinery, TotalEnergies Ubeta gas project, Ajaokuta l-Kaduna-Kano Gas Pipeline, and the Nigeria-Morocco Gas Pipeline, Ogbe opined that the demand for piping and threading services would rise.
The executive secretary added that Bell Oil & Gas has positioned itself well to meet the foregoing demand, thus reducing the country’s dependence on imported materials and services, and ensuring the retention of the economic benefits within Nigeria.
He commended the company for engaging Nigerian youths, stating the oil and gas industry provides enough opportunities for the younger ones.
Speaking with newsmen, the Chief Executive Officer of Bell Oil & Gas, Dr Kayode Thomas, stated the project which is being built in three phases said the facility would serve as a valve manufacturing, assembly, repair, maintenance workshop, and a composite pipe fabrication plant.
Thomas revealed that the entire project was estimated to cost about $100m to achieve full completion and will ramp up capacity from the current 50,000 metric tonnes to about 150,000 metric tonnes.
“We’re extremely proud and excited to be creating value at a strategically important time in the nation and in the industry, because this project has taken the best part of seven years to conceptualise, to design, to construct, and to get to the point where we are today, where we can proudly say we’re ready for business.
“It is wholly indigenous. It will be run wholly by Nigerians. We do have technical partners, but our aim from the very onset was not to be commission agents. It was about knowledge and technology transfer to local manpower. This is our own contribution to local content, and our vision as an organisation is to be the reference point for true local content development in the Nigerian oil and gas industry.”
However, he regretted that no local bank showed interest in supporting the project with funds.
He stated that Nigeria’s quest to achieve industrialisation and national development would remain a mirage if local banks continue refusing to support local companies that want to create in-country value.
Kayode commended the NCDMB for its support, appealing to the board to reduce the bottlenecks in accessing funds.
Speaking about composite pipes, he said, “The final phase is a composite pipe fabrication section for glass fibre-reinforced epoxy pipes and GRP and FRP pipes. These are pipes that are made from composites, and they are an alternative to steel pipes. They provide economic advantages over the project life cycle. They are lightweight, they don’t corrode, and they are easy to install.“
The Governor of Lagos State, Babajide Sanwo-Olu, who was represented at the event by the Commissioner for Commerce, Cooperatives, Trade & Investment, Folashade Ambrose-Medebem, congratulated Bell Oil & Gas for the feat achieved.
Sanwo-Olu said the facility is a testimony to the unwavering commitment of Bell Oil & Gas to build an industry powered by Nigerian talents and reduce reliance on imported equipment and services.
