During the unveiling ceremony, which underscored an investment of roughly $100 million over a five-year period, the Executive Secretary of NCDMB, Mr. Omatsola Ogbe, noted that this substantial project, owned by a domestic oil service provider, epitomizes the progression of local expertise and capabilities within Nigeria's oil and gas industry.
He stated, “The inauguration of Bell Oil & Gas FZE’s cutting-edge facility for pipe threading, machining, valve manufacturing, assembly, and maintenance represents a major leap forward for our industry. I applaud Bell Oil & Gas for their vision and dedication to strengthening Nigeria’s energy landscape.
“They are not just building infrastructure; they are also fostering in-country value, which is essential for our nation's development. This facility will enhance our capabilities by providing crucial services that will be vital in addressing the increasing demand for oil and gas infrastructure in Nigeria.”
He further clarified that Nigerian Content should not be misconstrued as 'Nigerianisation' or the exclusion of foreign entities from the oil and gas sector. Instead, it is a framework that allows for the meaningful participation of multinationals, Original Equipment Manufacturers (OEMs), and offshore suppliers in a way that benefits all parties involved.
Mr. Ogbe highlighted the importance of piping and threading as fundamental elements in the oil and gas industry, noting that they are essential for the transportation of oil and gas and for maintaining the structural integrity of installations, thus playing a pivotal role in the overall value chain.
As Nigeria aims for energy self-sufficiency, the importance of high-quality piping and threading services is paramount. Ogbe highlighted that with significant initiatives like the Dangote Refinery, TotalEnergies Ubeta gas project, Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, and the Nigeria-Morocco Gas Pipeline, the demand for these services is on the rise. The executive secretary noted that Bell Oil & Gas is strategically positioning itself to fulfill this demand, thereby decreasing the nation's reliance on imported materials and services and ensuring that economic benefits remain within Nigeria.
He stressed the necessity of involving Nigerian youth in the industry, pointing out that the oil and gas sector offers extensive opportunities throughout the value chain, including production, engineering, logistics, and project management. In his opening remarks, Dr. Kayode Thomas, CEO of Bell Oil & Gas, mentioned that the project, which is being developed in three phases, is intended to provide pipe threading and Oil Composite Tubular Goods (OCTG) for both onshore and offshore drilling operations. He added that the facility will function as a workshop for valve manufacturing, assembly, repair, maintenance, and composite pipe fabrication. Thomas disclosed that the total cost of the project is projected to be around $100 million for full completion.
“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 conceptualize, 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 organization is to be the reference point for true local content development in the Nigerian oil and gas industry.”
He expressed disappointment that no local bank demonstrated interest in financing the project, a situation he described as a challenge that compelled the company to seek funding from international sources.
He emphasized that Nigeria's ambition for industrialization and national development would remain unattainable if local banks persist in their reluctance to support domestic companies aiming to generate value within the country.