Senate panel launches inquiry over local content in $16bn Egina project

THE Senate Committee on Local Content has directed Total Exploration and Production Nigeria Limited to provide details of Nigerian content in the floating, production, storage and offloading, FPSO, of the Egina project. The details, it was gathered would enable the Senate to ensure the project make expected impact on Nigeria’s economy. In a statement obtained by Vanguard, the Chairman of the committee, Senator Solomon Adeola, directed Total to furnish the panel with its level of implementation of the Nigerian Local Content Act, 2010 on the project. The statement disclosed that the Senate made the demand when the Managing Director and Chief Executive Officer, Total Upstream Nigeria Limited, Mr. Nicolas Terraz, appeared before the committee in respect to the project. The Committee chairman stated that more detailed information on its implementation of the Nigerian Local Content Act, 2010 would be required, “given the quantum increase in the project sum since it was awarded in March 2012.” “In the last four years alone, the project value that was initially awarded at the sum of $3,143,499,498 to Samsung Hyundai Heavy Industries in 2012 has been revised up to $6 billion, $13 billion and $16 billion without a commensurate increase in the local content portion of the project. “The committee will want to have information on this aspect of the project in the interest of the Nigerian people.” He also indicated that the Senate might summon contractors, including Saipem, Nestoil, Dorman Long, Nigerdock and Aveon Offshore to appear before it. Meanwhile, Teraz has re-iterated the company’s commitment at continuously maintaining a policy that thrives on flow of investment among other International Oil Companies (IOCs) in the country. Mr. Teraz said at the just concluded 7th Practical Nigerian Content Forum, on the backdrop of dwindling oil prices amidst the multi-billion Dollars investment by Total Upstream Nigeria Limited (TUPNI), in EGINA Oil-field Project, which development started in 2013, as the third deep-offshore development South of Port-Harcourt, Nigeria.