StatoilHydro in Nigeria is an industry co-sponsor of the project entitled Enhancing Fabrication Capabilities in the Nigerian Oil & Gas industry (EFCN). The aim of the project is to increase the competence and capabilities of small and medium-sized fabricators in Nigeria, enabling them to better compete for work in the oil and gas industry in Nigeria. The expected result is an increase in the level of Nigerian content in oil and gas development projects.
Based on an existing Memorandum of Understanding (MoU) between the governments of Nigeria and Norway in 2000, a study was commissioned to assess the enabling environment for private sector development in the Nigerian upstream petroleum industry and to recommend ways of increasing and improving the capabilities of Nigerian supply and service companies.
The result of the study was a report called "Enhancement of Local Content in the Upstream Oil and Gas industry in Nigeria", which has subsequently been used for work related to development of Local Content legislation in Nigera. [SWH1] The report identified the fabrication industry as having the highest potential for increasing Nigerian content, taking into account the potential for increasing employment and locally manufactured equipment.
Drawing on this finding, the EFCN project was established in 2004 to enhance the competence and capabilities of Nigerian fabricator companies. The project is managed by the International Finance Corporation (IFC) of the World Bank Group and is executed by DNV. StatoilHydro is a member of the project steering committee.
The project is funded on a 50/50 basis by Nigeria and Norway. On the Nigerian side, the main contributors are the Nigerian National Petroleum Company (NNPC) and the Petroleum Training Development Fund (PTDF). The Norwegian contribution is split between the Norwegian Agency for Development Cooperation (NORAD) and industry partners which, in addition to StatoilHydro, include Aker Solutions and FMC Technologies.
The first phase of the EFCN project was completed in 2004. It comprised general mapping of capacity and competence in the Nigerian fabrication industry.
The execution phase of the project started in early 2008 and is expected to run for two years. In this phase, seven small and medium-sized Nigerian fabricators have been mapped in relation to international quality management standards to identify potential gaps. The project then aims to work with these companies over the next two years to help close these gaps through training and capacity building.
In 2008, four training courses were held, and representatives from the identified companies took part in experience transfer with Norwegian fabricators and other industries during a study trip to Norway. Additional capacity building activities and courses are planned for 2009.
A fabrication training centre is also under establishment, to be located at the Industrial Skills Training Centre in Lagos. The centre is currently being refurbished to include classrooms and workshops, including new welding equipment.
