Shell Nigeria awards pipeline contract to local firm

November 01, 2011 | Africa

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In one of the biggest efforts by an International Oil Company (IOC) to encourage in-country manufacturing of the key pipeline-making materials, the Shell Petroleum Development Company of Nigeria (SPDC) has awarded a contract for line pipes worth over N7.8billion to SCC Nigeria Ltd .

SPDC had earlier worked with SCC to enhance their production processes and capability, such that the company is now able to manufacture line pipes of varying diameters.

SPDC’s General Manager, Nigerian Content Development, Igo Weli, said in a statement made available to local newspaper THISDAY at the weekend that his company signed the contract with the Abuja-based company recently.

“The contract means line pipes are now available withinNigeria, saving money and time, and developing the right expertise and creating jobs at the same time,” Weli said.

He noted that SPDC was studying the findings of a feasibility study it commissioned on the establishment of a second mill inNigeria, which will manufacture other types of line pipes.

“We commissioned the study earlier this year and are currently working with the Nigerian Content Development Monitoring Board on how the mill will be set up. Two line pipe mills inNigeria will really be an exciting development for the oil and gas industry and for the country as a whole,” he added.