The Federal Government, yesterday, said it has initiated plans to achieve 100 per cent local fabrication of modular refineries in Nigeria and has entered into discussions with Original Equipment Manufacturers, OEM for that purpose.
This Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, had also said the Federal Government intended to set a deadline for the local fabrication of oil vessels and Floating, Production, Storage and Offloading vessels, FPSO, while the Bank of Industry said the newly launched $200 million intervention fund could be used for contract financing and loan refinancing for oil companies.
The BoI also stated that it would, through the fund, take over the loans of oil companies in commercial banks, slash interest rates on such loans and reduce the burden on the companies.
Speaking at the Memorandum of Understanding, MoU, signing ceremony on the implementation of the $200 million Nigerian Content Intervention Fund, NCIF, between BoI and the Nigerian Content Development Monitoring Board, NCDMB, Kachikwu said Nigeria would not continue to award contracts, but set deadlines on when to localize most of the vessels and projects in the country.
He said: “Specifically, areas dealing with vessel fabrication and offshore platforms, FPSO, we must set a benchmark for when we can exit. No country in the world has been able to achieve this by just sitting around and giving contracts. ‘
’We must be able to see that in 10 years time, all FPSO in Nigeria would be localized. We must begin to drive that.”