African Mining October 2019 | Page 12

 AFRICAN BUZZ NIGERIA: GOING LOCAL It was also mentioned that Chevron has trained 161 Nigerians in welding, fabrication and craft for its Sonam Development Project at the Nigerdock facility on Lagos’s Snake Island. Among further initiatives, Chevron has sponsored four Nigerian engineers for subsea engineering training in France, offered further education scholarships to Nigerian seamen and helped 600 community graduates register for the Nigeria Oil and Gas Industry Content Joint Qualification System. Promoting ‘indigenisation’ in the Nigerian economy was the subject of a recent LEX Africa seminar, which asked how foreign investors were forging partnerships with local players, using local content and local manufacturing capacity and transferring valuable work skills. There was no shortage of success stories emanating from the gathering in London. The Escravos Gas-to-Liquids (EGTL) project in the Niger Delta has provided jobs for more than 15 000 local people during its construction phase. Most noteworthy has been the massive job of fabricating and integrating six modules of oil producer Total’s new floating, production and storage offshore vessel (FPSO), which will operate in the ultra-deep-water Egina oil and gas field 200km off the Port Harcourt coast. Regulatory incentives have included creating ‘pioneer’ status for companies in developing economic sectors – such as agriculture. This provides for tax holidays for certain periods of time to stimulate enterprise growth and expansion. There are also export duty incentives for locally produced goods, while the federal government has also placed a ban on access to foreign exchange for importation of certain items – such as rice and cement. The work, carried out at the Saipem and Hyundai Heavy Industries yard in Lagos, took six million man-hours – creating hundreds of jobs and bringing multi-dimensional development in its wake. Importantly, an estimated USD5-billion in costs was retained in Nigeria, instead of the expenditure going to foreign economies, as has previously been the case with such projects. Article compiled by Osayaba Giwa-Osagie, Senior Partner, Giwa- Osagie & Co in Nigeria.  Other shining local content examples in the oil and gas sector have been fabrication of the jacket for the Amenam drilling platform at Warri’s Globestar shipbuilding yard; Saipem yard’s manufacture of the Okpoho platform, and a well-jacket and helipad for ChevronTexaco’s Mere-X, which was built by Transcoastal Nigeria. Rival company Chevron plays an active role in the Oil Producers Trade Section of the Lagos Chamber of Commerce and Industry, working with monitoring agencies and legislators on local content development issues. SOUTH AFRICA: WASTE TURNS TO GOLD Five years ago, Thabo Valoyi and John Katjedi were working full-time jobs as sub-contractors at Anglo American Platinum’s Mogalakwena mine in the Limpopo Province All these large projects created jobs, built local capacity and stimulated the Nigerian economy. On the subject of skills; transfer and support for local communities by multinationals, oil giant Shell has increasingly used locally made goods and service companies and in 2017 concluded contracts worth USD760- million with Nigerian companies. Construction work in Abuja, the capital of Nigeria. of South Africa. Today, these entrepreneurs are supplying critical services to the mine – and providing jobs for more than 50 people in the process. Valoyi and Katjedi are the directors of Ahoy Enterprises, which provides general maintenance and hazardous waste management and disposal services. Ultimately, they aim to expand the business beyond the mining industry, and grow their staff complement even further as they provide a greater range of services. Ahoy Enterprises is the latest success story to emerge from Anglo American’s enterprise development programme, Zimele, which aims to build small businesses by including them in the local procurement networks of their mining operations. Thabo Valoyi and John Katjedi, directors of Ahoy Enterprises. 10  African Mining  October 2019 Ahoy Enterprises was founded in 2014 on the back of a small contract from Mogalakwena, with a staff complement of exactly four: the two co-founders, and two employees. Today they have 46 people on-site at Mokgalakwena alone, to maintain pollution control dams and manage hazardous waste and any spillages that occur during operations.  www. africanmining.co.za