Shell, firm sign N7.8bn pipeline contract

The Shell Petroleum Development Company of Nigeria Limited has awarded a contract for line pipes worth over N7.8bn to SCC Nigeria Limited.Shell said in a statement on Friday that the deal was part of the firms effort to encourage local production of the major pipeline making material.SPDC, which signed the contract with the Abuja-based company in August this year, said it had earlier worked with SCC to enhance their production processes and capability and added that the company was now able to manufacture line pipes of varying diameters.The General Manager, Nigerian Content Development, SPDC, Mr. Igo Weli, was quoted in the statement as saying, The contract means line pipes are now available within Nigeria, saving money and time, and developing the right expertise and creating jobs at the same time.Shell, however, said it was studying the findings of a feasibility study it introduced on the establishment of a second mill in Nigeria which would manufacture other types of line pipes.Weli added, 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 in Nigeria will really be an exciting development for the oil and gas industry and for the country as a whole.In a related development, the company also said it was equipping and training the personnel of the Nigerian Institute of Welding in mechanical and corrosion laboratory testing.According to it, N237m will be invested to procure, install and commission laboratory equipment for mechanical testing, metallographic testing, chemical analysis/instrumentation, corrosion testing and non-destruction testing.These activities will help the Institute to realise its potential as the foremost knowledge centre for welding engineering in Nigeria, it explained.
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