GE Oil & Gas Commences Fabrication of Subsea Wellheads in Nigeria
After nearly four years of planning and investing more than $4.5 million in facilities, recruitment and training, GE Oil & Gas (NYSE: GE) has added the capability to fabricate subsea wellheads in Nigeria for its oil and gas customers. The announcement was made in Lagos by Uzo Nwagwu, chief operating officer for GE Oil & Gas in Nigeria.
This is a major milestone for GE Oil & Gas in the company’s efforts to substantially increase the local capabilities of its operations in Nigeria through ambitious technology programs and workforce development. With this achievement, GE’s customers operating in Nigeria no longer need to import these fabricated wellheads, thereby reducing costs and improving delivery time.
The new wellhead production capabilities at GE’s existing Onne facility in River State align with the Nigerian federal government’s local content law and desire for increased manufacturing capacity, skill acquisition and technology transfer. However, for GE, this milestone represents significantly more than complying with local content laws.
“GE Oil & Gas has a vision to ‘Fuel the Future’ by delivering cost-effective customer solutions on time wherever they are needed across the globe,” said GE’s Uzo Nwagwu. “By investing now in the development of our people and facilities, we are able to localize subsea wellhead assembly and partner with local suppliers to create a more sustainable business for Nigeria.”
Nwagwu referred to the establishment of the subsea wellhead fabrication capabilities in Onne as “a true win-win proposition for the indigenous industry and the Nigerian content agenda.”
GE’s Onne facility in River State has been operating since 2002. This purpose-built facility is the first and only portside facility of its caliber in Nigeria and employs more than 200 people. It has an exceptional safety record and is a cornerstone in GE’s commitment to the country’s oil and gas industry. With continually expanding capabilities, the site provides complete assembly, testing and life cycle service for subsea tree systems, subsea control modules, specialty connectors and pipe. It also includes a dedicated on-site training center and offers broad business development opportunities for local suppliers.
GE spends $11 million annually to service facilities in Onne and Port Harcourt and is investing $250 million in manufacturing and assembly facilities in Calabar, Cross River State by 2018. This $250 million investment is expected to create 2,300 jobs in the local economy. An additional $750 million will be allocated to sourcing local supplies and employee training in the surrounding communities as well as expanding GE’s service facility in Onne.
GE has been operating in Nigeria for more than 40 years, with businesses spanning a number of key sectors including aviation, power generation, oil and gas, healthcare and transportation. In the past three years, there has been a renewed focus on the country with an eye on new service facilities and employment of more local talent to expand the company’s capabilities. GE’s portfolio of technology solutions is well aligned with Nigeria’s infrastructure needs and is contributing to economic development and improved quality of life in the region.