Shell Petroleum Development Company of Nigeria Ltd (SPDC) awarded a contract for line pipes worth more than $49 million to S.C.C. Nigeria Ltd., in one of the biggest efforts by an IOC to encourage in-country manufacture of the key pipeline-making material.
SPDC has worked with S.C.C. to enhance its production processes and capability and now the company is able to manufacture line pipe of varying diameters.
“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,” said Igo Weli, SPDC’s General Manager, Nigeria.
SPDC is considering a second mill in Nigeria which will manufacture other types of line pipes.
In a related development, Shell Nigeria Exploration and Production Company (SNEPCo) is equipping and training personnel of the Nigerian Institute of Welding in mechanical and corrosion laboratory testing.