NLNG eyes $1.5bn debut ship yard in Nigeria

June 22, 2015



Nigeria Liquefied Natural Gas Company (NLNG) is sponsoring the construction of the first major ship yard in Africa's biggest economy at the cost of $1.5-billion, in its attempt to turn the country into a hub for maritime operations on the continent.

Nigeria is the world's eighth biggest crude producer and Africa's top oil exporter but it does not have a drydock for maintaining and repairing large crude vessels, a major drawback for carriers sailing to the country, NLNG spokesperson Tony Okonedo told Reuters.

Only South Africa had such a facility on the continent, Okonedo said, meaning that ships travelled a long distance for repairs. Nigeria has two facilities that can only accommodate small vessels, he said.

Okonedo said Samsung Heavy Industries and Hyundai Heavy Industries have both agreed a $30-million commitment towards the construction of the facility, which would be located in Badagry, near Nigeria's commercial capital of Lagos.

"It could potentially be used to transport the 2.5-million barrel a day crude business in Nigeria," Okonedo said on the sidelines of a media briefing.

Okonedo said the NLNG organised a roadshow earlier this year to market the dry dock project to investors, which included multinational oil companies in Nigeria, with large exploration and upstream activities.

He said NLNG, which is owned by Nigeria's state-oil company NNPC, Royal Dutch Shell, French oil company Total and Italy's Eni was in discussions with a strategic investor for the project.

It appointed France's BNP Paribas and Guaranty Trust Bank to help raise around $1.6-billion two years ago to build six new LNG carrier ships, expanding its fleet to 30.

The construction of the dry dock, with a size that can accommodate 185 football fields, will take up to 48 months to complete and would commence once all the funding was in place, he said.

The company, which was set up over two decades ago, has a capacity to produce 22-million metric tonnes of liquefied gas a year. It obtains its gas supply from upstream oil companies and liquefies it for export.

It has long-term supply contracts with buyers in Italy, Spain, Turkey, Portugal and France and also sells on the spot market. Revenues for the first half shed 25 percent, in line with the fall in crude prices, NLNG said.

Okonedo said Samsung Heavy Industries and Hyundai Heavy Industries have both agreed a $30-million commitment towards the construction of the facility, which would be located in Badagry, near Nigeria's commercial capital of Lagos.

kettykings:



How wise of you to post a message that has very little bearing with the topic what has pipeline project to do with dry dock.

The real message is below.
A Federal High Court, sitting in Lagos has granted injunctions restraining President Goodluck Jonathan and other relevant government agencies from carrying out the order to relocate the $500 million oil project from LADOL Free Trade Zone(FTZ) in Lagos to Agga in Bayelsa State.

Also restrained in the judgment given by the Presiding Justice of the Court, J.T Tsoho on Tuesday May 12, 2015 are the National Assembly, the Federal Ministers of Transport and Justice/Attorney General of the Federation.

The court said they were being restrained from implementing the directive of President Jonathan that oil and gas-related cargoes must be discharged at Intels facilities in Onne, Warri and Calabar Ports.

According to Prof. Fidelis Oditah QC (Queens Counsel) and Senior Advocate of Nigeria (SAN) who filed the motion on behalf of LADOL, the injunctions ensure that all related agencies, including the Nigerian Ports Authority (NPA), must allow vessels and cargoes to proceed directly to any Port of choice, including oil and gas cargoes.

The Injunctions further prevent the passing of the amendments to the Oil and Gas Export Free Zones Act which sought, among other changes, to impose a foreign owned monopoly on the movement of oil and gas cargoes in Nigeria; Transfer control of 12 Free Zone’s in Nigeria currently under the NEPZA Act to the control of the Oil and Gas Free Zone, which is controlled by the same foreign owned monopoly company.

$3.8bn Egina Project Takes Off in Apapa

12 Sep 2014

The $3.8 billion Egina floating production storage and offloading (FPSO) situated at Lagos Deep Offshore Logistics (LADOL) base, Apapa has commenced operation.
This is sequel to a renewed pact between the technical facilitators, LADOL and Samsung Heavy Industries (SHI).

The two companies are expected to inject not less than $300 million into the creation of the new facility, which is expected to provide employment opportunities to many unemployed Nigerians.

The project earlier awarded to the two firms, is now taking off under a fresh Joint Venture (JV) partnership called, SHI-MCI Free Zone Enterprise.

Managing Directors of the JV, Dr Amy Jadesimi and a representative of Samsung, Mr. KS Lee, in a joint statement said construction of the facility is expected to last for 18 months adding that, once completed, it will be capable of fabricating 1,000 metric tonnes per month, as well as integrating all other FPSOs expected to be built in Nigeria for the next decades.

According to the partners, the project will generate an estimated 50,000 direct and indirect jobs in Nigeria over the next few years.

The project is in line with the provisions of Nigeria’s Local Content Act 2010, which mandates the domestication of up to 70 per cent of oil and gas activities, a move that is expected to put the country at par with Brazil, the world sixth largest economy.

Jadesimi and Lee described the project as “one of the largest FPSOs in the world, with a storage capacity of 2.3 million barrels, and a targeted production capacity of 200,000 barrels per day.”

According to them, billions of dollars that are currently spent overseas will be domesticated in Nigeria for the first time and billions of dollars in new revenues will be earned from market expansion. This increase in in-country capacity will position Nigeria to become West Africa’s hub, generate sustainable long term GDP growth required for Nigeria to become one of the world’s leading economies in line with vision 2020.

Stakeholders in the maritime industry said the siting of the project at LADOL Base, which has the strong backing of South Korea-based SHI, will boost local content in the country.

They added that the successful completion of the facility will significantly increase the sizes of the fabrication, engineering, procurement, training, design and raw materials such as steel and allied markets in Nigeria.
Furthermore, they said it would ensure that large vessels, including FPSOs, are integrated (partially constructed and assembled) in Nigeria.

They lauded the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, management of the Nigerian Nation petroleum Corporation (NNPC), the Nigerian Content Management Board (NCMB), and Total for ensuring the successful take-off of the project.

kettykings:
I still ask, how can people grow their economy by taking advantage of niger deltans by using court orders to restrain siting of projects there but when it has to do with nuclear plants from Russia the same people quickly appreciate the niger delta hosting it.

1after:


Stop your constant lies and hatred. A Yoruba man want to cite his project in his land and you are making noise. The project is funded by Samsung and Ladol, same way you evil people spread falsehood everywhere just to insult the tribe you hate. You accuse of stealing oil when Ondo state, a SW state produce oil too. Your lies will just make you kill yourself and nothing will happen.

StOla:


Let the billionaires from Anambra build one for Biafra.

That is the same dude that wants to "decongest" Lagos of Igbo mushroom banks and IT companies. Forgetting that as soldier ant dey go universal soldier they come.

When Lagos finally joins Ondo as an oil producing state, the dude is sure to pass-out.

1after:


They just love lying for thereself. The guy is one jobless dumbo in the village and always fall for the lies of his brothers that do brag every December. I have never seen Hausa brag about Dangote and other hausa billionaires in Lagos but its always this gala sellers making noise daily. Ladol, a Yoruba couple want to cite a project on there land and the hareful dog is making noise. Na wao

sonOfLucifer:
I see they've deleted your thread. Luckily, I saved the page as a pdf.

TheOtherview:


It is the Nigerian approach to crisis management - Keep people in the dark, bury head in the sand, and hope the 'problem' mysteriously disappears.

sonOfLucifer:

Label all who demand accountability haters and badbelle

a moderator banned TheOtherview for promoting a site that violates Nairaland's intellectual property. Ban expires at June 25, 2015 at 11:09:16 AM.

DankemzI:
I think they said Lagos is congested? What of Delta, Rivers, Edo, Akwa Ibom, Cross River States are they not coastal areas ? Don't they have contact with the Atlantic? At least it's not built in Kano or Kaduna then Atlantic ocean piped up there?? I wonder why of all places F.G chooses to site a Nuclear plant in Akwa Ibom Why not Lagos of all places This nonsense must stop!

kettykings:
Is this not the project that was scheduled to be executed in bayelsa, how people think they can grow their economy by grabbing projects meant for niger delta is what I still can't believe.

StOla:


Let the billionaires from Anambra build one for Biafra.

That is the same dude that wants to "decongest" Lagos of Igbo mushroom banks and IT companies. Forgetting that as soldier ant dey go universal soldier they come.

When Lagos finally joins Ondo as an oil producing state, the dude is sure to pass-out.

kettykings:
Is this not the project that was scheduled to be executed in bayelsa, how people think they can grow their economy by grabbing projects meant for niger delta is what I still can't believe.

1after:


Stop your constant lies and hatred. A Yoruba man want to cite his project in his land and you are making noise. The project is funded by Samsung and Ladol, same way you evil people spread falsehood everywhere just to insult the tribe you hate. You accuse of stealing oil when Ondo state, a SW state produce oil too. Your lies will just make you kill yourself and nothing will happen.

Super1Star:
Another multibillion dollars investment coming to SW.

I am expecting children of the land of dawning sun, the beasterners, to start ranting as usual.