Apparently satisfied with its efforts at developing a zero value greenfield NPA site into a $500 million facility, the Federal Government grants approval to Lagos Deep Offshore Logistics service provider (LADOL), a fully indigenous company, which plans to spend $350 million (about N57 billion) on Egina vessel platform integration.
The project is a Joint Venture (JV) between Korea-based world acclaimed Samsung Heavy Industries (SHI) and LADOL, which seeks to undertake the integration of a Fabrication Production Storage and Off-take vessel (FPSO), otherwise known as FPSO platform.
Managing Director of LADOL, Dr. Amy Jadesimi, described the process of getting government’s nod to commence the project as “a long, costly and difficult road to success”. She added that her company’s competence in handling the first-of- its-kind project in Africa, is no longer in doubt as government has granted the JV all necessary approvals to commence work in earnest.
The various approvals include: Designation as Deep Offshore Logistics Base, part of Apapa Port, NPA Approval for SaNTA – Training Facility in LADOL, which was obtained on January 17, 2013, as well as NPA’s Preliminary Approval for FPSO Facility in LADOL, also gotten on December 14, 2011.
Other necessary approvals and hurdles surmounted, according to her, include; NEPZA Planning Approval for FPSO Facility, which came on November 28, 2011; NPA Planning Approval for FPSO Fabrication Yard on August 2, 2013; NPA Planning Approval for FPSO Quay for Integration on October 8, 2013, following which the detailed design was completed in August 2013.
Aside from the series of approvals, Jadesimi said her organisation had to sign 19 separate agreements with Samsung over three years period, with the active involvement of seven separate world class Nigerian and International Lawyers, Financial Advisors and Consultants. “Our total Investment in FPSO Facility at LADOL to-date is $102.5 million. This does not bother us as the only 100 per cent Nigerian Logistics Base Owner in Nigeria and the only one to develop a facility from a zero value Greenfield NPA site into a $500 million world class base,” she said.
Jadesimi led newsmen on a facility tour of the site for the fabrication yard at LADOL base in Lagos. She said that the choice of her organisation for the unique project was informed by its track record in servicing major oil and gas companies’ logistics requirements, one of which was the final integration of the famous Agbami oil field facility.
According to her, series of findings and vessel simulation carried out along the Apapa ports coastline revealed that apart from being the only fully indigenous company of its kind in the country, LADOL base is most ideal site in Nigeria for berthing a vessel the size of an FPSO.
She revealed that LADOL, which is an International Ships and Ports Security (ISPS) certified facility, has all relevant government agencies’ permanently present in the Free Zone. They include the Nigerian Export and Processing Zones Authority (NEPZA), Nigerian Customs Service, Nigerian Immigration Service and the Nigerian Ports Authority (NPA).
“LADOL is already servicing oil and gas majors, contractors and service companies. The largest FPSO in Nigeria – Agbami – was supported by and from LADOL”, she said.
Jadesimi further pointed out that following the success recorded in the first phase of the company’s development, “LADOL is now expanding its facilities and its proven business model of private indigenous Nigerian led development of facilities, into Bayelsa State as well as extending its facility in Lagos with a $500 million additional investment.
“LADOL’s joint venture with Samsung to build Nigeria’s first and only Africa’s only FPSO facility will make Nigeria, Africa’s maritime and oil and gas hub, creating 100,000 jobs” she said, adding that LADOL has been given all required approvals to proceed with construction “and based on the approvals the government has given, $62.5 million invested already – this is new private investment in developing infrastructure in Nigeria”.
She maintained that integration basically means to put the module on the hull of the FPSO. “You need heavy cranes, expertise of an international company like Samsung to carry out the integration. Integration has never been done in the whole of Africa onshore. Up until now, the most we have managed to do is do it offshore partial integration. FPSO itself is 400 meters long, 80 meters wide
She emphasised that the integration must be done in Nigeria, saying that is what can take the local content from 10 per cent to 70 per cent. “It worked in Norway, Russia, Brazil, Korea. Korea doesn’t have oil and gas yet they have heavy fabrication facility. Samsung facility in Korea has three huge dry docks. The whole of Nigeria we don’t have dry dock yet we are the largest oil and gas producers in the world. We know that building infrastructure works.”
Information from Daily Independent was used in this report.