ladol-460x250Lagos Deep Offshore Logistics Base (LADOL) has budgeted over $350 million (N56 billion) for the establishment of an integration facility in the country’s oil and gas sector.

Already, the company has completed arrangements to embark on the construction of the Floating Production, Storage and Offloading (FPSO) in the country for the $15 billion Egina deepwater field off Nigeria.

Samsung Heavy Industries won the contract to build the FPSO and has proposed to use LADOL facility for the fabrication of 10,000 metric tonnes of the vessel. The facility has been scheduled for completion in the first quarter of 2015.

FPSO unit is a floating vessel used by the offshore oil and gas industry for the processing of hydrocarbons and for storage of oil. An FPSO vessel is designed to receive hydrocarbons produced from nearby platforms or subsea template, process them, and store oil until it can be offloaded onto a tanker

The FPSO platform is also expected to blaze the trail as first of its kind Africa in greenfield project development in the region’s oil and gas industry.

The Managing Director of LADOL, Dr Amy Jadesimi, told journalists after the tour of the integration facility site at the weekend, that the company has secured all the necessary approvals from government agencies, including the Nigerian Ports Authority (NPA) to begin work at the site.

According to her, the company has already invested over $70 million in the project, which is expected to create more than 5,000 jobs for Nigerians.

She disclosed that no country in Africa for now, has the facility to integrate the project, adding that if Nigeria embarks on it now, “what it means is that all the jobs, all the foreign exchange, trainings for the FPSO, will now flow to Nigeria, rather than the trend continuing with the capital flight that goes with it”.

Jadesimi noted that up till now, such structures were still being built and floated abroad, adding that with the commencement of the project, only the shelf will now be transported to Nigeria where all the facilities will be fabricated and installed locally.

She pointed out that by so doing, more than half of the entire cost will now be expended in Nigeria with all the ancillary benefits of jobs creation, technology transfer and trainings.

Jadesimi disclosed that the company is also partnering Samsung Heavy Industries for the development of the FPSO and the construction of a technology institute  – Samsung Nigeria Technology Academy (SaNTA).

“SaNTA is being established in recognition of the fact that Nigerians will only benefit from the wide spread job creation which will result from Onshore FPSO integration, as well as other important local content milestones with extensive and diverse training provided by world class partners according to management of the companies in a press statement”, she added.

She reassured of the company’s commitment to local content development in the country.

Jadesimi said: “We have so far invested over $100 million in transforming the swampland of Apapa port axis in Lagos into a world class one stop shop deep offshore logistics base and free zone now known as LADOL Free Zone (LFZ).

“LADOL is the only facility of its kind in Nigeria being the first greenfield specifically designed and built deep offshore logistics base as a wholly indigenous Nigerian facility; the organization is a champion for local content and one of its greatest success stories is the provision of a hassle free onshore and offshore logistics support for oil and gas production and exploration. In 2012 alone, LADOL domesticated $60 million that would otherwise have been spent abroad”.

 

Information from The Guardian was used in this report.

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