Customs, LADOL partner for successful completion of $3.8bn Egina project
The Nigerian Customs Service (NCS) and the Lagos Deep Offshore Logistics base (LADOL) has agreed to work together for the common goal of ensuring that the ongoing Floating, Production, Storage and Offloading (FPSO) oil platform also known as Egina project, is successfully completed for the nation’s economic wellbeing.
Grace Adeyomo, deputy comptroller-general in charge of free trade zones and industrial incentives, who led top management team of the NCS to LADOL for an official visit to the fabrication site of the Egina project last Wednesday, commended the promoters of LADOL for the great improvement recorded on the project site.
“The NCS was ready to collaborate with LADOL to ensure that the project is completed to not only fetch foreign exchange for the nation, but to also grow indigenous capacity and skills needed for economic growth,” she said.
The Egina project valued at $3.8 billion is said to be the first of its kind in the Sub-Saharan Africa and is being constructed at the LFZ by a Korean based-Samsung Heavy Industries (SHI), with LADOL as the local content partner for Total.
Adeyomo expressed delight at the speed at which the Egina project has moved compare to what was on ground in 2016 when the team last visited. “We have seen new projects like the muster point and a mini FPSO being developed on the sideline, which were not there during our last year’s visit”.
“By this investment, Nigeria will have something to be reckoned with on the world map when it comes to certain technicalities. A project like FPSO is uncommon and we are proud of you for being a Nigerian company,” she said.
Stating that the visit was to see if there are any physical challenges facing LADOL, she clarified that the use of LADOL speed boats for ferrying the company’s officials from located jetties to the base, is also part of the company’s developmental plans.
“I know that being located offshore, LADOL base can only be accessed by water and with technologies like the swipe card for all staff of LADOL, there is no way outsiders can gain entrance into the facility,” she added.
While conducting NCS officials round the Free Zone, Ladipupo Jadesimi, executive chairman of LADOL disclosed that the ongoing fabrication at the zone was part of its readiness to receive the first made-in-Nigeria ship.
“To have such a large vessel being fabricated in Nigeria, means that part of the $3.8 billion for the project, is being spent in-country, which also boost employment and also builds capacity as it gives room for more people to be trained”.
“We will soon start building a school of technology to train more Nigerians in line with government plans to create employment”. Between LADOL and SHI, we have spent over $300 million on the project. We expect that for the near future, Nigeria and LADOL would be a location where FPSO can be integrated”.
While soliciting for assistance of the Customs, he noted that the arrival of the FPSO will rake in billions of naira worth of revenue into government coffers in forms of Customs duties. “This wouldn’t have happened if FPSO was completed in Korea and dragged to Nigeria.
“Our plan is to have similar joint ventures with the very best companies in the world. SHI is probably the leading offshore contractors building things like LNG carriers, FPSO for crude production and even FPSO for LNG production,” he said.
“We still need continuing support from all government agencies and the ministries of petroleum and transportation” he added.
Musa Jibrin, Customs Area Controller of Apapa Ports, who said that the concept of FTZ is to encourage industralisation and local capacity building, added that Nigeria is just experiencing industrialisation and needs companies like LADOL to provide platform for the taking off of this venture.
He observed that with the developmental work on going in LADOL, he is optimistic that the future of the country is going to be bright as this will encourage investment across the country.
Uzoamaka Anagor-Ewuzie