LADOL’s $3.8bn Egina FPSO project gains attention of Norwegian oil, gas coys

The ongoing construction work at the Lagos Deep Offshore Logistics base (LADOL’s) $3.8 billion Egina Floating, Production, Storage and Offloading (FPSO) oil platform, has continued to gain attraction of intending investors from local and foreign countries, as multiple Norwegian oil and gas companies recently visited the project site in LADOL Free Trade Zone, for possible business development. The Egina FPSO project is being executed by both LADOL, an indigenous logistics service company as the local content partner, and Samsung Heavy Industries (SHI) as the technical partner at the tune of $3.8 billion.

An update from management of LADOL shows that the fabrication arm of the project is about 60 percent completed while the entire project is over 90 percent completed, in the expectation for the arrival of the top hull of the FPSO by the end of second quarter of 2017.  However, the only thing left in the building of the fabrication yard is dredging of the water channel, which is slated to commence in two weeks’ time.

These facts unfolded in Lagos on Thursday, when a delegation of the Nigerian/Norwegian Chamber of Commerce (NNCC) and nine members companies of Norwegian trade group known as INTSOK, who were received by Jide Jadesimi, the executive director of LADOL, visited the base.

Representing Amy Jadesimi, managing director of LADOL, Jide who told the delegates that the base was developed as a Greenfield swamp by indigenous players about a decade ago, also stated that over a $104 million dollars was invested even before the company got its first contract.

Jadesimi pointed to the fact that the base is unique in its mode of operations as it strives to save capital flight, minimise delivery time that usually inhibits such projects when handled abroad, as well as the drive to increase efficiency in the system.  He said the company has been able to effectively manage the success story of its operations considering its location, which guarantees industrial peace as against the worrisome security challenges that characterise the Niger-Delta region.

Assuring the visiting team of the readiness of the base to do business with the Norwegian companies, Jadesimi said the FTZ is well fortified with all necessary government agencies such as the Nigeria Customs Service (NCS), Immigration Services, the Nigerian Navy, Nigerian Ports Authority (NPA) officials and a host of others who oversee due diligence in its operations.

“We can assure you that the future here is bright for Foreign Direct Investments, even though we have a few challenges which borders on bureaucracy and red tape, but these are issues that government is vigorously addressing,” he said.

Responding, Gulbrand Wangen, head of the Norwegian team, who said the Chamber was representing over 200 Norwegian oil and gas companies that were desirous of partnering with Nigerian companies for business development, expressed delight at the operations in LADOL, and he said the companies under his group were focused on developing oil and gas business in five major countries, including Nigeria.

“To do this successfully, we are working with the Nigerian/Norwegian Chamber of Commerce which was established in May this year. We are here because we have heard about LADOL and we are impressed by what we have seen and we are confident that we could open a lot of companies here as what we have seen will enable us to properly advise those companies back home as to what is going on here,” he stated.

He, however, noted that government needs to encourage the quick passage of the Nigerian Petroleum Industry Bill (PIB) in order to encourage investors who will be adequately guided by the terms of engaging in such businesses in the country.

According to him, with companies such as LADOL, there was no doubt the capability of Nigeria to play the role of West African hub in oil and gas operations, if only government would demonstrate its readiness to make the industry more transparent with the enactment of the necessary legislature.

Also speaking, Chijioke Igwe, chairman of the NNCC said that the establishment of the Chamber earlier in the year was informed partly by the need to attract foreign investors into the Nigerian oil and gas industry, and to secure the nation’s hub status in the sub-region.

He believed that there is need to bring these two countries together in building the oil and gas industry. “Norway has built an impressive track record in the oil and gas sector and the two countries bear a lot of similarities. We have a population of about 170 million people, while Norway has five million people, which are the major difference in the two countries. However, there are a lot of opportunities for Nigerian and Norwegian companies to collaborate if the enabling environment is there.”

Continuing, he states, “We are determined to foster this enabling environment through dialogue and engagement with the relevant organs of the national Assembly on the need to pass the PIB. The opportunity that exist in having the Norwegian companies doing business in the oil and gas industry is huge and will be beneficial to both countries.”

INTSOK is a network-based organisation where the partners exchange experience and knowledge of market developments internationally. The organisation encourages active dialogue between oil companies, technology suppliers, service companies and governments.

Uzoamaka Anagor-Ewuzie