A Review of the Nigerian Energy Industry

Fidelity finances vessel acquisition for Rangk

Godwin Oritse, Maimuna Mohammed & Victoria Edema

23 October 2012, Sweetcrude, Lagos – IN a bid to register its presence in maritime business in Nigeria, Fidelity has assisted Rangk Limited, a maritime service company in acquiring two service boats, ‘M.V. Radiant and M.V Rider’ for oil and gas operations.

Speaking at the commissioning of the boats, Executive Director Lagos West, Mr. Ikemefuna Mbagwu said that the bank’s involvement in the acquisition of the vessels is part of its responsibility to promote indigenous capacity.

Nbagwu said the acquisition of vessels for operators in the maritime and oil and gas industries is an important part of the bank’s business.

He noted that the banks are more confident to invest in the maritime sub-sector because operators are better organised now.

He disclosed that the bank is one of those designated to disburse the Cabotage Vessel Financing Fund, CVFF, adding that Fidelity has the capacity to execute the project on behalf of the Nigerian Maritime Administration and Safety Agency, NIMASA.

“This is part of our responsibility, to promote indigenous entrepreneurs and of course Rangk is a customer of ours and one of the foremost promoters of indigenous participation in the maritime sector.

“This is a very important aspect of business for us at the bank and for the nation and as you the know the government is making every move tp promote indigenous participation in the operations of the International Oil Companies, IOCs,” he said.

Although, Mbagwu declined to disclose the bank’s financial commitment to the acquisition of the vessels, sources close to the bank told disclosed that the vessels cost about $21 million which translate to N3.3 billion.

The vessels are built of aluminum hulls, and designed in such a way that they can ride rough seas and speed uop to 15 nautical miles and 25 nautical miles in calm whether.

They are essentially providers of personnel and stores for offshore operations.

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  • We commend Fidelity Bank’s effort at supporting the cabotage act as well as indigenous participation in the oil and gas business, and we urge other Nigerian banks to take a cue from this.