N1.6bn vessel contract: NLNG to build dockyard in Nigeria

11 December 2014, Lagos – Nigeria Liquefied Natural Gas (LNG) Limited, Wednesday, announced plans to build a new dockyard in Nigeria, for the maintenance of its vessels as well as vessels of other operators in the oil and gas and maritime sectors.

The company, in a statement, noted that the dockyard, which will be built in Badagry, is coming on the heels of its $1.6 billion contract with shipbuilders, Samsung Heavy Industries and Hyundai Heavy Industries, for the building of six new vessels.

LNG_FINIMABabs Omotowa, Managing Director/Chief Executive Officer, NLNG at the investment forum held at the proposed site for the dockyard in Badagry, said the dry-dock, when completed, holds huge potential for the investment community.

“Our LNG vessels and very large crude carriers (VLCC) of other companies in the oil and gas, and marine industries, which are currently maintained overseas, resulting in millions of dollars being spent overseas, will soon be maintained in-country with tangible value-adds for the Nigerian economy,” he said.

Also speaking, Captain Temi Okesanjo, General Manager, Shipping Division, NLNG disclosed that the vessels will serve as a maintenance facility for vessels owned by players in the oil and gas industry.

He said, “I can confidently tell you that if we have a dockyard here, Nigeria LNG with its current 13 vessels in our fleet will be one of your patrons. When our company receives its six additional vessels from Samsung Heavy Industries and Hyundai Heavy Industries, those vessels will also be maintained here.

“I have no doubt the other players in Nigeria’s oil and gas industry will also be looking to service and maintain their vessels at this ship yard once it becomes operational.”

The company in the statement signed by Kudo Eresia-Eke, General Manager, External Relations Division, NLNG, further stated that the planned dockyard follows the conclusion of feasibility studies by Royal HaskoningDHV, an independent, international engineering and project management consultancy headquartered in the Netherlands.

To this end, Eresia-Eke disclosed that the NLNG has reached out to the investment community—representatives of banks and other financial institutions— with a view to making the initiative come to fruition.

He said, “Feasibility studies for citing the dry-dock were carried out on seven places—Badagry, Lekki Free Trade Zone (FTZ), Ladol Island, Ogogoro Island, Olokola FTZ, Onne, Bonny— before consultants identified Badagry as the best-in-class location for the dockyard.”

“NLNG, leveraging on the agreement with the ship manufacturers, secured a number of lucrative opportunities beneficial to the Nigerian economy including the training of about 600 young Nigerians in various aspects of ship-building, procurement of goods from Nigerian companies and the feasibility studies for building a dockyard.”

He explained that observers of Nigeria’s maritime sector have long lamented the absence of an operational dockyard to cater for very large crude carriers (VLCCs) and liquefied natural gas (LNG) carriers as existing dockyards can only handle smaller vessels.

“Lack of such a facility has meant that owners of large vessels in Nigeria and some add, the West African region, have had to pay large sums of money to docking facilities located mainly in Asia, Europe and the Americas that can accommodate such large vessel.

“The dry-dock is also planned to be operated and managed according to international standards, and when operational, will generate revenue and add jobs to the economy,” he said.


– Vanguard

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