A Review of the Nigerian Energy Industry

NPA restricts oil, gas cargo to dedicated terminals

14 May 2015, Lagos –  The Nigerian Ports Authority has directed that oil and gas related cargo should be handled at Onne, Warri and Calabar ports.

Oil-tanker-cargo-ship-360x240This is coming less than a week after the appointment of Alhaji Sanusi Bayero as the Managing Director of the NPA.

The Managing Director of the Lagos Deep Offshore Logistics, Ms. Amy Jadesinmi, said this on Wednesday while taking journalists on a tour of the facility in Lagos.

She said, “We received two letters from the NPA shortly after the appointment of Bayero as its MD. The first letter directed us to relocate our facility to Bayelsa State or any other Intel facility in the country. The second letter said that all oil and gas work would now be restricted to all Intel’s facilities in the country.

“We believe the NPA has been misled; this is a free zone and as such we cannot just stop work or relocate our facility. We would be going back to the NPA for clarification. People should be allowed to determine their port of choice as regards oil and gas cargo.”

The first letter dated April 27, 2015 read, “Please, be instructed that the President as of April 20, 2015, instructed that the FPSO project can be located at Agge, Bayelsa State, when the facilities to handle such operations are developed. In addition, the project can be conveniently located at any dedicated oil and gas terminal.”

The second letter also dated April 27, 2015 said that the President had approved that oil and gas related cargo must be handled only at dedicated terminals in Onne, Warri and Calabar ports.

It added that vessels coming to Nigeria with oil and gas related cargo excluding petroleum products should first go to the appropriate terminals to be cleared by the Nigeria Customs Service and other relevant authorities.

The letter added the vessels were required to pay the necessary duties and obtain approval before proceeding to locations of final discharge including vessels meant for LADOL.

Jadesinmi also expressed surprise about a recent report of the Federal Government’s plans to purchase a 10 per cent equity of Intel.

She added, “We don’t have any problem with Intel or the Federal Government’s plans. We just hope it would not impose a monopoly on the industry. Every private investor needs a level playing field.”

On the Egina oil and gas project being built for Total Nigeria Limited, Jadesinmi said the project was well ahead of schedule, having attained nearly 75 per cent completion.

She said fabrication was set to begin in the next two or three weeks, adding that the roofing of the assembly shop would be completed next month.

Piling for the quay wall, already in progress is expected to reach completion by August 2016, according to her.

On completion, the quay would have a draught of 13.5m.

“While the assembly yard has already been completed, the painting and blasting shop is still undergoing construction,” the statement added.

The oil and gas project valued at about $3.8bn and scheduled to last 18 months, began last year and is being undertaken by technical facilitators, Samsung Heavy Industries and LADOL.

Also known as Egina Floating Production Storage and Off take, sited at LADOL’s base in Apapa, the project has reportedly gulped $300m from both technical partners.

Jadesinmi said the development of the facility would result in lower service cost for the maintenance and construction of the FPSOs in the future and an exponential increase in economic activities as the facility would trigger investments throughout Nigeria.

She said, “There are currently no suitable facilities in West and Southern Africa. We have been talking with a lot of new clients, many of whom are outside Nigeria.

“Nigeria stands to gain a lot if we become the hub of petroleum and maritime activities in West Africa. It would have a multiplier effect on the other existing fabrication facilities in the country that would have to expand to meet the demand.”



– Punch

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