A Review of the Nigerian Energy Industry

‘$1.5Billion Badagry Dockyard not owned by NLNG’

Badagry FTZ mega sea port construction to commence soon.
*Badagry FTZ mega sea port construction to commence soon.

09 September 2015, Lagos – The Chairman, Badagry Ship Repair and Maritime Engineering Company (BSMEC), Dr. Taiwo Afolabi said yesterday that the $1.5 billion dockyard project in Badagry, Lagos, is owned by the company and not the Nigeria Liquefied Natural Gas (NLNG) Limited.

Afolabi, who doubles as chairman of a participating company that formed the consortium comprising Sifax Logistics and Marine Services Limited, was responding to the ongoing controversy trailing its recent decision to site a $1.5 billion dockyard project in Lagos State.

Speaking in Lagos on behalf of the consortium, Afolabi said: “BSMEC is the sole owner of the Badagry Dry Dock Project and no one else. BSMEC is made up of five different successful Nigerian companies who came together as core investors to form Badagry Ship Repair and Maritime Engineering Company, which is a joint venture between Sifax Logistics and Marine Services Limited, Energy Nature Limited, GMT Energy Services Limited, Japaul Oil and Maritime Services plc, and SIVC Infrastructure DMCC (Sahara Group Limited).

“Nigeria LNG is not a part of the consortium and is not an investor in the construction of the dry dock project.
To be clear, the Badagry Dry Dock will be used for the maintenance of a wide range of oil and gas related vessels, including very large crude carriers (VLCCs), offshore drilling rigs, offshore support vessels, in addition to large LNG carriers.”

The dockyard is also planned to be a hub to be used for dry docking vessels from other West Africa countries, he affirmed, saying the choice of location was made on a purely business interest basis, taking into account several factors considered important to investors.

The project is in line with the government’s drive for Nigerian content and will create capacity for Nigeria and help address capital flight, he said.

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