Nigerian Firm Partners With Korea's Samsung U.S.$250 Million

Nigerian oil and gas logistics provider, Lagos Deep Offshore Logistics base (LADOL) declared at the weekend that it had partnered Korean-based Samsung Company in the establishment of a $250 million integration facility in the country.

The Floating, Production, Storage and Offloading (FPSO) platform project is, according to a statement by the company, expected to blaze the trail as Africa’s first of its kind in Greenfield project development in the region’s Oil and Gas industry.

LADOL yard where the project is to be sited is said to be the only indigenous logistics services provider in the country, strategically located off the Apapa seaports in Lagos .

Samsung Heavy Company on the other hand, is a leading international Offshore EPC Company with interest in shipbuilding, offshore business development and marketing concerns.

“The partnership deal was set in motion during the week with the two organizations conducting a joint presentation of what the project involves, to the admiration of top officials of the Nigerian Content Development and monitoring Board (NCDMB), Nigerian Ports Authority (NPA), as well as representatives of the International Oil Companies (IOCs),” the statement read.

Chairman of LADOL, Ladi Jadesimi, who according to the statement conducted the guests round the facilities prior to the presentations, said the partnership had become necessary in order to set the pace for future building of FPSO facilities to serve the country and beyond.

According to him, no country in Africa for now, has the facility to integrate the project, adding that if Nigeria embarks on it now, “what it means is that all the jobs, all the foreign exchange, trainings for the FPSO, will now flow to Nigeria, rather than the trend continuing with the capital flight that goes with it”.

Jadesimi noted that up till now, such structures were still being built and floated abroad, noting that with the commencement of the project, only the shelf will now be transported to Nigeria where all the facilities will be fabricated and installed locally.

He pointed out that by so doing, more than half of the entire cost will now be expended in Nigeria with all the ancillary benefits of jobs creation, technology transfer and trainings.

Jadesimi also pointed out that in terms of benefits to Nigeria as a Free Zone, “When they bring in the shelf and build -in all the fabrications in Nigeria …, if the facility is to leave for the offshore located within the country, customs duties will be paid…and this runs into billion of naira. On the other hand, no duty is paid if the facility is taken to an offshore base outside of the country”.

Also speaking on the project, leader of the Samsung Korea team, Harris Lee, said the project was targeted at making Nigeria the central hub for Oil and Gas engineering and fabrication in the West-African sub region.

He said the company has taken steps to ensure the preservation of the Nigerian Content Act, by ensuring that Nigeria takes a minimum of 54 per-cents of the project needs while Korea would retain the remaining 46 per cents.

He further disclosed that his company was still discussing with the Nigerian Content Board with the possibility of Nigeria clinching more of the equity holding, “depending on what we would arrive at after considering all other variables”.

Mr. Lee who said the project construction would last for about 18 months and to be located within LADOL yard, disclosed that the partners had taken notice of the need to maximize the Nigerian goods and services and make available needs such as locally made valves, paints, cables and others.