Federal Govt Backs Kaztec’s $1b Fabrication Yard in Lagos

By March 23, 2018 Investment News

The Federal Government has backed the systems, facilities and technological skill set used at the fabrication yard of Kaztec Engineering Company Limited, an arm of Chrome Oil Services Limited, located on Snake Island in Lagos.

Minister of State, Petroleum Resources Dr. Emmanuel Ibe Kachikwu, who led top government officials and international oil companies to the yard, described the billion dollar investment plan by Kaztec as a demonstration of faith in the Nigerian Content development policy.

Kachikwu urged industry operators to patronize more local goods and services as a credible, patriotic and logical strategy for cost reduction, noting that massive patronage of local content input into projects remains the best way to achieve lower production cost.

He said while the government was working to attract the right investment capital for field development activities, operators should fully engage existing in-country facilities for in-country value and job creation as well as indigenous capacity and capabilities development.

The minister acknowledged the technical capacity displayed by Nigerians at the Kaztecplant as impressive during his presentation on the activities of the firm. He noted that very few local oil service companies have been able to effectively position for the shallow water and deep offshore province from where the future development activities will come.

Kachikwu highlighted that the upcoming major deep-water projects including Eni’s led Zabazaba field, which will be operated by the Nigerian subsidiary, Nigerian Agip Oil Company (NAOC) and Shell operated Bonga South West-Aparo (BSWAP) field will create enormous jobs for Nigerian oil service firms. He noted the imminent final investment decisions on the projects would spark off huge in-country value creation.

He applauded Kaztec for its commitment, adding that the site of yard, which is in the remote part of the Snake Island, would open commercial and social activities in Ilaje village of the Island with multiple benefits including opportunities for skills acquisition and mass employment of youths, among others.

He noted that despite considerable milestones achieved in Nigerian oil and gas industry content development policy drive, the industry is still far from the 70 percent Nigerian Content target by 2020.

The Project Manager at Kaztec, Mr. Mike Simpson, said the fabrication yard was at the tertiary level of infrastructural development in a vast island space that holds a free zone status.

He said the company has already committed over $300 million in development of facilities for Engineering, Procurement, Installation and Commissioning (EPIC) contracts, and has mapped out another $450 million for the second phase of yard development with the outlook for incremental investments until the full development plan is realized.

The Chairman of Chrome Oil Services Limited, Sir EmekaOffor, said the company has the requisite capacity to rehabilitate and upgrade the nation’s ailing refineries if given the opportunity in line with the Nigerian Content policy of the government.


Source: The Nation