UYO
With only two major centres in Nigeria that provide a shore base for logistics and other services for the oil and gas industry, LADOL in Lagos and INTELS in Onne, Port Harcourt; Ibom Solutions Hub in Ibaka, Mbo, has debuted the industry, bringing the number to three.
NNPC board chairman, Senator Margery Chuba Okadigbo, who noted the inadequacy of maritime infrastructure stated that high costs could be attributed to a shortage of appropriate facilities where these services are required.
Okadigbo said human relations, logistics, and direct handling costs represent almost 70 percent of the total operating expenditure for the industry, with logistics costs contributing the most after human relations.
According to her, a further breakdown of the logistics costs shows that Marine Logistics account for the most significant component contributing about 44 per cent of costs.
In recognition of these challenges, Okadigbo told the gathering that the federal government, under the leadership of President Muhammadu Buhari and the minister of State for Petroleum Resources, directed NNPC to work with all relevant agencies to democratize and increase the number of shore base locations equipped appropriately for effective and efficient service delivery at a competitive cost.
She said, “The proposed Ibaka industrial complex is one of such efforts by NNPC in partnership with AKSG and foreign investors, to develop an integrated logistics hub that can service the Nigerian Upstream industry and the entire Gulf of Guinea.
“This facility is entirely intended to be funded by private funds and would help deliver benefits such as employment creation, competitive logistics rates, increased offshore accessibility and services, infrastructural development and business creation.
“Indeed, the investment in the Ibom Solutions Hub at Ibaka, designed as a full-onshore service and offshore access base, is timely and strategic.
“It is my immense privilege and honour to, on behalf of the board of directors and the management of NNPC confirm that all relevant governance checks have been adhered to for NNPC to be a party to the shareholders’ agreement.”
She expressed appreciation to the President for his strong leadership and speedy approvals, as well as to the government and people of Akwa Ibom for their invaluable support and hospitality, without which the project would not have commenced.
“This is a glimpse of the new NNPC, and I would like to use this platform once again to invite other potential investors, foreign and local, to take advantage of NNPC’s renewed investment appetite to secure their right to play in Africa’s largest market by partnering with its largest energy company ,NNPC,” she added.
Giving an overview, Okadigbo said that as a national oil company transiting to a full-scale energy company, the NNPC’s commitment to the Ibom Solution Hub signals to potential investors and business partners that NNPC means business.
The board chairman said in the event which was attended by the Governor Udom Emmanuel that over the years, the Nigerian Upstream Oil and Gas industry has been labelled as one of the most expensive to do business with globally.
She said this has impacted the profitability of investments and the ability of the government and host communities to benefit from the value created from oil and gas exploration and production.
She said, “The proposed Ibaka industrial complex is one of such efforts by NNPC in partnership with AKSG and foreign investors, to develop an integrated logistics hub that can service the Nigerian Upstream industry and the entire Gulf of Guinea.
NNPC group chief executive officer, Mr Mele Kyari, described the event as a very important one in the history of the NNPC.
Represented by NNPC executive vice president, Upstream, MrAdokiye Tombomieye, Kyari said the day will be remembered as the day that NNPC collaborated with AKSG and it’s partners in walking the talk by emplacing an actionable and bankable private sector-led offshore location base.
The project, he stated, will transform the logistics infrastructure landscape of the nation and serve as “a game changer for not just the oil and gas industry but for the economy of our dear nation.”
He said, “NNPC is committed to work with AKSG and the Ibom Solutions Hub to expeditiously deploy all resources necessary to make this project a reality.
“Today is an important milestone, but it is important to note that the journey has just begun on this important project. |, therefore, implore all stakeholders to closely collaborate with us in making this a reality.
“On behalf of NNPC we convey our profound appreciation to your Excellency for your strong leadership, the board chairman and members of NNPC, all agencies of government and our partner AkiCorp, a fully owned company of the Akwa Ibom government for their unwavering support in bringing to life this project that will significantly redefine our economies.”
Ibom Solutions Hub is a full-service onshore base for marine construction support.
It is being proposed to be located on a 40sq kilometers site on the Ibaka-Calabar River waterway to the sea confluence in Nigeria.
It is already designated a free trade zone by Nigeria Export Promotion Zone Authority (NEPZA) and owned by Akwa Ibom government.
Land to be acquired for 99 years lease by Ibom Solutions Hub Limited.
It is modeled to be an alternative to existing logistics bases and designed to offer the offshore construction support to West and Central African regions
The Nigerian National Petroleum Company (NNPC)signed a shareholder agreement with Akwa Ibom State government to develop an integrated logistics hub (Ibom Solutions Hub) that can service the Nigerian Upstream industry and the entire Gulf of Guinea.
The partnership which was sealed at the weekend in Uyo, is in line with strategies being taken by the NNPC management to reposition the national oil company to operate commercially and deliver greater value for Nigerians.
Based on the shareholder agreement, the NNPC is to have 30 percent of the ownership, AKSG 20 percent while Ibom Solutions Hub has 50 percent.
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