The Federal Government has backed the revival of the $1 billion Kaztec Engineering’s oil and gas fabrication yard at Snake Island, Ilashe, Lagos State.
Minister of Marine and Blue Economy, Gboyega Oyetola, spoke yesterday in Lagos during an inspection of the fabrication yard, shut down for eight years due to force majeure declared on it by Addax Petroleum, the technical partner.
The minister’s visit came a day after the Senate Committee on Petroleum (Upstream), led by its Chairman, Eteng Williams, visited the location as part of its commitment to investigate the reasons behind the shutdown, to seek solutions for reviving the facility.
The fabrication yard, otherwise known as Antan Project, estimated to cost about $1 billion, started in 2012 and was to support the drilling of over 19 million barrels of crude.
The project, which had gulped over $600 million and is 70 per cent complete, is expected to be a one-stop shop for fabrication of offshore platforms, large offshore modules, Floating Production, Storage and Offloading (FPSO) refurbishment, and build jackets.
It is also intended to provide facilities, such as pipe mill, pipe coating, dry and floating dock, logistics, supply base, and skill development, while satisfying project delivery needs of oil and gas firms, with jobs for Nigerians.
For eight years, activities at the site ceased owing to a force majeure declared on it in 2015 by Addax Petroleum, the technical partner, arising from taxes and audit issues between the Federal Government and Addax.
The facility was projected to generate over $33 billion in revenue and foreign exchange savings over 10 years, in addition to over 3,000 direct jobs and 10,000 indirect jobs.
Speaking after getting a briefing from Kaztec officials, the minister, who was taken round the site by the Chairman of Kaztec Engineering, Chief Emeka Offor, the Technical Director, Mike Simpson, among others, assured the firm he would support it.
He acknowledged the company had made investments in Nigeria despite bottlenecks that led to halting the project, saying the government would review all concerns raised by the company to resolve issues and reactivate the fabrication yard.
Oyetola said: “I want to assure you we are going to support you in this project. You’ve spent so much and invested so much as a Nigerian. That’s the kind of thing we want to see happening in our country. So, whatever bottlenecks, issues, can be resolved.
“We will look at all these issues holistically to support you. We want to encourage Nigerians to invest in Nigeria. That’s part of the Renewed Hope agenda of the President, and the fact the ministry is created for the marine and blue economy, which is part of what you are doing here.
“You can be sure you have my support in channelling your proposals, your observations, and constraints that have not allowed you to actualise your dream of keeping this project on course”.
The minister, who described the project as a win-win situation for all, commended Kaztec for having so much capital tied down in the project for years and still unrelenting.
He added: “I think we should commend you. We will support you in any way we can. I thank the management for the commitment and passion to stay on the job. And we are trying to ensure we have opportunities like this that will create jobs for our youths. So, it sits as part of the eight pillars of the administration.
“Job creation is part of it. And with the kind of jobs you are talking about, it will take our youths off the streets.
“That’s something we should encourage. I need to know where government can come in…’’.
“And some of these assets are charged $1 million to $2 million a day, depending on the size of the equipment, and you can imagine if you are paying $1 million a day, times 60 coming and times 60 going and this affects us negatively.
“So, the model we have done here will stop all those wastages. And we are happy to be patronised. We want to be challenged. We want to make sure that we go back to the intention and manner of this project. The objective of setting up this place was to help Nigeria”.
