The Nigerian Content Development and Monitoring Board (NCDMB) has signed equity investment agreements with two companies -Duport Midstream Company for the establishment of an Energy Park in Egbokor, Edo State and Eraskon
Nigeria Limited, for the construction and operation of a lubricating oils blending plant in Gbarain, Bayelsa State.
The Board’s investments will catalyse industrialization, with the two partnerships expected to generate about 1,500 direct, indirect, and induced employment opportunities, in addition to several other spin-off economic activities that will be developed where these projects are located.
The planned Energy Park will have — a 2,500bpd modular refinery,a 30MMscfd gas processing facility, which will include a CNG facility and a 2MW power plant. The Eraskon lubricating oil blending plant will have the capacity to produce 45,000 litres per day and enhance the availability of engine oils, transmission fluids,grease and other products in the Niger Delta area.
The Executive Secretary, NCDMB, Engr. Simbi Wabote signed the Shareholders Agreements and Share Subscription Agreements at the Board’s liaison office in Abuja while Dr. Akintoye Akindele, Chief Executive Officer of Duport Midstream Company and Maxwell Oko, Managing Director of Erakson Nigeria Ltd signed for their firms,respectively.
In his remarks, Wabote disclosed that the investments were part of the approvals granted recently by the Board’s Governing Council chaired by the Minister of State for Petroleum Resources, Chief Timipre Sylva. He said that the investments were coming under the Board’s commercial ventures program and was in sync with the Board’s vision to serve as a catalyst for the industrialisation of the Nigerian oil and gas industry and its linkage sectors.
Wabote said that the partnership with Duport Midstream is in furtherance of the Board’s strategy to enhance in-country value addition, by supporting the establishment of processing facilities close to marginal or stranded hydrocarbon fields. He noted that the recent drastic drop in global oil prices had made it imperative to have local refining capacity, to reduce if not eliminate, cases of stranded oil cargoes without buyers.
On the partnership with Eraskon, the NCDMB Executive Secretary said that the blending facility has the capacity to be deployed for the production of other chemicals and reagents. “The packaging section can also be used for generating additional incomes for the business and for creation of employment ,”he said.
He said the Board was excited at the prospects of these partnerships in jobs creation, value retention,petroleum products availability, utilisation of our abundant gas resources and in the development of in-country capability.
In his comments, Dr. Akintoye Akindele conveyed the company’s excitement to partner NCDMB in the development of the Energy Park and assured that the project would add value to the nation’s natural resources and create wealth and social amenities for communities. He added that the Energy Park targets to create over 1000 jobs and impact 10,000 families, and indicated that the modular refinery would produce a combination of Naphtha,diesel, kerosene and HFO, otherwise known as residual fuel oil.
He pledged the company’s commitment to exceed expectations and help increase government’s revenue, reduce dependence on imported petroleum products Maxwell Oko, CEO of Eraskon expressed his delight that his company is being given an opportunity to contribute to the industrial development of Bayelsa State and the Niger Delta. He said the company would benefit from operating from the same industrial corridor with Shell Gas Gathering facility, Azikel Refinery and NCDMB projects at Polaku. He promised that the company would be” a good story” of NCDMB partnership. He said the Eraskon-NCMDB blending plant project would be completed in two years.
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