A leading indigenous oil and gas company, Oando Plc, has commissioned $150million mid stream jetty to save the country, $50 million in revenue annually.The idea to brigde the infrastrucural gap in the downstream sector and the need to increase the delivery capacity and offloading efficiency of petroleum products into marketers’ storage facilities in Apapa, Lagos, was conceived by Oando Plc.
Oando said it successfully conceptualized, executed and completed the project in 2016 before handing over to OVH Energy after the divestment of Oando Downstream.
OVH Energy is a consortium of Oando Plc, Nigeria’s leading oil and gas company, Vitol Group, the world’s largest trader of energy commodities and Helios Investment Partners, the premier Africa-focused private equity firm. OVH Energy has over 350 service stations and over 500 industrial customers across Nigeria.
Speaking at the commissioning, the Chairman OVH Energy, Mr. Wale Tinubu said, “The Lagos Midstream Jetty was conceived as an innovative industry solution to the perennial challenges marketers faced in the importation of petroleum products. Over the past 30 years, marketers have spent approximately N1.6trillion ($4.5 billion) on lightering, with 90 per cent of this spend flowing out of the country.
“Today we have delivered a first class piece of engineering that meets global standards, is the first of its kind in sub-Saharan Africa and will be of invaluable benefit to the industry and nation at large. I must thank our regulators, bankers and contractors who believed in us from the start. It is a proud moment for Oando PLC who conceived the idea and OVH who have taken up this mantle.
“From conception to realisation, the idea of the Lagos Midstream Jetty is now a reality and is indeed another infrastructural success for us, our nation and the continent.’’
Tinubu explained that marketers consistently face the very expensive discharge of products into Apapa ports which erodes their profits. Sometimes it cost oil marketers an average of $900,000 to discharge petroleum products, more than it costs to ship a cargo of products from Europe.
The General Manager of ASPM Limited, a subsidiary OVH Energy, Mr. Deji Osikoya, stated that “The Lagos Midstream Jetty is an innovative infrastructure investment designed to radically transform the efficiency of Nigeria’s downstream landscape and boost Nigerian’s petroleum downstream economics. We expect the Jetty to become an extremely valuable and viable portfolio especially for marketers, reducing delays caused by infrastructural limitations in Lagos, thus improving marketers’ service delivery and profitability and reducing the financial drain on the nation’s resources.”
Speaking at the event, the Group Managing Director (GMD) of the NNPC, Maitanki Baru said, “The Lagos Midstream Jetty is an encouraging example of Public Private Partnerships and proof that both the private and public sector have come to the realisation that infrastructural investment and build is a shared responsibility requiring collective leadership, learnings and innovation.”
In a show of support, government officials such as the Minister for Transportation, Rt. Rotimi Amechi; CCO, NNPC Downstream Ops, Mr. Henry Ikem Obih; Director, Vitol Africa, Pierre Barbe Vitol; Director, Helios Investment Partners, Kamal Bakrin amongst others, graced the event.
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