July 13, 2024

NNPCL, AKSG., Solution Hubs Ltd, agree to establish full-service onshore marine construction support for oil, gas companies in Akwa Ibom

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Oredola Adeola

A partnership deal for the development of a full-service onshore base for marine construction support and other integrated logistics operations that can service the Nigerian oil and gas industry and West and Central African region, has been initiated between Nigerian National Petroleum Company Ltd(NNPCL), Akwa Ibom State Government and the Solutions Hub Ltd.

The shareholders’ agreement was sealed by all the partners on Friday in Akwa Ibom State.

Senator Margery Okadigbo, Chairman, Board of Directors, NNPCL, said that the NNPC’s commitment to the Ibom Solution Hub signals to potential investors and business partners that NNPC Limited means business.

She said that as a National Oil Company transiting to a full-scale Energy company, is investing in the country’s Upstream Oil and Gas industry which is being construed as one of the most expensive ventures within the global business landscape.

According to her, NNPCL’s exposure to businesses like 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, “logistics costs constitute the most to the 70 percent total operating expenditure for the oil and gas industry beside human relations and direct handling costs.

“A further breakdown of the logistics costs shows that Marine Logistics account for the most significant component contributing about 44 per cent of costs.

“Some of these costs could be attributed to a shortage of appropriate facilities where these services are required.

The NNPCL’s Board Chairman however noted that President Muhammadu Buhari has directed the Corporation 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 Ltd, in partnership with the Akwa Ibom State Government and foreign Investors, to develop an integrated logistics hub that will 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,”

She further confirmed that all relevant governance checks have been adhered to for NNPC Ltd to be a party to the shareholders’ agreement.

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