N228bn oil, gas fabrication facility rots in Lagos creek

the project) ran into some issues with the federal government over taxes and audit, so they called a force majeure on the contract. By that time, Kaztec Engineering had spent more than $600 million on the project.

“This facility was projected to save the country and generate an income value of $33 billion over a 10 year period, but the entire thing collapsed as a result of the force majeure.”

He said the ministries of justice, finance, trade and investment, NNPC and the Department of Petroleum Resources (DPR) are working to ensure the revival of the facility and others in a similar state.

The Director of DPR, Mr Sarki Auwalu, noted that critical equipment in the facility were not utilised for the benefit of Nigerians.

“The oil industry depends on facilities like this to actualise their investment because it is like a support system for the oil and gas sector.

“Our visit here is because an edifice we licensed is dormant. But we are going to make it active because we see it as an opportunity to grow the oil and gas industry.

“We have issued several licenses for modular refineries that need fabrications. We cannot allow this kind of facility to remain underutilised,” Auwalu said.

Auwalu also regretted that some fabrication projects are now done in China after the facility shutdown, a negative for the Nigerian economy.

The Director of Engineering at Kaztec, Mr Mike Simpson, said some of the unutilised equipment in the facility included a dive support vessel, pipe laying vessel and an already constructed jacket, which could be used for oil and gas operations.

He said when the facility was operating, it had 2,000 direct employees and 7,000 indirect employees.