Leading downstream operator in the oil and gas sector; Oando Terminals Ltd. has confirmed said it had started constructing a jetty in Apapa to provide more efficient platform to deliver petroleum products to oil marketers.
The company said in a statement in Lagos issued by its spokesman, Mr Johnson Azuara-Kelvin, that the jetty would serve oil marketers currently using Moman Jetty.
It said that work on the facility was nearing completion.
Leading downstream operator in the oil and gas sector; Oando Terminals Ltd. has confirmed said it had started constructing a jetty in Apapa to provide more efficient platform to deliver petroleum products to oil marketers.
The company said in a statement in Lagos issued by its spokesman, Mr Johnson Azuara-Kelvin, that the jetty would serve oil marketers currently using Moman Jetty.
It said that work on the facility was nearing completion.
Oando’s disclosure however comes about two weeks after Nigerian Ports Authourity (NPA) branch of the Senior Staff Association of Communications Transport and Corporation (SSACTAC) condemned moves by another petroleum product marketing firm; NIPCO Plc to set up a 1.5kilometre petroleum pipeline tank farm facilities from the popular Waziri jetty.
The SSACTAC had also raised the alarm of any attempt by the oil and gas firm to establish a tank farm at NPA dockyard facilities, in Apapa which, according to them, has the tendency to impede free flow vessels calling at the ports.
President of the association; Comrade Umar Jimoh Omeiza had while briefing journalists in Lagos recently, described the move as mischievous and allegedly being backed by some political interest, who are trying to thwart the effort of the president of the country at enhancing the nation’s maritime sector potentials and capabilities.
He had added that, "there will be serious ecological side effect in terms of pollution that will definitely arise from NIPCO Plc activities, even as he asked: Who bears the brunt, who pays for the destruction and who cleans the waterways?
But Oando said yesterday that the jetty would have a half-kilometre sub-sea pipeline and a 16-inch three-kilometre onshore pipe to deliver more than three million tonnes of petroleum products a year.
It said that the facility had been identified as “an immensely valuable asset in the Oando stable as it will allow 45,000 DWT vessels to berth and discharge their products without littering and demurrage”.
According to the statement, the cost saving across the industry will be in excess of 120 million dollars (about N18.6 billion) per annum.
“Once operational, the sub-sea marina jetty will contribute significantly to Oando’s overall net profit as a result of tolling fees and substantial cost savings on imports and demurrage.
“It will also ensure an increase in the utilisation of existing storage space and provide significant reduction of constant delays caused by infrastructure constraints in the Lagos area,’’ the statement.
It said that in spite of reduction in importation, Oando remained the largest indigenous supply and trading player in sub-Saharan Africa.
The statement said that the company had 15 per cent market share in importation of petrol.
It said that Oando had consistently explored ways to further increase its margins and add value to the downstream sector in the oil industry.
“The completion of the jetty will be a welcome game-changer as it will vastly improve distribution efficiency and lead to higher margin volumes with an estimated 36 million dollars (about N5.58bn) expected revenue annually”, the company added.
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