Oil and Gas: Fears of exclusion grips Lagos

President Jonathan Goodluck

... As Onne based firm allegedly mulls monopoly of oil and gas pipeline operations

Some Lagos based companies may no longer be at peace, as indications emerge that a River State based company has begun a process of lobbying for Government approval to emerge a monopoly, on oil and gas business operations.

The fears arose, as competition stiffens, because the concerned Lagos based companies have invested about $1.7bn; and granting such monopolistic approval could jeopardize both their capitals and anticipated profits.

It was gathered that while the Rivers based company argues for a monopolistic endorsement limiting pipelines operation to Onne, since most oil and gas operations are currently taking place in the zone, the Lagos group counters the argument on the basis that such move, would negate the laudable visions of the Local Content Act 2010.

The Lagos based stakeholders believed that to this effect, a secret proposal may have already been dispatched to the Presidency, urging Dr. Goodluck Jonathan’s urgent endorsement.. 

An aspect of the document it was further learnt, specifically pleaded with Mr. President to, amongst other things, “direct all the relevant agencies including the Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC) to ensure that Samsung utilizes and handle the integration” of a historic $4.1billion Egina Project at Onne, River state.

It was indicated that some of the Lagos based companies which would be directly affected adversely, if the plea for monopolistic approval was granted were the Nigerdock, which reportedly attracted about $230 million, in the past three years  as direct investment, totally over $1.billion in overall investment in the company; the Kaztec Engineering, at the same Snake Island in Lagos , with about $100 million investment, the Eko Support Oil and Gas Logistics base in Apapa port which was completed in 2014, at a cost of over $124 million, as well as LADOL base, where over $100 million has already been invested, and which presently, is the location of Samsung Heavy Industry’s only fabrication yard in Africa.

It is also believed that about  50,000 jobs which the investments in Lagos could generate may become threatened if the prayer of the River State company is granted.