FG Pledges To Revive Kaztec Engineering’s Fabrication Yard After 8-Year Shutdown

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With the goal of enhancing investment in Nigeria’s Oil and Gas Industry, and the broader Blue Economy, the Federal Government, headed by President Bola Tinubu, is dedicated to providing strong support for the reactivation of Kaztec Engineering Limited’s $1 Billion oil and gas fabrication yard situated on Snake Island in Lagos State, specifically in Ilashe.

The Minister of Marine and Blue Economy, Mr. Gboyega Oyetola, made this commitment during his on-site inspection of the fabrication yard, which has remained dormant for the past eight years due to a force majeure declaration by Addax Petroleum, the project’s technical partner.

This pledge followed a recent visit by the Senate Committee on Petroleum (Upstream), led by Senator Eteng Williams, reflecting the government’s dedication to investigating the reasons behind the project’s suspension, and finding solutions to revitalise it: contributing to Nigeria’s economic growth.

Originally known as the Antan Project, this fabrication yard, with an estimated cost of approximately $1 Billion, was initiated in 2012 to support the drilling of over 19 Million barrels of Nigerian crude. Although it had received over $600 Million in investments, and reached 70% completion, it was designed to be a comprehensive facility for offshore platforms, large offshore modules, Floating Production, Storage, and Offloading (FPSO) refurbishment, and new build jackets.

Furthermore, it aimed to provide services like pipe milling, pipe coating, dry and floating docks, logistics, supply base, and skill development, catering to the needs of oil and gas companies in Nigeria and offering job opportunities for Nigerians.

The project’s progress halted eight years ago due to a force majeure declared by Addax Petroleum over tax and audit disputes with the Federal Government.

This reactivation of the facility is projected to generate over $33 Billion in revenue and foreign exchange savings for the government over a decade; in addition to creating over 3,000 direct jobs, and over 10,000 indirect job opportunities for Nigerians.

Minister Oyetola, after touring the facility and discussing the concerns with Kaztec officials, reassured the entirely Nigerian-owned firm of the government’s support to revive the yard. He emphasised the importance of encouraging Nigerian investments, and job creation as part of the government’s Renewed Hope agenda.

Kaztec Engineering’s Chairman, Chief Emeka Offor, expressed his appreciation for the government’s visit and detailed the extensive investments the company had made in the project. He highlighted the potential for job creation and foreign exchange savings, aligning with the government’s goal of preserving foreign exchange.

 

 

 

 

 

 

 

 

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