Nigeria Losing Jobs To China Over Moribund Facilities, DPR Cries Out

The Department of Petroleum Resources (DPR) has raised concerns
over moribund oil and gas facilities across the country.

Speaking during a visit to one of such facilities, a fabrication
yard located at Ilase Village, Snake Island, Lagos State, Sarki
Auwalu, Director of DPR, said the development would limit domestic
refining capacity and hinder projected benefits.

He insisted that the Federal Government was, however, committed
to reactivating the moribund oil and gas support facilities across
the country.

He added that the move was part of the government’s effort to
increase domestic refining capacity and gas utilisation to curb
unemployment and poverty in Nigeria.

Auwalu expressed dissatisfaction that the facility which was
licensed to provide oil and gas service had not been operational
since 2015 due to contractual issues.He expressed worry that the
critical equipment in the facility was currently not being utilised
for the benefit of Nigeria and Nigerians.

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

“Our visit is to the edifice that we licensed and it 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 seen an opportunity we can use to support our gas
utilisation, penetration and expansion programme. We have issued
several licenses for modular refineries that need fabrications. We
cannot allow this kind of facility to remain under-utilised,” he
said.

Mike Simpson, Engineering Director, Kaztec Engineering Limited,
said the facility became dormant in 2015 after its main contractor,
Addax Petroleum, declared a force majeure on its operations.

Simpson said some of the unutilised equipment in the facility
included a dive support vessel, pipe laying vessel and an already
constructed Jacket that could be used for oil and gas
operations.

The Department of Petroleum Resources (DPR) has raised concerns
over moribund oil and gas facilities across the country.

Speaking during a visit to one of such facilities, a fabrication
yard located at Ilase Village, Snake Island, Lagos State, Sarki
Auwalu, Director of DPR, said the development would limit domestic
refining capacity and hinder projected benefits.

He insisted that the Federal Government was, however, committed
to reactivating the moribund oil and gas support facilities across
the country.

He added that the move was part of the government’s effort to
increase domestic refining capacity and gas utilisation to curb
unemployment and poverty in Nigeria.

Auwalu expressed dissatisfaction that the facility which was
licensed to provide oil and gas service had not been operational
since 2015 due to contractual issues.He expressed worry that the
critical equipment in the facility was currently not being utilised
for the benefit of Nigeria and Nigerians.

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

“Our visit is to the edifice that we licensed and it 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 seen an opportunity we can use to support our gas
utilisation, penetration and expansion programme. We have issued
several licenses for modular refineries that need fabrications. We
cannot allow this kind of facility to remain under-utilised,” he
said.

Mike Simpson, Engineering Director, Kaztec Engineering Limited,
said the facility became dormant in 2015 after its main contractor,
Addax Petroleum, declared a force majeure on its operations.

Simpson said some of the unutilised equipment in the facility
included a dive support vessel, pipe laying vessel and an already
constructed Jacket that could be used for oil and gas
operations.