FG reactivates dormant oil, gas support facilities

FG reactivates dormant oil, gas support facilities

Chinazor Megbolu

The Federal Government has said it would reactivate all moribund and dormant oil and gas support facilities in Nigeria.

This was disclosed by the Department of Petroleum Resources (DPR), in Abuja.

The department added that it was part of federal government efforts to increase the nation’s production capacity both in the upstream and downstream sector.

The oil and gas industry regulator also added the move would bring about development in the petroleum industry as well as create job opportunities.

The Director, DPR, Mr. Sarki Auwalu, in his remarks during an assessment visit to Kaztec Engineering Limited Fabrication Yard, Ilase Village, Snake Island in Amuwo-Odofin Local Government Area of Lagos State, also hinted that efforts are presently ongoing to double the contribution of the oil and gas sector to the nation’s Gross Domestic Product (GDP), to about 15 per cent from the current 8 per cent.

He further pointed out that he was dissatisfied that the Kaztec facility, licensed by the agency to provide support services to the oil and gas sector, had not been operational since 2015, as a result of contractual issues.

Auwalu buttressed that critical equipment in the facility were presently not being utilized for the benefit of Nigeria and Nigerians.

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

“Our visit here is that we see an 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,” Auwalu said.

He, however, maintained that the facility, when operational, could play a significant role in supporting and driving the federal government’s gas utilization, 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-utilized,” he said.

Auwalu also noted that due to the shut down of the facility, some of the fabrication jobs that could be done at the facility were being shipped to China, adding that such action was not good for nation’s economy.

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

He posited that some of the unutilized equipment in the facility were; a Dive Support Vessel, Pipe Laying Vessel and an already constructed Jacket, meant for oil and gas operations.

Simpson noted further, that, the facility when it was operational had 2,000 direct employees and 7,000 indirect employees, that had direct impact on the host community.