The Nigerian Content Development and Monitoring Board (NCDMB) and ERASKORP Nigeria Limited have launched a 64,000 capacity blended lubricant plant in Bayelsa State.
The plant, when fully operational, will contribute to Nigeria’s industrial development and about 700 million litres yearly of lubricant consumption which accounts for about 20 per cent of Africa’s total lubricants demand.
Speaking during the product launch and groundbreaking for the plant at Gbarain, Yenagoa LGA of the state on Thursday, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said the feat is another very important milestone in Nigeria’s push to deepen local content and reduce importation of products that could be produced locally.
Represented by the Executive Secretary of NCDMB, Engr Simbi Wabote, the Minister explained that Nigeria is currently consuming about 250 million litres of engine oil per annum which is growing at more than 5% every year due to the addition of new vehicles and machines.
He said: “The in-country blending capacity has remained constant at about 150 million litres, showing a shortage of about 100 million litres. This shortfall is met by the importation of finished lube oil products with the attendant loss of revenue and job opportunities.
“There is currently no lubricant blending plant in Bayelsa State as 100% of lubricants consumed in the state are transported from other states mainly outside the South South region.
“With the expanding economic activities in Bayelsa State and neighbouring states, ERASKON saw the opportunity to domicile, and ultimately domesticate, the production of lubricating oils and related products in the state.
“ERASKON submitted proposals to the board and after diligent review of the technical and commercial viability of the proposal, we are delighted at the journey so far on the project.
“Section 70(h) of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 mandates the board to assist local contractors and Nigerian companies to develop their capabilities and capacities to further the attainment of the goal of developing Nigerian content in the Nigerian oil and gas industry.
Also speaking, Executive Vice Chairman of ERASKORP, Mr Maxwell Oko, said the company has the technology and capacity to produce other products outside of the lubricants space.
He explained that in the second phase of the plant development, they would be embarking on drilling and production chemicals as well as transformer and turbine oil.
“This project is a world-class 64,000 litres per day fully automated lubricants blending plant to be built on eight hectares out of the 50 hectares Industrial Park.
“On completion of construction, this facility will produce high-quality engine oils, transmission fluids, hydraulic fluids specialized four-wheel-drive products, engine coolants and speciality products such as waxes,” he said.
MEANWHILE, The former President, Goodluck Jonathan has commended ERASKCORP Nigeria Limited for bringing the company to Bayelsa State, saying that the establishment of the company will go a long way in improving the internally generated revenue of the state. Speaking in Yenagoa, the state capital, yesterday during the unveiling of the ERASKON products, Jonathan stated that the com- pany when operational would also generate more employment to the people especially the locals, stating that the firm should employ more youths of the host community.
While lamenting that the oil industry supposed to impact on the host communities, the former President wondered that some oil industries would say that they invested $1 billion Dollars in the local economy, when only $50 million Dollars might have entered the local economy and the remaining would be used to import items and support industries outside Nigeria. He said: “We need to do something about local content. Wemustencourageother smaller industries. When wedothat, wecancreatejobs for our people. This will add value to the local economy and with this project; I pray that more companies will come to Bayelsa State.”
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