NCDMB, indigenous firm commence construction of lubricants plant in Bayelsa

Nathan Tamarapreye, Uyo

The Federal Government says it remains committed to promoting the local content policy and reducing importation of products we could produce locally,

Chief Timipre Sylva, Minister of State for Petroleum stated this on Thursday at the groundbreaking of the ERASKON 64,000 litres per day lubricant and Chemical Blending plant and product Launch ceremony in Gbarain, Yenagoa Bayelsa.

Sylva was represented by the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote.

NCDMB is supporting the indigenous firm ERASKON Nigeria Limited with equity capital for the establishment of the plant which will create 200 direct jobs.

According to Wabote, Nigeria currently consumes about 250 million liters of engine oils per annum and this consumption grows at more than 5 per cent every year due to the addition of new vehicles and machinery.

He, however, regretted that the country’s blending capacity has remained constant at about 150 million liters showing a shortage of about 100 million liters.

He noted that the shortfall is met by the importation of finished lube oil products with the attendant loss of revenue and job opportunities.

The NCDMB boss explained that the partnership with ERASKON is line with the agency’s mandate to develop local capacity in the oil and gas sector.

“Section 70(h) of the Nigerian Oil & 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,” he recalled.

Wabote commended the vision of ERASKON management in setting up the lubricant plant which according to him will provide jobs for over 200 persons and over 800 indirectly.

Wabote who performed the groundbreaking ceremony on behalf of Sylva directed the use of ERASKO oil and lubricants for then NCDMB fleet vehicles as a demonstration of confidence in the indigenous company.

In his welcome address, the Executive Vice Chairman of ERASKORP Group Mr. Maxwell Oko explained that Nigeria accounts for about 20 per cent of Africa’s total demand for lubricants.

“The idea of building a lubricants blending plant follows our determination to contribute to Nigeria’s industrial development.

“Lubricants are the lifeline of every engine,” Oko said.

Oko commended the partnership between ERASKON and NCDMB.

He said: “Our confidence was further boosted by our partnership with the Nigerian Content Development and Monitoring Board (NCDMB) who, from their investment in us, demonstrated a clear commitment to our vision.

“Specifically, these lubricants blending project aims at providing employment, developing local manufacturing capacity, and increasing local content participation in the industry.

“We believe our people can grow better with the proper transfer of know-how and the best way to aid that process is to site companies where such know-how can be put to use closer to them.

“We want all Bayelsa people, Niger Deltans, and indeed Nigerians to see this project as part of our own achievements in commerce and industry.

Former President Goodluck Jonathan who earlier performed the launch of the product applauded Wabote for supporting ERASKON’s lubricant project and the Azikiel Refinery located in the same area.

“Today is a happy day for me. That we are seeing this in Bayelsa. This project will attract other investments and beyond increase the revenue of the state” Jonathan said.

The former president advised other youths in the state to emulate Oko by attracting investments to the state.

The plant is expected to produce 64,000 litres per day lubricants per day including engine oils, transmission fluids, hydraulic fluids specialized four-wheel-drive products, engine coolants, and specialty products such as waxes.

The facility also has the capacity to produce industrial chemicals such as drilling and production chemicals as well as Transformer and Turbine Oil, household products such as detergents and aerosols.

Dignitaries at the event include Dr ABC Orjiakor; Chairman Seplat Petroleum     Hon Kombowei Benson, Secretary to Bayelsa State Government, Amayanabo of Nembe, HRM King Edmund Daukoru, Mingi XII;

Others are Professor Benjamin Okaba, President, Ijaw National Congress (INC), Senator Biobarakuma Degi-Eremienyo (Bayelsa East); House of Representative member, Hon Preye Oseke, Southern Ijaw Federal Constituency.

Also present is former Federal Permanent, Secretary Dr Godknows Igali among others.