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The in-country affiliation of the $3.3 billion Egina Amphibian Assembly Storage Offloading (FPSO) has been declared by abounding as a advance action in Nigeria’s  oil and gas  breadth and a celebration  of the country’s local  content  capacity. Nigerdock FZE, a accessory of  Jagal Energy,  amid in Snake Island Chip Chargeless Zone, Lagos, was  able to deliver  about  7,500 tonnes of the FPSO appurtenances, the accomplished bulk of artifact by any backyard on the Egina contract. The aggregation is  acclaimed as home to an adopted artifact adeptness as able-bodied as the bigger shipyard in West Africa. Nigerdock’s Managing Director/CEO, Mr. Pade Durotoye, reveals to Kunle Aderinokun the company’s role in the boarded artifact of the Egina FPSO and its bounded agreeable drive, which saw it appoint over 5,000 Nigerians in the mega project.  Durotoye additionally shares his actual and abiding plan to reposition the aggregation as a accomplice of best in the oil and gas account industry

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As the new CEO of Nigerdock, what is your concise and abiding eyes for the company?

In 2014, the oil industry went into oil bulk and action slump and we are aloof alpha to recover. All the account companies in the industry appropriate now are still action through a actual difficult period. There is still not abundant activity. Therefore, my primary albatross in the concise is to focus on acceptable new affairs and accretion advantage while ensuring whatever assets and affairs we already accept are absolutely leveraged.

I allegation advocate Nigerdock’s operational arete and assure the affirmation of our people, communities and environment. Alike admitting the bearings is tough, bodies accept to be motivated. My affairs in the concise are appropriately actual tactical. Authoritative abiding that we bear on our promises, befitting the aggregation as able as it should be and befitting our audience delighted. And finally, ensuring that we accept competitive.

In the long-term, we allegation to reposition Nigerdock. Nigerdock started out as a shipyard, and actual bound in 2007, we became a artifact leader. Afore then, about all the topsides and jackets in the country and adopted were imported, abundantly from Asia and the US. The Koreans did a lot of assignment and the administration of Nigerdock at the time absitively that it was time for us as a aggregation to footfall into that arena. This was way afore Nigerian agreeable became fashionable.

In the continued run, our ambition is to change Nigerdock to a assembly systems company, not aloof the artifact of topsides, but additionally their maintenance, upkeep, modification designs and reconfiguration. Whatever assembly systems advice our audience accept optimum in their bulk and in their efficiency, we will seek to accompany to them. Historically, the audience will adjudge on the designs of the platforms, lob them over the bank to the artifact industry and we will body it for them. Now we are saying, let’s board a little bit bigger with you, let’s accept what your objectives are and let us advice you with our own skills, not aloof as a artifact company, but as an engineering company, to extend solutions to industry challenges in the best cost-effective manner, application the accommodation of the Nigerian environment, Nigerian talents and the Nigerian industry to your advantage. For Nigerdock, it is absolutely about transformation. We appetite to be a afterpiece accomplice to our clients, accumbent to their key objectives and in a abstinent way, administration in some of their risk, all the while continuing to fly the banderole of an aboriginal company. We were the aboriginal to set the accent of the in-country artifact capabilities. Now, a lot of added Nigerian companies accept appear up and actual abundantly entered the market. We are actual appreciative to be pioneers, but it is time to redefine the game.

Are there affairs to aggrandize and alter your operations, accurately Nigerdock exploring added industries?

The acknowledgment is both yes and no. No, because we are already diversified, but not abundant bodies are acquainted of that. In accession to the shipyard which is still the bulk of our business and adopted fabrication, we accept the acumen and accumulation abject business. The ambit of casework we currently action board abounding chip engineering, accretion and architecture (EPC), or stand-alone engineering, accretion management, onshore and adopted fabrication, amber acreage modifications, t maintenance, asset aliment management, address repair, abyssal casework and associated abject abutment services. So we are already diversified. What we allegation is to augment our applicant adeptness above oil & gas by leveraging added of our absolute infrastructure.

Furthermore, Snake Island Chip Chargeless Breadth has abounding anchorage cachet agnate to any burden port, which allows us handle all-embracing abyssal cartage absolute to Nigerdock. The Chargeless Breadth has customs, anchorage health, clearing and all the abounding requirements to acceptation into Nigeria and bright accouterments faster and better. If absolutely functional, this will affluence the cartage at added terminals, breadth argosy accept to break adopted and delay for a circling number. As a result, we are able to accompany cogent bulk accumulation to our clients. Those are the things that we appetite to do. We already accept the resources, we accept the investments, we accept the materials, the talent, the antithesis sheet, we aloof allegation to advantage all of these.

With over $500 actor invested in Nigerdock post-privatisation, the accommodation is there, the artifact backyard and the equipment. We now accept to accompany this to our audience in the new agreement that helps them to abate their all-embracing cost.

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How will you appraise Nigerdock afore and afterwards privatisation?

Well, I can abandoned acquaint you from belief I heard because privatization was done from 2001 to 2003, continued afore I got here. Prior to that, Nigerdock was abundantly a shipyard, a actual acceptable one. There are abounding bodies I accept met who allocution about canonizing the Nigerdock of old, it was a acceptable shipyard and additionally attempted some address building. But the transformation aback privatisation went above the about-face of the business; it went into the transformation of the accumulated mindset, of training, and development of aptitude of account commitment focus, of efficiency, those things accept appear post-privatisation. The focus on safety, the focus on chump satisfaction, the focus of profitability, those are the added things that came afterwards the privatisation. Those are the things that primarily differentiate the two eras.

What are the bulk propositions that differentiate Nigerdock in the industry?

First and foremost is our capacity. We are by far the best resourced artifact backyard in Nigeria. We accept the admeasurement to cull off artifact of up to 25,000 tonnes annually. We are additionally chip on an Island, which is independent and secured. We accept all the key assets to not aloof in-load accessories and actual cheaply, but off-load completed work. We additionally accept apartments and bungalows, breadth we can board up to 500 bodies on the island. There is cipher abroad that can do that. We accept the shipyard with our amphibian and dry docks, cipher abroad has that. What we can accommodate as Nigerdock in and of itself on the Island, is already unique, afresh you accept to band on the Jagal Energy bend and the actual acknowledged relationships that Jagal has been able to body with apple chic companies such as Subsea 7. Jagal and Subsea 7 accordingly own a aggregation alleged Nigerstar 7, a arch aboriginal EPCI aggregation that is focused on engineering, transportation, accession and action administration of subsea to apparent systems. Nigerdock is carefully accommodating with Nigerstar 7 and a few added companies, and this is addition cogent differentiator. It puts us in a bulk alternation that is actual unique, that allows us to bear our solutions to our audience in a actual safe, cost-effective and action assured way. That is what makes us unique; there is no agreement like that in the industry today.

Before the Egina FPSO, cipher anticipation a action of that consequence could be done in Nigeria. How were you able to cull it off?

Well, it is not accurate that cipher anticipation we couldn’t, we’ve consistently had the accommodation to backpack out the project. For example, as far aback as 2009, Nigerdock bogus 7,500 tonnes of boarded modules for the Usan FPSO. We accept additionally had acquaintance on four added FPSOs. What was done with the Egina FPSO that was atypical was the in-country integration. What is absolutely alluring about the accomplished Nigerian agreeable advance is that there are abounding things we consistently had bookish accommodation to assassinate in-country, but didn’t accept the will, as a people, to assert it should be done. And so, the absolute success adventure of the Egina FPSO affiliation and all the artifact that was done is abundantly the success of discipline and determination. It is not that the accommodation was not there, but now we accept the will to say it allegation be done in-country.

The additional affair we allegation to apperceive is that we will accept to accomplice with all-embracing companies. The Egina affiliation was done by Samsung Heavy Industries on Ladol’s site. Sometimes we allegation to accommodate that acumen that it was absolutely a Samsung arrangement application Nigerian talent, application accessories that has been invested in Nigeria on Ladol to actualize the capacity. So, now that the discipline has been imposed on the system, the investments accept been made, you will accept to see the aing steps, and the aing accomplish and the aing steps. These are acutely circuitous and big-ticket projects. They are actual alarming if you get it wrong. We allegation to be accurate as we clip ourselves as an industry, but acutely there is no action back.

What role did Nigerdock comedy in the Egina project?

FPSO architecture and affiliation is a actual circuitous action and there are abounding $.25 and pieces to it. We were advantageous to be one of the contractors that provided assertive aspects of the architecture of the Egina FPSO. We congenital about 7,500 tonnes of what we alarm the appurtenances, these are the helideck, riser porches, bumpers, assorted aspects of that FPSO which were alien to the Samsung backyard in Korea and Nigeria for accession and affiliation on the FPSO. The 7,500 tonnes performed by Nigerdock for the Egina FPSO was the accomplished bulk of artifact by any backyard on the Egina arrangement in Nigeria.

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Nigerdock has historically taken a actual humble access to touting our achievements. We are actual professional; we aloof appetite to get things done safely. So, we didn’t draft our horn alike admitting a abundant bulk of architecture and artifact was done in Nigerdock. Actual few bodies apperceive that. We accept about realised that it is additionally important that we acquaint our success story, not in a way that is self-serving, but in a way that acknowledges the contributions of the 5,000 additional Nigerians who formed on that project. What they did was apple class. The accommodation that they developed was apple class. The affirmation ambiance and their affirmation aftereffect were apple class. So, it is because of those bodies that we are cogent the story, not because we appetite any added glory, but because we allegation to recognise the contributions of those bodies and their families to the Nigerian economy. It is significant.

What were the challenges faced in architecture the Egina FPSO?

Safety and operational arete were top priorities. Ensuring our bodies were accomplished and accessible to perform. Maintaining the programme to the client’s deadlines as we were allotment of a circuitous accumulation alternation of contractors and account providers on a massive project. We were accomplishing all these things, appropriation equipment, rigging, scaffolding, adjustment at heights, adjustment at angles, all the while ensuring that cipher got hurt. Those were the accepted challenges, but that is our business. That is what we do and that is why we are a adopted architect to the oil and gas industry.

How is Nigerdock accidental appear authoritative Nigeria the hub of addition in oil and gas casework in Africa?

Being the hub of addition in Africa is good, but it is absolutely added important that we are innovating for ourselves as a country. The oil bulk ambiance has changed, we allegation to focus on sustainably abbreviation bulk and accretion efficiency. We allegation to focus on the bulk of assignment that is done in-country and that is breadth Nigerdock is arch the charge. We allegation to accept to abound Nigerian talents, advance our capacity, and our adeptness to deliver, to appearance and accord the bodies who own the assets that we assignment on the aplomb that assignment can be done here.

In what way is Nigerdock accidental appear bounded agreeable development in Nigeria in its sector?

Nigerdock is recognised in the industry as the “Nigerian Agreeable Champion”. We accept an automated training arm, the Nigerdock Training and Development Academy, that is committed to accouterment the accomplished affection needs-based training achievable in our industry. One of the things that we like to allocution about is the cardinal of Nigerians we accept trained. We accept accomplished over 6,000 people. In the past, we accept concentrated a lot on technicians but, now we are alive on architecture the accommodation of those at the administration cadre. Personally, I accept some actual accomplished adolescent managers and leaders that I mentor. We are not aloof talking about the adeptness to bond and do things that are complex, but we are additionally talking about the adeptness to administer the bodies that weld, administer the technical, administer the financial, administer the accumulation change, administer the safety. This is our aing horizon.

Apart from training Nigerians, what added things are you accomplishing to accord to the development of bounded content?

Typically, aback you are talking about architecture Nigerian content, you will be speaking from two angles; one is bringing in accessories accommodation into the country, the added is developing the animal capacity. We accept done both. We now accept abundant accommodation to booty on altered kinds of projects.

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Can Nigeria accomplish 100 per cent bounded agreeable accord in oil and gas projects?

One hundred percent bounded agreeable may not be a adorable target. There is no country in the apple that has 100 per cent bounded content, not the UK, not the US.  For example, we still don’t accept a animate industry here, and as continued as we are still importing steel, we cannot allege of 100 per cent. There are appropriate steels, not aloof the raw pig adamant or the accepted steel, but you additionally accept appropriate alloys and coatings, bane aggressive alloys, fabricated of actual that artlessly don’t accept here. I don’t anticipate it is accessible for any country to be 100 per cent bounded agreeable compliant. That should not be our actual target.  While cogent advance has been fabricated on Nigeria content, there is still allowance to do more, abundant more. As oil prices antithesis and investments resume in the sector, whatever can be calmly and finer done in country allegation be done here, no stories. That is what we should be pursuing.

As an oil and gas expert, what do you anticipate of the oil breadth and the Nigerian abridgement in general?

I accept consistently said to bodies that Nigeria is a acreage of promise, and this is decidedly accurate of our oil and gas sector. We are currently bearing about 2 actor barrels of oil per day, and we accept been at that point for way too long. Our assembly to assets activity arrangement is too far from optimum. Our assembly should be at atomic 3 actor to 4 actor barrels per day, for us to be able to appulse the abridgement the way we should. 

That is what the administration of the country and the industry should be absorption on. How do we get to the point breadth we aish all the bottlenecks that impede production? We accept been adored by attributes with the affluence in the ground. Not bearing as abundant as we should be is absolutely our fault.

The primary acumen we are accountable is the way the industry works. The government is not aloof an buyer of the resource, demography the royalties and the taxes, but additionally an investor. That era has anesthetized and is no best necessary. Government is not able to allot the advance dollars appropriate by the industry to grow, because of aggressive needs of education, health, security, power, defence, and alike subsidy. This has impeded the advance of the industry and in a abnormal way, alike bargain its all-embracing account to the Nigerian people. What we allegation is how to get allotment to alleviate the abeyant of the industry above what government is able to afford. I accept to acclaim the accepted administration at the Ministry of Petroleum Assets and the Nigerian National Petroleum Corporation (NNPC) on authoritative behemothic strides in what we alarm another allotment in the industry. But added needs to be done with accretion coercion and we allegation to accept to advance that agenda, to get basic to appear into Nigeria. 

And of course, to accomplish that work, we allegation to accumulate Nigeria as an adorable advance destination for basic about the world. One of the allowances of globalisation is that basic has been freed to go to breadth it will accept its best impact. Basic wants to appear here, we aloof accept to accomplish it acceptable and comfortable.

A key allotment to that is arrangement sanctity.  Our industry and business leaders allegation accept what it agency to get into partnerships and relationships with adopted companies. Aback you defended allotment from an abandoned or a company, you allegation accept by all clauses in the active agreements. 

Investment is not a gift, the broker allegation antithesis the basic and accomplish the ambition allotment if you appetite them to appear aback and do some more. We accept to be accurate ally to become an advance destination. What we allegation to do to chargeless this industry up to accommodated its abeyant is absolutely actual simple. We don’t allegation to change any laws, we aloof allegation to change our mindset and disposition as a people, and we will get there.

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Dry-docking costs aircraft companies a lot of money because they are done alfresco the country, what are you accomplishing to about-face this?

It is not true. I accept apparent that adventure action about that all dry-docking is done alfresco the country. No, there is a bit of dry-docking done alfresco the country, but we accept dry-docking accommodation in Nigeria. Nigerdock has the better accommodation in Nigeria and we accept a graven berth that is 200 metres long. 

So, it agency that ships that are up to 200 metres can be dry-docked in Nigeria. We additionally accept a amphibian berth of about 150 metres. And there are abounding added acceptable docks in the country. And the costs are actual competitive. Bodies access us and analyze the bulk of dry-docking with Nigerdock and added West African destinations and over and over again, they accept us. We accept been able to acclimatize our bulk anatomy in a way that makes us a accomplice of choice.

A few months ago, aback the MD of Nigerian Ports Authority was here, Nigerdock talked about the cartel in oil and gas logistics, some accept this has abundantly afflicted the company, can you acquaint me what the bearings is now?

There are added companies in our amplitude that accept a actual ascendant position. What we accept apparent is that government has confused actively to access antagonism by bringing bottomward assertive structures that fabricated antagonism actual difficult. A lot of assignment has been done in accretion the antagonism on the accumulation and acumen capacity.  

The laws to acquiesce the antagonism were consistently there. But assertive agreements that had been reached, or perceived to accept been accomplished in the past, fabricated the audience anticipate that they had to do business in a accurate way. But there is a lot added ablaze that has been afford on that anatomy now. 

We are accepting businesses that we didn’t get earlier. This year alone, we accept recorded abounding firsts with our audience on projects that this time aftermost year were potentially inconceivable. We are now able to bear casework to our audience that we accept consistently been able to render, a lot added competitively than a lot of these added options they had. A lot easier to handle, to bear acumen and accumulation casework to them that they did not alike accept was possible, at prices they didn’t alike accept was possible. Yes, a lot of assignment has been done, a lot of advance has been fabricated in that area.

Could you amuse acquaint us some of the better projects that Nigerdock has auspiciously delivered?

In retrospect, we’ll say the Egina action and what we were able to body in abutment of the architecture of the FPSO. But then, we accept additionally formed for all our added clients. For Exxon Mobil, we congenital the Satellite Fields Development Phase 1 topsides, jackets, appurtenances; for Total, we did the Ofon jackets, bridges, topsides and the accommodation; for Chevron we did the boarded anorak for the Sonam Non-associated Gas bubbler platform. All these are ample artifact projects that we accept done over the years from 2006/2007 all the way up to 2016.

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Nigerdock afresh appear that it got an ISO certification. What are the business implications of this latest qualification?

I anticipate there was a slight confounding in the way it was reported. It was a re-certification. The acerbity of the accepted was changed, so we went for a re-certification at a new and college level. We accept consistently had our ISO certification, but we accept now got it at  college and newer standards.

Attracting investments into Nigeria accept a austere claiming because of the high-level accident involved, what can be done to advance FDI arrival in your industry?

There are investors and funds that are attractive to arrange basic to arising markets. Aback you attending at the admeasurement and abeyant of Nigeria as a market, our accustomed agreement as the best of Africa has already positioned us to allure capital. We allegation accept what needs to appear for this allure to be consummated.

Investors allegation affirmation that aback basic goes in, it can appear aback out. That aback you assurance a arrangement with them, the investors don’t accept to affront about unagreed changes, the laws don’t change, the taxes don’t change, annihilation that was bought in the name of the actor is appointed in the name of somebody else, the government or a party. There are no castigating taxes, no attendant levies and hidden charges; there is no change in the angle of the owner. Bodies allegation be able to accomplish affected judgments about how abundant they are advance and their accident abounding accepted returns.  And as continued as you account the all-around standards of arrangement adherence and basic control, there will be FDIs.

Who are your competitors in the industry, it appears Ladol is accomplishing the aforementioned affectionate of business that you do?

There is a delusion about Ladol. They are mainly a freeholder and chargeless breadth like Snake Island Chip Chargeless Zone, and do abutment abject services, which is breadth we compete. Nigerdock is a assorted casework operator. We accept a shipyard and accomplish a artifact yard, while they charter acreage to Samsung, who own and accomplish a artifact facility. We accept a training academy and action added services, which they don’t have.

However, in the breadth of acumen and supply, and chargeless zone, we action aggressive services. Aback I attending at Ladol, I adore them for what they do. I adore a lot of my competitors as well, so it is not as if it is abandoned the bodies I don’t attempt with that I admire. 

A lot of assignment has been done by Nigerian companies actuality able to accomplish at world-class levels. I am acutely appreciative of our abstruse entrepreneurs and professionals in the oil and gas industry and what they accept been able to achieve. I recognise the contributions of companies like Shell, Schlumberger, Total, Exxon Mobil, who through their abandonment practices, accept taken Nigerian aptitude and apparent them about the world. This is what we are benefitting from now. For this we are actual grateful.

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Give us a little accomplishments about you?

I advised Electrical Electronics Engineering at the celebrated University of Ife. At the time I accelerating in 1987, it had not yet been renamed Obafemi Awolowo University and some of us still assert on calling it the University of Ife. I aing the Oil industry anon afterwards graduation, alive with Schlumberger Wireline & Testing. Anon afterwards my aboriginal year, I was transferred to Italy, and afresh to Congo afore abiding to Nigeria four years later. I was in Nigeria for two years, after relocated to Europe afresh and then, to a host of added countries on assignments. I larboard Schlumberger to accompany Ocean and Oil Holdings, afresh Oando PLC’s bulk investor.

I was with Oando for 12 years, from 2006 to 2018. During this period, I about captivated abandoned two jobs, but because the aggregation acquired significantly, it looked like a lot of jobs. My aboriginal job was as the CEO of Oceans and Oil Holdings and the additional was as the CEO of Oando Exploration and Assembly Limited which after became Oando Energy Resources. I larboard Oando in March 2018 and aing Nigerdock as CEO in May.

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