Sopuruchi Onwuka

The Nigerian Content Development and Monitoring Board (NCDMB) has reaffirmed its commitment to deepen collaboration with LADOL and Esso Exploration and Production Nigeria Limited (EEPNL) to develop facilities and capabilities that will position Nigeria as a key hub for global oil and gas logistics.

The declaration came during the groundbreaking of Esso’s permanent facility at the LADOL Deep Offshore Logistics Base, a project valued at $23 million (₦32.2 billion).

The shorebase will feature an administrative building, warehouses, and other storage areas. Esso Nigeria, an affiliate of ExxonMobil, is executing the project as part of its long-term investment in Nigeria’s oil and gas sector.

Speaking at the ceremony, NCDMB Executive Secretary Engr Felix Omashola Ogbe, represented by his Senior Technical Adviser Engr Austin Uzoka, described the groundbreaking as a clear demonstration that Nigeria has become an important international hub for oil and gas operations. He highlighted LADOL’s consistency, tenacity, and forward-looking approach as key factors in its success, noting that these qualities have been evident over years of collaboration with the facility.

Ogbe situated the project within the broader context of the ongoing global logistics crisis, triggered by instability in the Middle East, which has disrupted supply chains and driven up costs from Singapore to Lagos, as well as across markets in the United States. He emphasized that LADOL’s emergence as a credible deep offshore base represents a direct response to vulnerabilities in Nigeria’s oil and gas supply chain.

“Today, we are pleased that Nigeria has an alternative,” Ogbe said, drawing parallels with the completion of the Dangote Refinery and noting that the country’s supply chain is measurably stronger than it was a decade ago.

The NCDMB chief also urged Esso to adopt a front-end-loaded payment structure in its contracts with LADOL, explaining that timely funding would enable the facility to complete the project without resorting to high-interest bank loans. He stressed that cash flow constraints have become a recurring challenge for Nigerian suppliers, many of whom approach the Board for support when operator payment timelines do not align with project delivery requirements.

“I would like to encourage you to pay LADOL more upfront,” Ogbe said. “Make sure payments are front-loaded so they have the funds to finish on time without relying on banks and paying high interest rates.”

He further emphasized that supply chains form the bedrock of national development, and reaffirmed NCDMB’s commitment to working with industry partners to build capacity within Nigeria’s upstream oil and gas sector. He praised Esso Nigeria as a measured and deliberate operator that moves decisively once committed, expressing confidence that the groundbreaking marks the start of a project that will be delivered on schedule.

Jagir Baxi, Chairman and Managing Director of ExxonMobil affiliates in Nigeria, highlighted the project as a milestone in Esso Nigeria’s 70-year partnership with the country. He said the facility underscores the company’s commitment to enhancing Nigeria’s deepwater offshore operational capabilities and to relying predominantly on Nigerian companies for construction, engineering, and commissioning, thereby supporting local job creation and skills development.

The ceremony was attended by representatives of the Bank of Industry, LADOL management led by Dr. Amy Jadesimi, Esso Nigeria leadership, as well as officials from the Nigeria Customs Service, Nigeria Immigration Service, and other relevant government agencies, highlighting the project’s significance for both the industry and national development.