The Federal Government has set up an Inter-ministerial Committee to assess the $600 million (N228 billion) Snake Island (Oil) Fabrication Yard in Lagos and recommend ways to revive it.
Member of the Board of the Nigerian National Petroleum Corporation (NNPC), Senator Magnus Abe disclosed this on Saturday, March 27, during an inspection of the facility.
The building of the oil fabrication yard in Lagos was stalled since 2015 after a force majeure declared by an international oil company operating in the country.
Abe further said by 2015 when the company handling the fabrication yard project declared force majeure, Kaztec Engineering had already spent more than $600 million – imported a lot of materials and was employing over 3,000 direct workers. But when the force majeure was declared, all those people lost their jobs.”
According to Senator Abe, who is also the Chairman of the Inter-ministerial Committee, the facility was projected to save the country and also help generate income of about $33 billion over a 10-year period.
He described the current state of the facility as “a national tragedy in so many ways because not only is the economy very negatively impacted. It is quite disheartening to see that there are a lot of things here that could help this company save millions of dollars that are laying waste”.
Senator Abe expressed gratitude to the President for setting up the Committee, adding that it shows the President is in touch with the reality of what is happening in the economy and doing everything to see that the Nigerian economy is not negatively impacted unduly by current happenings.
In his reaction, the Director, Engineering at Kaztec Engineering Limited, Mr Mike Simpson, remarked that the facility was being built to be the first fully-owned indigenous fabrication yard in Nigeria.
He said the first phase of the project comprising workshops, warehouse, laydown areas, erection area and 4,000T load-out quay had been completed.