The 210,000 MT capacity terminal is purpose built in sub-Saharan Africa dispatching over 500 trucks per day in what is primed to revolutionize petroleum products distribution in Nigeria.
This investment is a precursor and in synergy with Oando’s intent to develop a Greenfield refinery project in the same site. Already, a complete four month detailed bankable viability study for an refinery has been completed.
Commenting on the project, Ayo Ajose-Adeogun, Oando Refinery and Terminals’ chief executive officer said, This project will have a direct impact on the downstream sector as it will radically reduce the traffic to Apapa port, which was originally built to handle only 10% of Nigeria’s energy import requirement as against the 90% it does today. It will also increase Major Marketers’ throughput by bridging the huge supply gap.
The Lekki Terminal Project will have a Single Point Mooring (SPM) facility located about 7km offshore, which will support the berthing of 80,000 deadweight tonnage (dwt) vessels for the first time in West Africa, thereby significantly providing unprecedented cost efficiencies, he added.
Also commenting, Wale Tinubu, Oando group chief executive said, This project will be the benchmark for product reception terminals in sub-Saharan Africa that will once again attest to our superior execution capabilities. We project strong early cash flow that will provide immediate shareholder value and the financial platform for the development of our ultra-modern refinery in the same location.
Oando has it won the right of way (ROW) approval from the Akwa Ibom state government for the building its 128 kilometer South- East gas pipeline project from Ukanafun in the state to Mfamosing, Cross River State. The ROW within the Akwa Ibom state boundary is about 80 kilometers out of the total 128 kilometers for the project.
Already, East Horizon Gas Company, the subsidiary of Oando handling the project, has attained more than 15 kilometers of pipeline construction within the Cross River state boundary. In November, 2008, the Cross River state government has given approval for the ROW after which East Horizon instantly started work.
