By John Ikani
The Nigerian Content Development and Monitoring Board (NCDMB) and ERASKON Nigeria Limited have launched a 64,000 capacity blended lubricant plant in Bayelsa State.
ERASKON Nigeria Limited is an arm of the ERASKORP industrial and infrastructure conglomerate which includes Erasko Energy Limited and Eraskorp FPSL.
The ERASKON Lubricant and Chemical Blending plant is built on the 50 ERASKORP Industrial Manufacturing Complex (IMC) in Gbarain, Bayelsa State.
The plant is expected to produce 64,000 litres lubricants per day, as well as engine oils, transmission fluids, hydraulic fluids, specialised four-wheel-drive products, engine coolants, and specialty products, such as waxes.
Speaking during the product launch and groundbreaking for the plant, the Executive Secretary of the NCDMB, Engr. Simbi Wabote said the feat is another very important milestone in Nigeria’s push to deepen local content and reduce importation of products that could be produced locally.
Engr. Wabote who spoke on behalf of the NCDMB and the Minister of State for Petroleum Resources, Chief Timipre Sylva further explained the partnership with ERASKON was in line with the agency’s mandate to develop local capacity in the oil and gas sector.
He regretted that: “The in-country blending capacity has remained constant at about 150 million litres showing a shortage of about 100million litres. This shortfall is met by the importation of finished lube oil products with the attendant loss of revenue and job opportunities.
“There is currently no lubricant blending plant in Bayelsa State as 100% of lubricants consumed in the state are transported from other states mainly outside the South South region.”
The NCDMB boss went on to note that
“With the expanding economic activities in Bayelsa State and neighbouring states, ERASKON saw the opportunity to domicile, and ultimately domesticate, the production of lubricating oils and related products in the state.
“ERASKON submitted proposals to the board and after diligent review of the technical and commercial viability of the proposal, we are delighted at the journey so far on the project.”
He further asserted that: “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.”
While commending the vision of ERASKON management in setting up the lubricant plant, Engr. Wabote added that the facility will provide jobs for over 200 persons and over 800 indirectly.
He went on to demonstrate faith in ERASKON range of lubricants by directing the use of ERASKO oil and lubricants in all NCDMB vehicles.
On his part, the Executive Vice Chairman of ERASKORP Nigeria Limited, Maxwell Oko, noted that Nigeria consumes about 700 million litres of lubricants yearly, accounting for about 20 per cent of Africa’s total demand.
“The idea of building a lubricants blending plant follows our determination to contribute to Nigeria’s industrial development,” he said, stressing: “Lubricants are the lifeline of every engine.”
The ERASKORP boss hailed the partnership with NCDMB, adding: “Our confidence was further boosted by our partnership with the NCDMB, which, from their investment in us, demonstrated a clear commitment to our vision.
“Specifically, this 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 proper transfer of knowhow, and the best way to aid that process is to site companies where such knowhow can be put to use closer to them.
“We want all Bayelsans, Niger Deltans and indeed Nigerians to see this project as part of our own achievements in commerce and industry.”
Present at the ceremony was Former President Goodluck Jonathan, who performed the products launch.
He said: “Today is a happy day for me; that we are seeing this in Bayelsa. This project will attract other investments and increase the revenue of the state.”
The former President advised other youths in the state to emulate Oko by attracting investments to the state.
