50 Years after, NNPC Begins Crude Oil Lifting

1 Comment » May 26th, 2008 posted by // Categories: Energy Development Project



GOD BLESS NIGERIA!!!!!
We cannot wait to drive to an NNPC gas stations in USA to fill-up.

Quote:

50 Years after, NNPC Begins Crude Oil Lifting
By Chika Amanze-Nwachuku, 05.22.2008 Thisday Online

After five decades of its involvement in crude oil and gas exploration without involvement in crude oil transportation, the Nigerian National Petroleum Corpora-tion (NNPC) has begun crude oil lifting through NIDAS International Enterprise Ltd.
Already, the company has shipped its first cargo of crude from Nigeria to Brofjorden, Sweden. The NNPC, had in December 2006 signed a joint venture agreement with Daewoo Ship-building and Marine Engineering (DSME) of South Korea, to establish a world class shipping company, for crude oil transportation.
An initial capital of $10 million was then released for the joint venture business, in which NNPC was to acquire a controlling equity interest of 51 per cent, while DSME was to control 49 per cent.
However, in February last year, the deal was sealed as NNPC, DSME and another company, EXMAR collaborated to establish NIDAS International Enterprises Ltd.
According to a statement yesterday by the corporation’s spokesmen, Dr. Levi Ajuonuma, the establishment of NIDAS was part of the NNPC’s commitment to becoming a truly integrated oil and gas company involved in all aspects of the petroleum business, coupled with government’s decision to change the present situation, where crude oil transportation in Nigeria has been dominated by foreign companies since 1958.
Besides, he noted that the initiative would boost capacity, revenue generation as well as employment opportunities in the country, adding that the participation of the state-owned company in the“transportation of crude oil and allied products would undoubtedly impact positively on the petroleum and shipping sectors in particular and the Nigerian economy in general.
“The ultimate objective of NIDAS International Enterprises Limited is to become the dominant shippingcompany responsible for the transportation of crude oil, LPG and other petroleum products from Nigeriancluding shipbuilding and maintenance.
“This will change the present situation where crude oil transportation in Nigeria has been dominated by foreign companies- since 1958.
“The establishment of NIDAS as a crude oil transportation vehicle is part of a deliberate policy of government to create a sustainable channel of revenues for NNPC.”
“The Nigerian government is committed to NigerianContent Development and under this policy foreigncompanies are encouraged to engage the services ofindigenous companies as well as utilize locallyavailable materials in running their businesses.Therefore, crude oil traders should see it as anopportunity to support the Nigerian economy. It isexpected that Nigerian crude oil lifters will, in thespirit of the mutual co-operation and cordial businessrelationship with NNPC, support the new companythrough the assignment of crude oil freight”, he said.When the joint venture was signed in 2006, the partieshad agreed to establish an offshore office, whichwould be responsible for vessel operations andlogistics. The first crude oil cargo was exportedfrom Nigeria to Europe in 1958. The NNPC since thenhad no business in crude oil transportation as it onlysells crude to traders, who in turn engage foreigncompanies in the lifting. With this development,traders are expected to lift crude through NIDAS.

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One Response to “50 Years after, NNPC Begins Crude Oil Lifting”

  1. Alet Viegas says:

    Thanks for the effort you took to expand upon this post so thoroughly. I look forward to future posts.
    There are various sea vessels involved in shipping to jamaica. It may include box boats or container ships, bulk carriers, tankers, ferries, cable layers, dredgers and barges.

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