Yenagoa—The Nigerian Content Development and Monitoring Board (NCDMB) and ERASKORP Nigeria Limited Thursday launched a 64,000 capacity blended lubricant plant in Bayelsa State.
It was reported that the plant, when fully operational, will contribute about 700 million liters yearly of lubricant consumption which accounts for about 20 percent of Africa’s total lubricants demand and ultimately add to Nigeria’s industrial development.
According to reports by NaijaLiveTV, the Minister of State for Petroleum Resources, Chief Timipre Sylva, Represented by the Executive Secretary of NCDMB, Engr. Simbi Wabote, while Speaking during the product launch at Yenagoa said the feat is significant in Nigeria’s push to deepen local content and reduce importation of products that could be produced locally.
Sylva explained that Nigeria’s consumption of engine oil per annum stands at 250 million liters which he said is even growing at more than 5% every year due to the addition of new vehicles and machines.
He commended ERASKON’s vision and added that the company has achieved a milestone in Bayelsa state given that before now there has been no lubricant plant in the state.
“The in-country blending capacity has remained constant at about 150 million liters, showing a shortage of about 100 million liters. 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.
“With the expanding economic activities in Bayelsa State and neighboring 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 a diligent review of the technical and commercial viability of the proposal, we are delighted at the journey so far on the project.
“Section 70(h) of the Nigerian Oil and 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.
Also speaking, Executive Vice Chairman of ERASKORP, Mr. Maxwell Oko, said the company has the capability and technology to venture into the production of other products outside of lubricants.
He explained that in the second phase of the plant development, they would be embarking on drilling and production chemicals as well as transformer and turbine oil.
“This project is a world-class 64,000 liters per day fully automated lubricants blending plant to be built on eight hectares out of the 50 hectares Industrial Park.
“On completion of construction, this facility will produce high-quality engine oils, transmission fluids, hydraulic fluids specialized four-wheel-drive products, engine coolants, and specialty products such as waxes,” he said.
Also speaking at the launching event, former President Goodluck Jonathan commended ERASKCORP Nigeria Limited for their presence in Bayelsa state.
He stated that the establishment of the company will contribute to the industrial status of the state and consequently improve the state’s internally generated revenue.
He noted that the company when operational would also generate more employment to the people especially the locals, stressing that the firm should employ more youths of the host community.
However, he advised that a lot still needs to be done to industrialize the state and create jobs for Bayelsans.
“We need to do something about local content. We must encourage other smaller industries. When we do that, we can create jobs for our people.
“This will add value to the local economy and with this project; I pray that more companies will come to Bayelsa State,” he said.
