Oando Terminals Ltd. on Wednesday said it had started constructing a jetty in Apapa to provide a more efficient platform to deliver petroleum products to oil marketers.
The company said in a statement in Lagos issued by its spokesman, Johnson Azuara-Kelvin, that the jetty would serve oil marketers currently using Moman Jetty.
It said that work on the facility was nearing completion, the News Agency of Nigeria (NAN) reports.
The statement said that the jetty would have a half-kilometre sub-sea pipeline and a 16-inch three-kilometre onshore pipe to deliver more than three million tonnes of petroleum products a year.
It said that the facility had been identified as “an immensely valuable asset in the Oando stable as it will allow 45,000 DWT vessels to berth and discharge their products without littering and demurrage”.
According to the statement, the cost saving across the industry will be in excess of 120 million dollars (about N18.6 billion) per annum.
“Once operational, the sub-sea marina jetty will contribute significantly to Oando’s overall net profit as a result of tolling fees and substantial cost savings on imports and demurrage.
“It will also ensure an increase in the utilisation of existing storage space and provide significant reduction of constant delays caused by infrastructure constraints in the Lagos area,’’ the statement.
It said that in spite of reduction in importation, Oando remained the largest indigenous supply and trading player in sub-Saharan Africa.
The statement said that the company had 15 per cent market share in importation of petrol.
It said that Oando had consistently explored ways to further increase its margins and add value to the downstream sector in the oil industry.
“The completion of the jetty will be a welcome game-changer as it will vastly improve distribution efficiency and lead to higher margin volumes with an estimated 36 million dollars (about N5.58bn) expected revenue annually”.
source: http://businessdayonline.com/
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