In a bid to bolster Nigerian investment in the oil and gas sector and the blue economy, the Federal Government, under the leadership of President Bola Tinubu, has pledged its support for the revival of Kaztec Engineering Limited’s $1 billion oil and gas fabrication yard at Snake Island, Ilashe, Lagos State.
The Minister of Marine and Blue Economy, Mr. Gboyega Oyetola, gave the assurance during an inspection and on-the-spot assessment of the fabrication yard, which has remained dormant for eight years due to force majeure declared by Addax Petroleum, the project’s technical partner.
The visit by Oyetola follows a similar inspection conducted by the Senate Committee on Petroleum (Upstream), led by Chairman Senator Eteng Williams, as part of the legislative body’s commitment to addressing the challenges surrounding the project’s shutdown and finding solutions for its revival to strengthen the Nigerian economy.
Background of the Project
The fabrication yard, also referred to as the Antan Project, was initiated in 2012 and had reached 70% completion before its suspension in 2015. With an estimated cost of $1 billion, the project aimed to support the drilling of over 19 million barrels of Nigerian crude oil and establish a one-stop-shop for:
•Offshore platform fabrication,
•Large offshore module construction,
•Floating Production, Storage, and Offloading (FPSO) refurbishment,
•New build jackets, pipe mills, and coating facilities,
•Logistics, supply base operations, and skills development.
So far, over $600 million has been invested into the project, which was projected to generate more than $33 billion in revenues and foreign exchange savings for the Federal Government over 10 years. It was also expected to create over 3,000 direct jobs and 10,000 indirect employment opportunities for Nigerians.
Impact of Force Majeure
The yard has remained dormant since 2015 after Addax Petroleum declared force majeure due to unresolved tax and audit issues with the Federal Government. This halt caused significant setbacks for Kaztec Engineering, limiting the anticipated economic and developmental benefits of the project.
Government’s Assurance and Support
During his visit, Minister Oyetola expressed the government’s renewed commitment to supporting Kaztec Engineering in resuscitating the fabrication yard. He acknowledged the company’s massive investments and unwavering commitment despite the challenges, assuring stakeholders that the Tinubu administration will address the bottlenecks hindering the project.
“I want to assure you that we are going to support you in this project. You’ve spent so much and invested so much as a Nigerian. That’s the kind of thing we want to see happening in our country. Whatever bottlenecks exist will be reviewed holistically to ensure your dream of completing this project becomes a reality,” said Oyetola.
He emphasized the administration’s focus on job creation and the blue economy, noting that the project aligns with the government’s “Renewed Hope Agenda.” The minister further commended Kaztec’s resilience in continuing to seek solutions despite the eight-year delay.
Chairman’s Remarks
Kaztec Engineering’s Chairman, Chief Emeka Offor, expressed optimism about the renewed governmental interest in the project. He stated:
“I’m happy that the Honourable Minister is here to see things for himself. This project was halted due to a force majeure caused by Addax and the Nigerian government over tax issues, which we had no part in.”
Offor reaffirmed the company’s commitment to the project and the economic benefits it promises. He noted that Kaztec’s operations would save Nigeria significant foreign exchange by reducing the need to import offshore fabrication assets.
“What we’ve done here is designed to conserve foreign exchange by building and loading assets locally. When International Oil Companies (IOCs) import such assets, it takes 45–60 days of shipping time, costing $1–2 million daily depending on the size of the equipment. This wastage affects us negatively. The model we’ve developed here eliminates such inefficiencies,” Offor explained.
He highlighted that the project would not only create thousands of jobs but also contribute significantly to Nigeria’s foreign exchange earnings.
Government’s Commitment
Minister Oyetola reiterated the administration’s dedication to ensuring investments like Kaztec’s succeed. He described the project as a “win-win” for both the government and the private sector, urging all stakeholders to collaborate in realizing its objectives.
“This project aligns perfectly with our agenda of job creation and economic revitalization. With this kind of investment, we can take thousands of youths off the streets and provide opportunities for a better future,” the minister concluded.
The renewed focus on reviving the fabrication yard underscores the Federal Government’s intention to strengthen the oil and gas sector while positioning Nigeria as a global hub for offshore engineering and fabrication.
