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| The Egina floating production, storage and offloading vessel docked at the Ladol Free Trade Zone Port in Lagos. Photographer: George Osodi/Bloomberg |
By Paul Wallace, Tope Alake,
and Anthony Sguazzin
and Anthony Sguazzin
Company May Raise Capital Within Two
Years, MD Jadesimi say
Years, MD Jadesimi say
Ladol hosting Total’s Egina rig
completion-works by Samsung
completion-works by Samsung
Ladol,
a logistics hub for the offshore oil industry in Lagos, Nigeria, is mulling a
stock-market listing and corporate bonds to expand its facilities and attract
more business from major production companies.
a logistics hub for the offshore oil industry in Lagos, Nigeria, is mulling a
stock-market listing and corporate bonds to expand its facilities and attract
more business from major production companies.
Family-owned Ladol, where Samsung Heavy
Industries Co. Ltd is completing the construction of one of the world’s
largest floating rigs for Total SA, will look to raise capital over the
next two years, according to its managing director.
Industries Co. Ltd is completing the construction of one of the world’s
largest floating rigs for Total SA, will look to raise capital over the
next two years, according to its managing director.
“We are very open” to tapping public equity
and debt markets, Amy Jadesimi said in an interview on May 22, without
disclosing how much she wanted to issue. “The Nigerian Stock Exchange has done
a lot to restructure in the last few years to make themselves attractive to a
company like ours, so we will definitely consider that. We will consider
listing on the bond market too.”
and debt markets, Amy Jadesimi said in an interview on May 22, without
disclosing how much she wanted to issue. “The Nigerian Stock Exchange has done
a lot to restructure in the last few years to make themselves attractive to a
company like ours, so we will definitely consider that. We will consider
listing on the bond market too.”
Ladol aims to build
more infrastructure on its roughly 100-hectare (247-acre) free trade zone on an
island across Apapa, Lagos’s main port. That includes roads, quay walls and
fabrication equipment, according to Jadesimi, a trained doctor and Stanford
graduate who used to work on mergers and acquisitions at Goldman Sachs Group
Inc.
more infrastructure on its roughly 100-hectare (247-acre) free trade zone on an
island across Apapa, Lagos’s main port. That includes roads, quay walls and
fabrication equipment, according to Jadesimi, a trained doctor and Stanford
graduate who used to work on mergers and acquisitions at Goldman Sachs Group
Inc.
High-Value Project
Total’s $4 billion
Egina floating production, storage and offloading vessel is docked at Ladol.
Construction of the FPSO, which is designed to hold 2.3 million barrels of oil,
began in South Korea, before it was shipped to Ladol in January for the final
stages. It is scheduled to set sail in July for the Egina deepwater field,
which is about 80 miles off the Niger River delta coastline and will produce
200,000 barrels a day.
Egina floating production, storage and offloading vessel is docked at Ladol.
Construction of the FPSO, which is designed to hold 2.3 million barrels of oil,
began in South Korea, before it was shipped to Ladol in January for the final
stages. It is scheduled to set sail in July for the Egina deepwater field,
which is about 80 miles off the Niger River delta coastline and will produce
200,000 barrels a day.
The project is seen
as a test of the Nigerian government’s drive to build an oil-services industry
and get more international companies to use local support-firms.
as a test of the Nigerian government’s drive to build an oil-services industry
and get more international companies to use local support-firms.
Previously, Samsung
and other shipbuilders would have done all the work outside of Nigeria,
Jadesimi said from her Lagos office.
and other shipbuilders would have done all the work outside of Nigeria,
Jadesimi said from her Lagos office.
“This is a massive
industrial project,” she said. “The impact this has in terms of Nigeria being
seen as a place where you can carry out challenging, high-value projects is
really important. It’s critical to show we can do it.”
industrial project,” she said. “The impact this has in terms of Nigeria being
seen as a place where you can carry out challenging, high-value projects is
really important. It’s critical to show we can do it.”
Jadesimi, whose family and other
investors have put about $500 million into Ladol in the past decade, said the
firm would probably seek to work on two more upcoming FPSO projects: those for
the Bonga South West and Zabazaba-Etan fields, both off the coast of
Nigeria. Royal Dutch Shell is set to make a final investment decision on
the former this year, while Eni SpA will develop the latter. Each FPSO
will pump about 150,000 barrels daily, almost one-tenth of Nigeria’s current
crude production of 1.8 million barrels a day.
investors have put about $500 million into Ladol in the past decade, said the
firm would probably seek to work on two more upcoming FPSO projects: those for
the Bonga South West and Zabazaba-Etan fields, both off the coast of
Nigeria. Royal Dutch Shell is set to make a final investment decision on
the former this year, while Eni SpA will develop the latter. Each FPSO
will pump about 150,000 barrels daily, almost one-tenth of Nigeria’s current
crude production of 1.8 million barrels a day.
“We are waiting and
hoping in the next month or two to have a clearer indication of what is going
to happen with those,” Jadesimi said. “If they are delayed, we can look for
smaller projects. If not, we will probably be tied up with them straight away.”
hoping in the next month or two to have a clearer indication of what is going
to happen with those,” Jadesimi said. “If they are delayed, we can look for
smaller projects. If not, we will probably be tied up with them straight away.”
Culled from Bloomberg.com
