ESSO’s $23m LADOL investment boosts Nigeria’s Offshore logistics capacity- NCDMB

By Ambrose Nnaji

The Nigerian Content Development and Monitoring Board (NCDMB) has commended ESSO Nigeria for the groundbreaking of its $23 million permanent shorebase facility at the LADOL Deep Offshore Logistics Base.

The Board described the project as a strong signal of Nigeria’s growing status as a strategic hub for global oil and gas logistics.

The facility, valued at $23 million, will feature an administrative complex, warehouses, and storage infrastructure aimed at strengthening offshore operations and supply chain efficiency.

Speaking at the groundbreaking ceremony in Lagos, the Executive Secretary of NCDMB, Felix Omatsola Ogbe, congratulated ESSO Nigeria and LADOL, reaffirming the Board’s commitment to deepening local capacity in the upstream oil and gas value chain.

Represented by his Senior Technical Adviser, Austin Uzoka, Ogbe praised LADOL’s consistency and long-term vision, noting that its evolution into a credible deep offshore base reflects years of strategic development.

He placed the project within the context of ongoing global supply chain disruptions, particularly those linked to geopolitical instability in the Middle East, which have driven up logistics costs across key markets.

According to him, LADOL’s expansion provides Nigeria with a viable alternative logistics hub, strengthening the country’s resilience. He likened the development to transformative projects such as the Dangote Refinery, noting that Nigeria’s supply chain capacity has significantly improved over the past decade.

Ogbe also urged ESSO Nigeria to adopt a front-end-loaded payment structure in its contracts with LADOL, stressing that improved cash flow would enable timely project delivery without reliance on high-interest bank loans.

He highlighted persistent liquidity challenges faced by local suppliers, often caused by delayed payments from operators, which continue to hinder project execution across the industry.

“Timely funding is critical. Front-loading payments will allow contractors to deliver efficiently without resorting to expensive financing,” he said.

He emphasised that robust supply chains are central to national development and assured continued collaboration between NCDMB, ESSO Nigeria, and LADOL to strengthen in-country capabilities.

Ogbe further described ESSO Nigeria as a disciplined operator, expressing confidence that the project would be delivered on schedule, while urging the company to maximise the use of Nigerian expertise throughout execution.

Earlier, the Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, said the project represents a significant milestone in ESSO Nigeria’s over 70-year partnership with the country.

He noted that the investment underscores the company’s commitment to enhancing Nigeria’s deepwater offshore operations.

Baxi added that the facility will be largely built by Nigerian firms, creating jobs and boosting local expertise in engineering, construction, and commissioning.

The event was attended by representatives of the Bank of Industry, management of LADOL led by Amy Jadesimi, as well as officials from the Nigeria Customs Service, Nigeria Immigration Service, and other government agencies.