There are indications that the capacity utilisation of oil and gas dockyards in Nigeria has dropped to 15 per cent as a result of relatively low oil prices in the global oil market.
This appears to be very significant, when the over 60 per cent capacity utilisation of the dockyards in 2014, is considered.
The oil and gas dockyards, including Niger Dock, Dormanlong, Kaztec Engineering, were established at various times to provide fabrication and other services to oil and gas companies, thus conserving foreign exchange, building indigenous capacity as well as promoting technological advancement in the nation.
In an interview with newsmen, Chairman, Petroleum Technology Association of Nigeria (PETAN), Mr. Nicholas Odinuwe, who confirmed the drop in capacity utilisation, said, “The capacity utilisation of the dockyards has dropped to about 15 per cent in the past few years, due mainly to low oil prices, drop in foreign exchange generation, review of contracts and low patronage of the dockyards.”
However, the Department of Petroleum Resources (DPR) has raised concerns over moribund oil and gas facilities across the country.
Speaking during a visit to Kaztec Engineering Limited, located at Ilase Village, Snake Island, Lagos State, Director of DPR, Sarki Auwalu, said, “The industry depends on facilities like this to actualise its investment because it is like a support system for the oil and gas sector.
“Our visit is to the edifice that we licensed and it is dormant. But we are going to make it active because we see it as an opportunity to grow the oil and gas industry.
“We have seen an opportunity we can use to support our gas utilisation, penetration and expansion programme. We have issued several licenses for modular refineries that need fabrications. We cannot allow this kind of facility to remain under-utilised.”
Also worried about the situation, the government has set up an Inter-Ministerial Committee, to review and propose measures targeted at activating the dormant Kaztec Engineering Limited yard in Lagos.