NCDMB Partners Firm On Lubricants Plant

The Nigerian Content Development and Monitoring Board, NCDMB, has formed an alliance with an indigenous lubricant firm, Eraskon Nigeria Limited, to set up a 64,000 litres per day capacity lubricant  and chemical blending plant in Gbarain, Yenegoa, the Bayelsa State capital.
The 64,000 litres of lubricants per day capacity plant is expected to produce engine oils, transmission fluids, specialised four-wheel-drive products, engine coolants and specialty products such as waxes and industrial chemicals such as drilling and production chemicals as well as transformer and turbine oils and household products such as detergents and aerosols at take off.
The Minister of State for Petroleum, Chief Timipre Sylva, who performed the groundbreaking ceremony, noted that the Federal Government was committed to promoting local content and reducing importation of products which could be locally  produced.
Sylva, who was represented by the Executive Secretary of the NCDMB, Mr Simbi Wabote, stated that the Board was supporting Eraskon Nigeria Limited with equity capital for the establishment of the plant, which will created 200 direct jobs.
According to him, “Section 70(h) of the Nigerian Oil & Gas Industry Content Development (NOGICD) Act of 2010 mandates the Board to assist local contractors and Nigerian companies to develop their capabilities and capacities to further the attainment of the goal of developing Nigerian Content in the Nigerian oil and gas industry”.
He observed that Nigeria currently consumes about 250 million liters of engine oils per annum, saying that this consumption increases at more than 5percent every year following the addition of new vehicles and machineries on the scene.
He expressed regret that the country’s blending capacity has been 150million liters per annum, showing a shortage of about 100 million liters, noting that the deficit was met by importation of finished lube products, with the attendant loss of revenue and job opportunities.
Earlier, the Executive Vice Chairman of Eraskon Group, Mr. Maxwell  Oko, explained that Nigeria accounts for about 20 percent of Africa’s total demand for lubricants, while commending NCDMB for the partnership.
He said, “The idea of building a lubricant blending plant follows our determination to contribute to Nigeria’s industrial development.
“Lubricants are the lifeline of every engine. Our confidence was further boosted by our partnership with the Nigerian Content Development and Monitoring Board, which demonstrated a clear commitment to our vision through investment.
”Specifically, this lubricants blending project aims at providing employment, developing local manufacturing capacity and increasing local content participation in the industry.
“We believe our people can grow better with proper transfer of knowhow and the best way to aid that process is to site companies where such knowhow can be put to use closer to them.”

By: Tonye Nria-Dappa