NCDMB lauds ESSO on $23m logistics base at LADOL
By Ejire Folakunmi
The Nigerian Content Development and Monitoring Board (NCDMB) has commended ESSO Nigeria for the groundbreaking of its $23m permanent shorebase facility at the LADOL Deep Offshore Logistics Base, describing the project as a strong indication of Nigeria’s growing status as a global hub for oil and gas logistics.
ESSO Nigeria, an affiliate of ExxonMobil, is developing the facility, which will comprise an administrative building, warehouses and storage areas.
Speaking at the event held at the LADOL base in Lagos on Thursday, the Executive Secretary of NCDMB, Engr. Felix Omashola Ogbe, congratulated ESSO and LADOL, reaffirming the board’s commitment to supporting capacity development in Nigeria’s upstream supply chain.
Represented by his Senior Technical Adviser, Engr. Austin Uzoka, Ogbe praised LADOL’s consistency and long-standing contribution to the sector, noting that its growth reflects sustained engagement and forward-looking investments.
He placed the project within the context of global supply chain disruptions linked to instability in the Middle East, noting that rising logistics costs have affected economies worldwide.
According to him, LADOL’s emergence as a credible deep offshore logistics base provides a strategic response to vulnerabilities in Nigeria’s oil and gas supply chain.
“Today, we are pleased that Nigeria has an alternative,” he said, adding that developments such as the Dangote Refinery and LADOL expansion have strengthened the country’s logistics capacity compared to a decade ago.
The NCDMB boss urged ESSO to adopt a front-end-loaded payment structure in its contracts with LADOL to ensure timely project delivery without reliance on high-interest bank loans.
He noted that delayed payments have remained a challenge for local suppliers, often affecting project timelines and increasing financing costs.
“I would like to encourage you to pay LADOL more. Ensure payments are front-end-loaded so the project can be completed on time without resorting to expensive borrowing,” he said.
He reiterated that efficient supply chains are critical to national development, assuring that NCDMB would continue to strengthen partnerships with industry players to build local capacity.
Ogbe also described ESSO as a deliberate and strategic operator, expressing confidence that the project would be delivered as planned.
He urged the company to remain committed to utilising Nigerian expertise in executing the project.
Earlier, the Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Mr Jagir Baxi, said the project represents a major 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 capabilities.
According to him, the project will be executed largely by Nigerian companies, supporting job creation and the development of local expertise in engineering, construction and commissioning.
The event was attended by representatives of the Bank of Industry, ESSO Nigeria, LADOL management led by Dr Amy Jadesimi, as well as officials of the Nigeria Customs Service, the Nigeria Immigration Service and other government agencies.