OVH Energy Launches West Africa’s First Ever Private Midstream Jetty

Oil & Gas
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Wednesday, November 08, 2017 9.00AM / Oando PLC  

ASPM Limited, a subsidiary of OVH Energy Limited, achieved a ground-breaking milestone as it launched its Lagos Midstream Jetty (LMJ) located at the Lagos Apapa Harbour. The Lagos Midstream Jetty is West Africa’s first privately owned mid-stream jetty, conceived by Oando PLC to increase the delivery capacity and offloading efficiency of petroleum products into marketers’ storage facilities in Apapa Lagos. 


The Lagos Midstream Jetty is expected to alleviate the perennial infrastructural hiccups experienced in Apapa, eliminating the lightering and demurrage charges currently being incurred by petroleum marketers by NGN8.3 billion ($23m) and NGN9.8 billion ($27m) respectively. Additionally, the Jetty will reduce discharge time from 21 to 3 days, increasing product availability. 


With a draft of 13.5m, Length Overall (LOA) of 210m and a capacity to receive 45,000 DWT vessels (deadweight tonne), the Lagos Midstream Jetty will discharge at up to 800 m3 (cubic meters) of petroleum products per hour. The Jetty will operate 24 hours a day to supply products into storage facilities situated within the Apapa axis, via a 3km submarine pipeline network linked directly with up to 200,000MT storage belonging to major and independent marketers in Nigeria. LMJ which is configured to receive all white products namely petrol, diesel and kerosene, consists of a simple horizontal platform, five (5) berthing dolphins, and four (4) mooring points. 


In comparison to available jetties, the Lagos Midstream Jetty has the capacity to receive larger vessels of up to 45,000 DWT in one lot thus reducing the current necessity of bringing in smaller volumes of petroleum products in several batches. This will result in significant cost savings on lightering and generate economies of scale advantages for marketers. 


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Commenting at the launch event Chairman OVH Energy, Mr Wale Tinubu said: “The Lagos Midstream Jetty was conceived as an innovative industry solution to the perennial challenges marketers faced in the importation of petroleum products. Over the past 30 years, marketers have spent approximately NGN1.6 Trillion ($4.5 billion) on lightering, with 90% of this spend flowing out of the country. Today we have delivered a first class piece of engineering that meets global standards, is the first of its kind in sub-Saharan Africa and will be of invaluable benefit to the industry and nation at large. I must thank our regulators, bankers and contractors who believed in us from the start. It is a proud moment for Oando PLC who conceived the idea and OVH who have taken up this mantle. From conception to realisation, the idea of the Lagos  Midstream Jetty is now a reality and is indeed another infrastructural success for us, our nation and the continent.’’ 


In his remarks at the event, the Group Managing Director of the Nigerian National Petroleum Corporation Dr Maikanti Baru said “I am honoured to be a part of the commissioning of this novel infrastructure, the LagosMidstream Jetty, West Africa’s first privately owned midstream jetty. I would like tocommend Oando PLC for birthing the idea and seeing it through to fruition”. 


Baru further lauded the drive and efforts of Oando PLC, OVH Energy Marketing and Apapa SPM Limited towards improving petroleum efficiency in Nigeria. 


The NNPC GMD endorsed the project and proudly commited to maximum utilisation of the Lagos Midstream Jetty, for the growth of the Nigerian economy. 


Commenting further on the facility, the General Manager of ASPM Limited, a subsidiary OVH Energy, Mr. Deji Osikoya, stated “The Lagos Midstream Jetty is an innovative infrastructure investment designed to radically transform the efficiency of Nigeria’s downstream landscape and boost Nigerian’s petroleum downstream economics. We expect the Jetty to become an extremely valuable and viable portfolio especially for marketers, reducing delays caused by infrastructural limitations in Lagos, thus improving marketers’ service delivery and profitability and reducing the financial drain on the nation’s resources.” 


The Jetty is equipped with a gangway tower to facilitate vessel discharge operations and an onshore control station at Alapata, Apapa which serves as the central control center for its off-shore and on-shore operational activities fully equipped with an automated process control system. 


Speaking further Osikoya “The Lagos Midstream Jetty (LMJ) is fully operational, having berthed 10 vessels and discharged products totaling 255,000 metric tonnes of cargo demonstrating its potential as a functionally efficient and safe facility. With a monthly volume capacity of 240,000metric tonnes, or 240,000,000 litres, the Lagos Midstream Jetty is set to substantially boost supply of petroleum product into Nigeria, and contribute an estimated NGN13.1 billion ($36 million) cost reduction in product imports and associated transactions.” 


The idea conceived by Oando PLC, arose from the need to increase the delivery capacity and offloading efficiency of petroleum products into marketers’ storage facilities in Apapa, Lagos. Oando successfully conceptualized, executed and completed the project in 2016 before handing over to OVH Energy after the divestment of Oando Downstream. OVH Energy is a consortium of Oando PLC Nigeria’s leading oil and gas company, Vitol Group, the world’s largest trader of energy commodities and Helios Investment Partners,the premier Africa-focused private equity firm. OVH Energy has over 350 service stations and over 500 industrial customers across Nigeria. 


The Lagos Midstream Jetty project was commissioned by the Honourable Minister for Transportation Rt.Hon Rotimi Amaechi.


Oando, with a track record of successful Public Private Partnerships (PPPs) initiatives, continues to set the pace for industry peers. Through its mid-stream vehicle, Oando Gas & Power (OGP), recently divested to Helios Investment Partners and rebranded to Axxela, the company developed Nigeria’s largest gas pipeline network and championed the development and delivery of critical Independent Power Plants (IPPs) in key industrial and residential hubs. 

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