By Peace Udugba -The daily torch media
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 in Lagos, describing the development as a strong indication that Nigeria is emerging as a prime hub for global oil and gas logistics.
ESSO Nigeria, an affiliate of ExxonMobil, said the shorebase project will feature an administrative building, warehouses, and other storage facilities designed to enhance offshore operations.
Speaking at the groundbreaking ceremony held on Thursday at the LADOL base in Lagos, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, congratulated ESSO and LADOL on the initiative. He reaffirmed the Board’s commitment to collaborating with industry stakeholders to deepen capacity development in Nigeria’s upstream supply chain.
Ogbe praised LADOL’s consistency, resilience, and forward-looking approach, noting that these qualities have been evident through years of engagement with the facility.
He also placed the project within the context of the ongoing global logistics challenges, partly driven by geopolitical instability in the Middle East. According to him, the disruptions have increased supply chain costs across major global markets, underscoring the need for stronger local capacity.
Represented by his Senior Technical Adviser, Engr. Austin Uzoka, the NCDMB boss said LADOL’s emergence as a credible deep offshore base provides a practical response to vulnerabilities in Nigeria’s oil and gas logistics ecosystem.
“Today, we are pleased that Nigeria has an alternative,” he said, drawing parallels between the development of LADOL and major national projects such as the Dangote Refinery. He added that Nigeria’s supply chain capacity is significantly stronger than it was a decade ago.
Ogbe urged ESSO Nigeria to adopt a front-end-loaded payment structure in its contracts with LADOL to ensure smooth project execution. He explained that timely funding would help avoid reliance on bank loans with high interest rates.
He noted that cash flow challenges remain a recurring issue for local suppliers, many of whom approach the Board for financial support due to delayed payments from operators.
“I would like to encourage you to pay LADOL more and ensure it is front-end-loaded, so they can complete the project on time without resorting to expensive bank financing,” he said.
He stressed that efficient supply chains are critical to national development and assured that NCDMB would continue strengthening partnerships with both LADOL and ESSO to build in-country capacity.
Ogbe further described ESSO as a deliberate and reliable operator, expressing confidence that the project would be delivered on schedule. He also urged the company to prioritise the utilisation of Nigerian expertise and resources throughout the project lifecycle.
Earlier, the Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Mr. Jagir Baxi, described the project as a significant milestone in ESSO Nigeria’s over 70-year partnership with the country. He said the investment reflects the company’s commitment to enhancing Nigeria’s deepwater offshore capabilities.
Baxi added that the project would be executed largely by Nigerian companies, thereby supporting job creation and the development of local expertise in engineering, construction, and commissioning.
The ceremony was attended by representatives of the Bank of Industry, executives of ESSO Nigeria, and the LADOL management team led by Dr. Amy Jadesimi. Officials from the Nigeria Customs Service, the Nigeria Immigration Service, and other government agencies were also present.
