South Korean shipbuilder, Hyundai Heavy Industries Limited has been contracted by Nigerian indigenous company operating in the oil and gas sector of the economy, Temile Development Company Limited, to build two ships at a cost of $120 million, business a.m. has learnt.
The two ships to be built by the globally renowned shipbuilder include one firm and one optional liquefied petroleum gas (LPG) carriers. The first of the two ships is expected to be delivered by the first quarter of 2020, a statement announcing the signing of the contract said.
The contract, which was signed in London between Temile Development Company and Hyndai Heavy Industries officials was witnessed by Tony Attah, chief executive officer of Nigerian liquefied Natural Gas Company (NLNG), Simbi Wabote, executive secretary, Nigerian Content Development and Monitoring Board (NCDMB) and Mohammed Balarabe, deputy managing director, Fidelity Bank, Fidelity Bank is main banker to Temile Development Company Nigeria Limited.
Temile is a 100 percent wholly owned Nigerian company which five years ago began its marine and offshore operations, with a vision to revolutionize the shipping business in Nigeria. The company’s fleet comprises of 16 offshore vessels, acquired within the last five years. The new carriers would be the first of their kind in the West African oil and gas market and would enable the company service an on-going time charter LPG contract with NLNG.
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“We have extensive experience in various sectors of the oil and gas industry in Nigeria, with particular interest in the offshore shipping and logistics. Our entrance into LPG market is exciting and we are in very safe hands to have ordered a LPG carrier from Hyundai Mipo Dockyard. This will no doubt increase the participation of Nigerian investors in the LPG space,” said Alfred Temile, CEO of the company.
Tony Attah, CEO of NLNG, said the transaction was indeed ground breaking, explaining that it supports the quest to develop the domestic LPG market and aid the growth of indigenous companies in the process.
“NLNG’s domestic LPG intervention scheme aligns with our business focus of bringing energy to the world and helping to build a better Nigeria,” Attah stated.
Whilst commending Temile Development Company for the trailblazing move, Fidelity Bank’s Balarabe emphasized the need to increase local participation of indigenous companies in the oil and gas industry and reiterated the bank’s support for indigenous players to grow capacity.
“The attendant effect on job creation and economic development is huge and unimaginable if Nigerian companies can participate more in the entire oil and gas value chain,” Balarabe said.