200,000 jobs in sight as Obaseki, Chinese firms seal construction deals for Gelegele seaport

Efforts by the Governor Godwin Obaseki-led administration to transform Edo State into an industrial hub and create the 200,000 jobs he promised Edo electorates during his electioneering campaign are clearly in sight with the successful signing of two Memoranda of Understanding (MoU) with Chinese companies for the development of Gelegele Seaport and other infrastructure as well as a 5,500 modular refinery in the state.

While the Gelegele Seaport will open up Edo State to the international market, the 5,500 modular refinery will boost the refining capacity of local refineries and will address the age-long fuel supply crisis resulting from inadequate capacity to refine petroleum products locally.

The MoU signing ceremony in China on Monday, will see China Harbour Engineering Company, the biggest infrastructure company in China, with a robust portfolio covering the broad infrastructure spectrum, lead the development of the Gelegele seaport that will serve as the gateway for exporting manufactured goods from the Benin Industrial Park under construction and other manufacturing companies in the region.

The MoU signing is the result of series of engagements between Governor Obaseki and the Chairman of China Harbor Engineering Company (CHEC), Mr Lin Yichong, which started last year.

China Harbour Engineering Company Limited is a global player in infrastructure development handling the construction-dredging/excavati on for waterfront development in Yanbu, southwest Saudi Arabia and on the northern shore of the Red Sea as well as the Lagos moles repair project, being executed by the Nigeria Port Authority.

Others are the Offshore Approach Light Structure in New Doha International Airport, which includes three terminal bridges and three temporary steel bridges and the Ma’aden Infrastructure Project Port Design and Construction, owned by the Saudi Arabian Mining Company, amongst others.

The MoU for the Gelegele Seaport project was followed on Wednesday by the sealing of a deal with another Chinese Consortium for a 5,500 barrel per day modular refinery in Edo State.

The Chinese consortium is made up of Peiyang Chemical Equipment Company of China (PCC), a world-leading modular refinery company;  Sinopec International Petroleum Service Corporation (SIPS) which is a subsidiary of Sinopec, the top Chemical giant in the world and  African Infrastructure Partners (AIP), a Nigerian Infrastructural company.

 The first phase of the project will be ready within twelve (12) months after all the necessary approvals are granted by the regulatory authorities. 

The MoU signing ceremony for the refinery took place at SINOPEC headquarters in Beijing, China, and was witnessed by officials of the Nigerian Embassy in the Asian country as well as staff of   SIPS Nigeria, a major local fabrication company, with a branch in Benin City, Edo State. 

Speaking at the event, Governor Obaseki, expressed his delight at the local content component of the deal, which will ensure that Edo citizens are trained in welding, refinery operation and fabrication works to enable them participate in the construction of the refinery as well as its operation, post-commissioning.

The governor assured that the refinery construction will provide jobs for several unemployed Edo youths including the Libya returnees who are being evacuated from the crisis-ridden North African country.

Obaseki added that the modular refinery will solve the problem of inadequate petroleum products in the country and will turn Edo State to the preferred source of petroleum products considering the gateway status of Edo State to other parts of the country.

He expressed deep appreciation to the management of PCC and SIPS reiterating that with their support, Edo State is well on its way to becoming a hub of skilled manpower for the oil and gas industry and give boost to Nigeria’s local content policy.

“With the federal government of Nigeria’s commitment to support communities in the Niger Delta states to set up modular refineries, the SIPS fabrication yard in Benin City is expected to be very busy handling the fabrication jobs of modular refineries in the Niger Delta Region,” Obaseki said.

He pledged that his administration will provide community support to the project, assist in securing all regulatory approvals from the appropriate regulatory authorities such as the federal ministry of petroleum resources.

The Consortium committed to delivering phase 1 of the project within 12 months of receiving the required regulatory approvals.

In addition, PCC also agreed to finance the Demonstration modular refinery up to 70 per cent, thereby assisting in scaling the financing hurdle that has militated against the development of modular refineries in Nigeria. 

The project will be executed in two phases; phase 1 consisting of 500bpd demonstration refinery and phase 2 consisting of a 5,000bpd capacity refinery. The PCC will also serve as the Operations and Management company that will manage the refinery before transferring it to the local investors.

The demonstration refinery will serve as proof of concept and train the indigenes in the management of the refinery.