News

September 9, 2016

NPA set to address monopoly in oil & gas logistics

PIA 3% OPEX: Confusion as oil firms seize host communities

*Oil rig

By Prince Okafor
LAGOS — The issue of alleged monopoly in the maritime logistic sub-sector has come to the fore again as the new Managing Director of Nigerian Ports Authority, NPA, Ms. Hadiza Usman, indicated, yesterday, that a review of industry regulations was underway to check any form of unhealthy operating environment including monopoly, across the maritime sector.

She said this while on a facility tour of Snake Island Integrated Free Zone, SIIFZ, where the Managing Director of SIIFZ, Mr. Anwar Jarmakani, told her that logistics in Nigeria’s oil and gas maritime services cost extra $4 for every barrel of oil produced in Nigeria due to monopoly.

Usman said: “Monopoly is not acceptable to us. We will review whatever operation that is on ground now.”

She also said that within the next few months, “NPA will study the procedures, if there is any legal or regulatory provision that permit such and we determine and advise the government on how to go about dismantling it.

“Government will create a level playing field for all operators. We will look to the areas we have to provide support. We appreciate the need for local content development.

“Government will ensure proper regulation and transparency that we will all appreciate and understand that no organization would entrench monopoly and it is unacceptable to the development of Nigeria.”

On the operation of SIIFZ, Anwar stated: “We truly offer world class service in every aspect of our business. We have invested and need government support. We don’t want to do anything that is outside laws and orders, we are to support government and do the right thing but we require support in the areas we deserve to be supported.”

He lamented that since 2006, his company had seen different forms of harassment even as they handle projects for major players in the oil sector.

“We were awarded projects but the projects were sabotaged and killed with every possible accusation, which has brought us to a standstill, but these are just history.

“We are handling projects in line with the federal government’s objectives and have developed the SIIFZ facility with proper audit by KPMG,” he noted.

He further added “We have sunk in $500 million dollar, we have invested, and we have produced and proved to every oil company that we would serve the right of the country.

“We were told that we are ship yard company and not to bring in topic of logistic. We have been in logistic, ship repair and maintenance, fabrication and we want to be allowed to do our business.

“We would do nothing that is not in alignment with federal government of Nigeria. We are also determined to support this government because we are in a serious recession,” he explained.