Blue Seal Energy Group, a Nigerian indigenous energy solutions company, has commenced the siting of a 35,000 capacity chemical production plant, worth $12.5 million, in Nigeria. The chemical plant which is being strategically situated beside a mega refinery that is equally being built along the area, would be sited at Block A, Blue Seal Chemical Road, Ibeju-Lekki, Lagos.
Announcing the project at the groundbreaking ceremony, the Managing Director/Chief Executive Officer (CEO) of the company, Mr. Doyle Edeni, disclosed that the chemical plant, when completed, will produce 100 metric tons of chemical products per day and 35,000 metric tons per annum, with a prospect of expansion in other locations.
He said the plant would locally produce and supply quality water, industrial and oilfield chemicals of international standards to its customers, thereby cutting the earlier stretch of having to undergo the rigours of importing the chemicals from USA, China, Europe and or, other countries.
The MD/CEO also disclosed that, as a way of giving back to the society and contributing to the growth and development of Nigeria, the plant will provide over 500 direct and indirect jobs to Nigerians when completed.
While disclosing the need for siting the chemical plant in Nigeria, Mr. Edeni said Nigeria is in dire need of an indigenous chemical factory to bridge the gap of having to import chemical products from abroad, especially as more refineries and other chemical companies are birthing in the country.
“We have constantly maintained a leadership position in Water and Process Treatment Technology, providing our clients with efficient, cost-effective technology.”
What you should know:
Nigeria’s chemical importation was pegged at $1.4 billion just in 2019 alone, as revealed by a World Bank’s report. However, chemical importation into Nigeria is faced with many bottlenecks such as prolonged turn-around time for arriving in the country, leading to expirations at some times, as well as the high cost of the products due to scarcity of forex, shipment, logistics and customs clearance delays that put the delivery period of the chemicals to end-users at 8-12 weeks. But with the chemical plant situated in Nigeria, would reduce the delivery time to just 1-2 weeks, revealed Mr. Edeni.
‘‘You know chemical is a product that has a shelve life plan and because of that, you must plan very well. Sometimes, while your product is on its way to the country, some companies or refineries would have shut down operation, due to power issues and other challenges. By the time they arrive and stay for some period longer than necessary in the warehouse, they would have expired and lost quality.’’
On other complimentary facilities of the plant, the MD/CEO also said that the factory will consist of Chemical reactors, chemical blend plant, chemical conditioning and storage facilities and a chemical warehouse. He said the factory will also have a loading bay, a chemical research and testing laboratory; a fire station, a clinic and a canteen. Other sections of the factory would be an administrative block and a staff residence quarters.
Blue Seal Chemical Production Plant Limited (BSCPPL), a member of the Blue Seal Energy Group that consists of 5 sister organisations which specialise in providing engineering consultancy and technical support services as well as agri-business, allied ventures, heavy-duty equipment and machinery procurement and supply. Blue Seal Chemical Production Plant Limited was birthed in Nigeria in 2018.
Products produced by the group include manufacturing of drilling chemicals such as Barite, Bentonite, Caustic and Calcium Chloride, emulsion breakers, water clarifiers, scale inhibitors and paraffin inhibitors. Others are corrosion inhibitors, oxygen and H2S scavengers, boilers, cooling water, waste treatment chemicals and commodity chemicals.