LADOL

Overview

LADOL was specifically designed to provide logistics, engineering and other support services to offshore oil & gas exploration and production companies operating in and around West Africa. Services include: personnel management, catering & hospitality, facilities for the supply of bulk materials, warehousing, berthing and vessel handling, rig repair, logistics and construction equipment, personnel transportation, a helicopter base, open and close storage facilities, sewage and waste treatment, potable water and medical services.

LADOL's designation as a Free Zone makes it is a one-stop shop and premier investment destination for multinational industrial and oil & gas companies. It offers a conducive business environment with a number of incentives including: tax holiday, zero customs duty for goods imported into the Zone and unlimited expatriate quota. Free Zone companies presently operating at LADOL are engaged in any of the following: Shipbuilding; Engineering, procurement and construction; Deepwater offshore exploration and production; Oil & gas services; Pipe coating; Steel construction, Mooring services; Vessel and rig repairs; and Training.

History

LADOL's developer, "LiLe", began the construction of the logistics and engineering base in 2001 and commenced full operations in 2006. In June 2006, LADOL was designated as a Free Zone pursuant to the Nigeria Export Processing Zones Act No. 63 1992. Completed at a cost of US$150 million, LADOL's initial infrastructures included: a 200m quay, 8.5m draft, 25-ton/m2 high load bearing area and additional 30-ton bollards at either end that can accommodate up to six supply vessels and three heavy-lift vessels; a hotel; warehouse; office complex; road; water treatment; and underground reticulation.

Major engineering projects that were successfully carried out at LADOL included: the final installation of Chevron Agbami FPSO between 2006 and 2007; repair jobs on Ben Avon, Transocean-Baltic and the Noble Drilling's Noble-Percy Jones rigs, all in 2011; and the maintenance of Noble Drilling's Noble Lloyd Noble rig in 2012.

In 2015, with the support of Total Upstream Nigeria Limited, LADOL was further expanded to include a new US$300 million Floating Production Storage and Offloading (FPSO) vessel fabrication and integration facility. The FPSO vessel fabrication and integration facility - currently being operated by SHI-MCI FZE, a Nigerian Local Content initiative-driven incorporated joint venture between Samsung Heavy Industries and LADOL's shipyard operator, Mega-Construction and Integration FZE - was initiated to fabricate and integrate Total Egina FPSO in Nigeria and other similar projects expected to be carried out in Africa. The fabrication and integration facility consists of an assembling area, a painting shop, utility and warehouse area with a production capacity of 10,000 metric tons and a quay length of approximately 520m, depth of 13.5m and heavy lifting area of 5,000 metric tons. The shipyard is set to increase the size of vessel fabrication in Nigeria, create around 50,000 direct and indirect jobs and make Nigeria the leading country on the continent for offshore oil and gas fabrication and engineering.

The next phase of LADOL's expansion has been reported to include a dry dock that will be the largest in West Africa and attract as many as 100,000 direct and indirect jobs. Ongoing infrastructure projects in LADOL include: a technical training academy set to begin operations in December 2016; the construction of a new 24 megawatts gas power plant set to commence in late 2017; the construction of a passenger terminal with an emergency response facility and capacity to accommodate 1000 passengers, scheduled to be completed in 2017.

Over US$450 million was reported to have been invested to develop a previously undeveloped land to a progressively growing all-in-one industrial village targeted at providing its investors with the specialised infrastructure, equipment and trained personnel they need, all in one location.

Management

LADOL's fully serviced facility is managed by LiLe, a privately owned leading onshore and offshore logistics and vessel repair company that provides streamlined services to international and Nigerian oil and gas companies operating in West Africa.

Economic Status

Free Zone companies operating at LADOL adopt the legal status 'Free Zone Enterprise' or 'FZE' - equivalent to a private company limited by shares - and enjoy numerous benefits, including:

Awards

In recognition of commitment to local content through the investment of US$500 million into building the only 100% Nigerian private industrial free zone in West Africa, LADOL won an award for outstanding performance at the 2016 edition of the Offshore Technology Conference (OTC) in Houston, Texas (USA)

In the opening remarks at the sixth African Petroleum Congress and Exhibition (CAPE VI) held in 2016, President Muhammadu Buhari GCFR identified LADOL, General Electric, Dangote Group and Samsung as companies that are adding value to the Nigerian economy by strategically investing in projects that implement sustainable local content policies.

In December 2015, LADOL won the award for ‘Outstanding Free Zone Integrated Hub Capacity Building Firm for Deep Water Oil & Gas Exploration, Manufacturing and Engineering Services’ by The Chartered Institute of Logistics and Transport.

Also in 2015, LADOL won 5 awards in fDi Magazine Global Free Zones of the Year Annual Rankings 2015. It was awarded winner of the Sub-Saharan African regional free zones award and winner of the Large Tenants award for Africa. LADOL was also Highly Commended as African Free Zone of the year. Winning the Large Tenants award, LADOL was praised for increasing some 37.5% capacity between 2013 and 2014. Due to the high specification infrastructure, round the clock operations and focus on delivering transparent reliable service to the Deep Offshore oil and gas market, LADOL has been able to halve the cost of logistics support in Nigeria. This 50% cost saving comes despite the fact that the facilities and equipment are all brand new. Two awards given to LADOL, which are Commendation for self-sufficiency, and Commendation for infrastructure improvements, was given for the first time reflecting improvements such as the ongoing development of its new 24 MW power plant, due to begin operations in late 2017.