ERASKON Ltd to build lubes blending plant in Nigeria
ERASKON Nigeria Limited, a subsidiary of ERASKORP Group in partnership with the Nigerian Content Development and Monitoring Board (NCDMB), has announced the construction of the ERASKON 64,000 litres per day Lubricant and Chemical Blending plant in Bayelsa, Nigeria.
NCDMB is supporting ERASKON Nigeria Limited with equity capital to establish the plant, which is expected to create 200 direct jobs, and over 800 indirect jobs.
Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote, said: “Nigeria currently consumes about 250 million litres of engine oil per annum. This consumption grows by more than 5 percent every year due to the addition of new vehicles and machinery. However, the country’s blending capacity has remained constant at about 150 million litres, showing a shortage of about 100 million litres, with the shortage being met by the importation of finished lubricants. This leads to loss of revenue and job opportunities.”
“NCDMB partnership with ERASKON is in line with the agency’s mandate to develop local capacity in the oil and gas sector. Section 70(h) of the Nigerian Oil & Gas Industry Content Development (NOGICD) Act of 2010 mandates the Board to assist local contractors and Nigerian companies in developing their capabilities and capacities to further the attainment of the goal of developing Nigerian Content in the Nigerian oil and gas industry.”
The Executive Vice Chairman of ERASKORP Group, Mr Maxwell Oko said: “The idea of building a lubricants blending plant follows our determination to contribute to Nigeria’s industrial development. This lubricants blending project aims to provide employment, develop local manufacturing capacity, and increase local content participation in the industry. We believe our people can grow better with the proper transfer of know-how and the best way to aid that process is to cite companies where such know-how can be put to use closer to them. Our partnership with NCDMB further boosted our confidence. Their investment in us demonstrates clear commitment to our vision.”
When the plant is completed, it is expected to produce engine oils, transmission fluids, hydraulic fluids, specialized four-wheel-drive products, engine coolants, and waxes.
In the second phase of development, the company will go into manufacturing industrial chemicals such as drilling and production chemicals, transformer and turbine oil, and household products such as detergents and aerosols.
