Chika Amanze-Nwachuku
26 December 2006
Lagos — After over five decades of its involvement in crude oil and gas exploration without involving in crude oil transportation, the Nigerian National Petroleum Corporation (NNPC), has signed a joint venture agreement with Daewoo Ship-building and Marine Engineering (DSME) of South Korea, to establish a world class shipping company which will be involved in crude oil transportation.
Already, $10 million has been released as the initial capital for the joint venture business, which would be called Nigera-Daewoo Shipping Ltd (NIDAS).
The NNPC will aquire a controlling equity interest of 51 per cent, while DSME will have 49 per cent .
A release signed by Dr Levi Ajuonuma, General Manager, Group Public Affairs Division of the Corporation, stated that the scope of NIDAS will be local and international marine transportaion of merchant goods, crude oil and petroleum products.
The joint venture, he said, will have an offshore office, which would be responsible for vessle operations and logistics.
The statement, which was made available to THISDAY at the weekend reads, "the Nigerian National Petroleum Corporation (NNPC) and Daewoo Shipbuilding and Marine Engineering (DSME) of South Korea have signed a joint venture agreement to establish a world class shipping company.
The shipping joint venture company will be called Nigeria Daewoo Shipping Ltd. (NIDAS). "The scope of NIDAS will be local and international marine trasportation of merchant goods, crude oil and petroleum products.
The initial capital of NIDAS will be 10 million USD. The equity interests of NNPC and DSME in the shipping company will be 51 per cent and 49 per cent respectively. The joint venture will also have an offshore office which will be responsible for vessle operations and logistics.
"NNPC has been involved in crude oil and gas exploration for over five decades without any involvement in the crude oil transportation business. It is significant to note that the establishment of this joint venture is a major mile stone in the achievements of NNPC in the Upsrteam Sector of the Nigerian oil and gas industry.
"DSME has clear mid and long term goals and expects to fully participate in the oil and gas activities including the energy sector through its involvement in NIDAS.
"Nigeria offers many business opportunities and a friendly investment environment to Korean companies, therefore DSME will have ample opportunities to engage in new business development and diversify its investment port folios in Nigeria. Such opportunities may include participation in the development of oil fields as well as construction of FPSOs or semi-submersible drilling rigs.
The NIDAS project fits in well with DSME's mid to long-term vision for the building of a global network", he adds.
Be the first to Write a Comment!
Copyright © 2006 This Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
