Michael Eboh
20 November 2008
ARCO Marine, a subsidiary of Arco Petrochemical Engineering Limited has signed a $41 million (N4.8 billion) marine logistic contract with Total E&P Limited. The contract will see Arco Marine providing marine logistics for Total's offshore operation in the country.
Speaking on the award of the contract in Lagos, the Executive Director, Sales and Marketing of the company disclosed that the contract was a testimony to its high quality services and its determination to take advantage of the Federal Government's local content policy.
He said, "The contract is the beginning of the positive climate that lies ahead of the company, and in the tradition of the company, only an excellent delivery of world class standard would be the yardstick for the execution of the job."
He commended the local content policy of the Federal Government which has made it possible for it to realise its dreams in the execution of key services to International Oil Companies (IOC) in the category of Total.
He disclosed that the contract is a major milestone towards the realisation of indigenous participation in the oil and gas sector through the Federal Government's drive for a minimum of 40 per cent local input in oil exploration and production activities in the country.
According to Carew, "The contract which previously was executed by a foreign oil services company, has been described as a major milestone in realising indigenous participation in the oil and gas sector as portrayed by the Federal Government's drive for a minimum of 40 per cent local input in oil and gas activities, with its cost minimisation implication and the value added benefit of providing employment and technological know how to Nigerians.
Over the years, the Nigerian National Petroleum Corporation (NNPC) had insisted IOCs must accommodate at least 40 percent local content; a challenge currently being given legislative backing with the sponsorship of a bill on local content development, which is in the last phase of its passage into law."
Mr. Gamaliel Onosode, Chairman, Zain Network, who took the lead in buying into the ARCO placement, called on investors to take advantage of the opportunity presented by the offer, as he is optimistic that the company has great prospects for the future with its diversified entry into other related services, the joint partnership with the Delta State government in the building of an industrial and business park, the provision, sales and maintenance of high quality generators through its subsidiary, Ascot-Arco Power Limited and Arco Pipeline Solutions Limited, currently engaged by a number of IOCs
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