Emma Amaize
22 November 2008
You will not understand or fully appreciate why the Delta State Governor, Dr. Emmanuel Uduaghan is excited about the recent safe arrival of the reactors imported by Chevron Nigeria Limited for its ongoing Escravos Gas to Liquid project in the until you visit the site of the project and see things for yourself.
And that was exactly what happened when the Senate Committee on Gas, led by Senator Osita Izunaso, comprising Senator Patrick Osakwe (vice chairman), Senator Sekibo, Senator Gbenga Aluko amongst others, accompanied by the governor and some journalists from Abuja and other parts of the country went there lately.
Before the flight by means of a helicopter to the Escravos, the committee members visited the Governor's Office Annex in Warri where they briefed Dr. Uduaghan on their mission to the state. The governor was expecting them and because of the importance he attached to the project, he invited the chairman of the Senate Committee on the Niger-Delta, Senator James Manager, member, representing the constituency in the House of Representatives, Hon. Daniel Reyneiju and the chairman of the Warri South-West Local Government Area, Mr. George Ekpemupolo to join him in playing host to the team.
Senator Izunaso who commended the governor for his presence and contribution during the last public session of the committee in Abuja said they were in the state on an oversight function to the CNL projects in the state and specifically, to find out the reason for the escalation of the cost of the EGTL (phase three) project from 1.7 billion dollars to the current 5.9 billion dollars. He said the committee was carrying out a public hearing on the matter and was in the state to verify whether what was on ground justify the expenses on paper.
In his response, Dr. Uduaghan thanked the committee for the visit and explained why he had to leave Asaba, the state capital to receive the lawmakers in the oil city. "It is because of the importance of Warri to the state as its economic hub that a Governor's Office Annex was built in the city to tackle the Warri crisis and other security problems. We are here every Wednesday to deal with these security problems, you are sincerely welcome to Delta state".
He told the committee that the state government was committed to the successful execution of the EGTL project because of the economic effect it would have on the people of the state, but, he was quick to point out that the state government had nothing to do with the costing of the project.
To the delight of the lawmakers and perhaps, a practical demonstration of his interest in the EGTL project, he offered to accompany them on their trip to the Escravos and explain the connection between the project and his government's determination to breathe life into Warri and other ports in the state.
The team left the Osubi Airstrip for the about 10-minute flight to the Escravos Tank Farm at about 10.38 am that Monday morning and were received by the General Manager (Operations) of the Escravos Tank Farm, Kelvin Owens and other officials.
At the project site, it was evident that massive construction works were going on but as inquisitors, Senator Izunaso said the lawmakers were on the spot in Escravos to witness the things on ground and would not want to make categorical assertions until they have put the facts together.
The presence of the Delta Waterways and Security Committee (DWSC) was palpable as one sauntered into the premises.
The body has put in place a security strategy that has kept militants in check in the state and a pleased CNL took time to commend some of its vice chairmen, Mr. Ayiri Emami and Mr. Thomas Ereyitomi who is also the chairman of the Ugborodo Trust for the peaceful coexistence between the company and the host communities.
The company, through slides and oral presentations by some officials explained how the project has gulped 2.5 billion dollars and what the additional 3.4 billion dollars required to complete the project is meant for.
The home office alone took 260 million, equipment and materials, comprising 15 compressors, 54 vessels, control system, over 250 kilometre square pumping, over 50,000 valves, etc - 614 million; fabrication (air separation unit, 20 modules, 5000 spools completed) - 100 million; logistics/storage (17 worldwide locations, nine ships offloaded at Warri, one ship arrived at Escravos for direct discharge, Warri port storage) - 57 million; construction (piling, heavy lift jetty, foundational works) - 252 million; staffing, Misc consultant support, Misc construction contracts - 113 million; owners cost - 401 million; operational team - 66 million; trainee programme - 222 million; and preparation of the engineering site from the pre-feasibility stage took 310 million.
Of note is the loss of 63 million dollars during the project execution due to the devaluation and weakening currency and it is feared that 860 million dollars, if not more, would be lost to devaluation the way things are going at the moment before the completion of the project.
Also, about 6,000-7,000 workers are fed daily at the project site with 26 tons of chicken, 26 tons of meat, 20 tons of fish, three tons of rice, 160,000 eggs, 109 tons of fruit, 13 tons of cooking oil, nine tons of cheese, 89 tons of vegetable oil.
The highpoint of the visit was the tour round the site where the lawmakers saw the various construction works that is going on but the icing on the cake is the reactors, which an official told the team "is the heart of the EGTL project".
"The fact that the reactors are here is an indication that the project is alive and well, all that is needed more is a little patience and finance and the job will be delivered", one of the consultants told Saturday Vanguard.
He said the reactor is like a converter, which transforms gas to other petroleum products like diesel, ethanol, wax, etc. The reactors were still in two very big ships awaiting installation when the team visited.
Governor Uduaghan said he was happy that the reactors arrived safely to Escravos because the impression some people were wont to give of Warri was that it was not possible for investors to bring in their goods to the state through the ports and waterways of the state.
He, however, said the arrival of the reactors without any molestation by the so-called militants or sea pirates has shown that Delta state is safe for investors, adding that many other ships had arrived Warri to offload goods in the past few months without complaints.
If there is anything the governor has been specially commended by the people of the state and beyond since he assumed office, it is the way and manner he has sagaciously handled the twin issue of peace and security.
After the inspection, newsmen spoke to Senator Izunaso who said the committee has seen some activities on ground but would proceed to Qatar where a similar project had been undertaken to assess the cost. He, nevertheless, said the committee would rely on the Nigeria National Petroleum Corporation (NNPC) audit of the project cost and technical advice on the additional 3.4 billion dollars that is required to complete the project.
Izunaso asserted that from what he saw, the project was still on the foundation level but, no doubt, it would change the economy of the country for the better if completed.
Governor Uduaghan slightly differed with him on the cost implication of the project, saying because of the difficult terrain of the region, some people may not know that it would cost 10 times in the riverside area what it takes to build a structure of such nature in an upland area.
He said that constructing the foundation of a project in the creek is more money-consuming than other aspects of the project because of the terrain and suggested that people should look at the overall benefit of the project to the state, Niger-Delta and the country.
"We are interested in this project because we know it will provide employment for our people, it will provide jobs for our local contractors and help us in bringing peace to the state because if the youths are engaged or have something doing, they will not take to hostage taking", he added.
Youths from the host communities who are working in the project site confirmed that they have been kept busy by the EGTL project and thanked the governor who later addressed them for showing concern about the project in the state.
It was virtually another campaign avenue for the ruling PDP, as the governor took time to tell the youths about the programmes of the party and the state government, as well as what they stand to benefit by being peaceful and obedient to the government.
The governor conducted the team round the Warri ports when the lawmakers returned to the oil city from Escravos to them to understand the connection between the project and other similar ones in the future with the port vis a vis revival of economic activities in the state.
A top official of the company hinted Saturday Vanguard that at the time of the visit, the EGTL project was 11 per cent completed, pointing out, "It is capital intensive but it will be a money spinner for the country when operational".
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