OVH Energy launches Lagos midstream jetty

imageedit 2 6666436489OVH Energy is the new name for Oando Marketing. (Image source: OVH)OVH Energy, a licensee of the indigenous oil and gas company Oando retail brand, has launched its Lagos Jetty on 7 November 2017

Constructed at a cost of US$150m, the jetty was designed to increase the vessel delivery capacity and off-loading efficiency of petroleum products at Apapa in Lagos.

According to OVH, the jetty has been identified as an immensely valuable asset for the company and is aiming to allow 45,000DWT vessels to berth and discharge their products without lightering and demurrage.

The jetty is also expected to lead to significant reductions in the cost of importing petroleum products into Nigeria, with the total cost saving across the industry being projected as more than US$120mn per annum.

Speaking during the launch of the jetty, Wale Tinubu, chairman OVH Energy, said that the Lagos midstream jetty focuses on providing innovative solution to the perennial challenges that the marketers faced during importation of petroleum products.

In comparison to available jetties, the Lagos Midstream Jetty has the capacity to receive larger vessels of up to 45,000 DWT in one lot, thus reducing the current necessity of bringing in smaller volumes of petroleum products in several batches. This will result in significant cost savings on lightering and generate economies of scale advantages for marketers.

Commenting on the advantages of the jetty, the company stated that the Lagos midstream jetty consists of draft advantage, which results in elimination of lightering costs and promotes economy of scale advantages.

In addition, the jetty’s pipeline discharge flow rate focus on cost savings on demurrage charges and operational facilitates aim to prompt vessel turn-around. The pipeline-storage tanks are seen to result in decreasing the utilisation of third party facilities for storage and other issues.

The company further noted that the jetty has been built in accordance to relevant environment and safety standards.

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