Esso Exploration and Production Nigeria Limited (EEPNL), an affiliate of ExxonMobil, has broken new ground in Nigeria’s oil and gas sector with the launch of a fully IOC-funded Shore Base facility at the Lagos Deep Offshore Logistics Base (LADOL).
The groundbreaking ceremony, held Tuesday at LADOL’s Apapa Port complex, marks the first time an international oil company has financed the construction of a permanent shore base within Nigeria’s premier deepwater logistics hub.
The event drew senior officials from the Nigerian Content Development and Monitoring Board (NCDMB) and the National Upstream Petroleum Investment Management Services (NUIMS), underscoring strong government backing for a project seen as a potential game-changer for logistics infrastructure investment in the sector.
Under the arrangement, LADOL will construct the facility using full funding provided by EEPNL through a long-term Logistics Base Contract. Once completed, the shore base will become part of LADOL’s permanent asset portfolio while serving as EEPNL’s primary logistics hub for its Erha Floating Production, Storage and Offloading (FPSO) vessel—one of Nigeria’s flagship deepwater assets.
The financing model represents a shift from the traditional approach where international oil companies build and retain proprietary infrastructure. Instead, EEPNL is funding an asset it will lease back, a structure that promotes indigenous ownership while easing capital constraints for local logistics providers.
Chairman and Managing Director of ExxonMobil’s Nigerian affiliates, Jagir Baxi, said the investment reinforces both operational efficiency and local content development.
According to him, the facility will strengthen support for Erha production while contributing significantly to Nigeria’s drive for greater local participation in the oil and gas value chain.
The shore base is expected to feature a modern administrative complex, warehousing facilities, chemical storage units, pipe sheds, and extensive laydown areas—critical infrastructure aimed at improving supply chain efficiency and reducing turnaround times for deepwater operations.
Baxi noted that beyond supporting EEPNL’s operations, the project is expected to attract suppliers, service companies, and investors to expand their footprint within Nigeria, while shared logistics infrastructure could help lower costs across the deepwater sector.
Construction of the facility will be largely executed by Nigerian firms, with local professionals leading engineering, design, and commissioning phases. The project is also expected to create jobs during construction and sustain employment throughout its operational life.
The development comes at a time when Nigeria’s deepwater sector continues to navigate challenges, including infrastructure constraints, security concerns, and shifting investment priorities among global oil majors amid the energy transition.
While some international oil companies have scaled back operations or divested assets, ExxonMobil has maintained a steady presence in Nigeria’s offshore space. The shore base project signals continued commitment to the country’s deepwater potential, where high-quality crude production remains significant.
For LADOL, the project strengthens its role as a key hub for integrated offshore logistics and fabrication services, while advancing Nigeria’s broader ambition to localise more of the oil and gas value chain.
Although timelines for completion were not disclosed, industry observers say the project could set a new benchmark for collaboration between international operators and indigenous infrastructure providers.
Bottom of Form