Posted on 22.12.2011 - 10:00 EST in ACQUISITION/MERGER NEWS by Rons_ROV_Links
The Nigerian content development has received a boost as Jagal, a Nigerian firm and Subsea 7 one of the largest offshore oil servicing companies in the world have floated a joint venture company known as Niger Star7 for the execution of large and complex Engineering, Procurement and Construction Installation (EPCI) projects in Nigeria.
The joint venture by Jagal and Subsea 7, two major groups that provide services to Nigeria's oil and gas industry would enhance the in-country capacities of Nigerians who are currently working in NigerDock, a fabrication company, and subsidiary of Jagal and those working with Subsea7 who are also skilled in different aspects oil the oil and gas industry.
The partnership is in line with the provisions of the Nigerian Content Act, which emphasis the need to build the nation's industrial capability in the oil and gas industry.
A statement by Jagal noted that the venture would "create thousands of jobs, increase capacity, capability and be the true force behind the Nigerian Content Act".
For the first time a Nigerian company will have access to a vast amount of technology, people, and resources to compete in a very tough marketplace. Nigerstar 7 will create more added values, in the country through investment in long term development via people, training, equipment and access to leading facilities in Nigeria both in Warri and Lagos, the company said.
It added: "The formation of this company is the biggest development that has happened to the Nigerian Content development in oil and gas industry. The purpose of NigerStar7 is to provide a credible solution to the oil companies that allow them to execute large and complex EPCI projects locally in Nigeria.
Based in Lagos, NigerStar 7 is largely owned by Nigerian shareholders. The joint venture combines engineering, fabrication, installation and project management expertise of Globestar (Subsea 7's Nigerian subsidiary) and fabrication capability and capacity of Nigerdock (Jagal's subsidiary).
This combination allows the new company to meet client needs for subsea and topside construction and maintenance as well as pipe laying.
The joint venture has a combined work force of over 3,000 experienced people located in Lagos, Port Harcourt and Warri to manage Nigerian projects, two fabrication yards, in Lagos and Warri, with capacity to handle Nigeria's largest offshore projects.
With the support of Subsea 7's offshore construction fleet, one of the largest in the industry, providing these services and investing in Nigeria's oil industry, NigerStar 7 is committed to the development of Nigerian jobs and skills."
Commenting on the joint venture, NigerStar 7's Director for Business Development, Valentine Ugbeide said: "NigerStar 7 is a powerful initiative to create a Nigerian company, to build on Nigerian facilities and capable of tackling the most serious challenges in the nation's offshore industry.
This is a company that is committed to the growth of Nigeria's industrial competence."
Jagal is a leading Nigerian conglomerate with diverse operations mainly in the oil and gas sector.
It is the core investor in Nigerdock, one of Nigeria's leading o-ffshore fabrication and shipyard facilities. Nigerdock has also developed the largest industrial training school in the oil Industry, which will play an important role in supporting the operations of NigerStar 7.
Subsea 7 is a seabed-to-surface engineering, construction and services contractor to the off¬shore energy industry worldwide. The Group provides integrated services, and plan, design and delivers complex projects in harsh and challenging environments. Subsea 7, through its subsidiary Globestar, has a long and established track record in Nigeria's oil and gas industry.
Source: Subsea UK