(Ecofin Agency) - Oando Plc, has launched its newly constructed midstream jetty designed to reduce the challenges associated with the discharge of petroleum products at Nigerian ports. This is also estimated to save the country over $120 million in demurrage annually.

The new facility has a half-kilometer subsea pipeline, and a 16” 3km onshore line and is capable of delivering over 3 million tonnes a year. Speaking at the berthing of the first cargo in Lagos, Olaposi Williams (photo), CEO of OVH Energy, Oando’s downstream licensee, noted that the 127 jetties in Nigeria can no longer service the needs of the country and this has posed a major problem for vessels trying to discharge at the port.

In this framework, the new subsea jetty has been constructed to allow 45,000 deadweight (DWT) vessels berth and discharge their products without lightering and demurrage. “The fuel jetties at the Apapa Wharf are incapable of accommodating large volumes of fuel imports, with maximum vessel size restricted to between 18,000MT and 20,000MT. Furthermore, over $120 million are lost annually, as every vessel that berths at the Apapa jetty has a waiting time of between 14 to 21 days, incurring a demurrage of between $280,000 and $420,000 per operation. Major fuel importers now have a preference for discharging their products outside Nigerian waters, specifically at the ports in Cotonou, Benin, Niger Republic and Lome, Togo,” she explained.

With 70% of Nigeria’s domestic petroleum products demands being met through imports, the lack of adequate infrastructural continues to have a significant effect on the distribution of petroleum products in the country. According to data from the Nigerian Bureau of Statistics (NBS), Nigeria spent $7.3 billion in importing refined petroleum products in 2016.

Anita Fatunji