The Nigerian Senate has launched a proactive endeavor for the restoration and renovation of the dormant Kaztec Engineering Facility, located on Snake Island, Ilase, Lagos State. This strategic move reflects the Senate’s unwavering commitment to delve into the root causes behind the facility’s suspension and, concurrently, to seek solutions that can reinvigorate the Nigerian economy.
Kaztec Engineering Limited, a 100% indigenous Engineering, Procurement, Installation, Construction, and Management (EPIC-M) Company, was incorporated in 2005. It became a benchmark EPIC-M company for Onshore/Offshore Pipelines and Facilities Engineering. This was until a contentious force majeure declaration by Addax Petroleum Limited.
Main Cause Of Idling Of Kaztec Engineering Facilities In Lagos Nigeria.
The fabrication yard on Snake Island halted production in March 2015 due to tax issues between Addax Petroleum and the Federal Government. Kaztec Engineering Limited faced stagnation as its facilities remained idle due to unpaid salaries to workers, contractors, and vendors. This prolonged salary non-payment, the award of single-source contracts worth $1.244 billion, and a $10 million donation to the Jimmy Carter Foundation by Chrome’s Chairman, Sir Emeka Offor. These raised concerns about transparency and employee compensation. In fact, the restoration of Kaztec Engineering Limited is quite important. This is because it was integral to oil production from the Antan and Ofrima/Udele fields.
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Senator Eteng Williams led a delegation of committee members on a site visit to the Kaztec fabrication yard. The primary objective was to assess the extent of deterioration the facility had endured during its eight years of inactivity.
The restoration of Kaztec Engineering Facility follows a recent visit by Anambra State Governor, Prof. Chukwuma Soludo. Accompanied by various stakeholders, they conducted an on-the-ground evaluation. Governor Soludo urged President Tinubu to address the concerns surrounding the facility. He emphasized its potential to revolutionize the landscape of the Nigerian oil and gas sector.
During the inspection tour, Senator Eteng Williams pledged that his Committee would embark on a comprehensive investigation. Additionally, they would pinpoint the factors responsible for the current state of the project. Senator Eteng vowed to ensure that justice prevails for all parties involved. He assured that this visit had provided the Committee with firsthand knowledge, which would facilitate the formulation of effective policies. The senator also added that, with the knowledge gathered, they would prevent such occurrences in the future.
The inspection visit was attended by Committee members, including the deputy chairman of the committee, Senator Allwell Iheanacho Onyesoh, Senator Nwaebonyi Onyeka, Senator Victor Umeh, Senator Tony Nwoye, Senator Asuquo Ekpenyong, Senator Darlington Nwokocha, Senator Osita Ngwu, as well as representatives from NUPRC and other regulatory agencies.
