Temile signs $120 million vessel contract with Hyundai
Temile Development Company Limited, an indigenous shipping company operating in the Nigerian oil and gas industry, has signed a ship building contract with South Korean shipbuilder, Hyundai Heavy Industries (HHI) Limited.
Under the terms, Hyundai will build one firm and one optional Liquefied Petroleum Gas (LPG) carriers. Both vessels are valued at over $120million with the first carrier expected to be delivered by the first quarter of 2020.
The contract, which was signed in London recently between Temile and HHI officials was witnessed by the CEO, Nigeria LNG Limited (NLNG), Tony Attah; Executive Secretary Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabot; and Deputy Managing Director, Fidelity Bank, Mohammed Balarabe.
Fidelity Bank is the main banker to Temile Development Company.Temile Devt. is a 100 percent wholly-owned Nigerian company, which began its marine and offshore operations five years ago, with a vision to revolutionise the shipping business in Nigeria. The company’s fleet comprises of 16 offshore vessels, acquired within the last five years. The new carriers would be the first of their kind in the West African oil and gas market, and would enable the company service an on-going time charter LPG contract with NLNG.
“We have extensive experience in various sectors of the oil and gas industry in Nigeria, with particular interest in the offshore shipping and logistics. Our entrance into LPG market is exciting and we are in very safe hands to have ordered a LPG carrier from Hyundai Mipo Dockyard. This will no doubt increase the participation of
Nigerian investors in the LPG space,” said the Chief Executive Officer, Alfred Temile.
Also speaking at the ceremony, Attah said the transaction was indeed ground breaking, explaining that it supports the quest to develop the domestic LPG market and aid the growth of indigenous companies in the process. “NLNG’s domestic LPG intervention scheme aligns with our business focus of bringing energy to the world and helping to build a better Nigeria” Attah stated.
Whilst commending Temile Development Company for the trailblazing move, Balarabe emphasized the need to increase local participation of indigenous companies in the oil and gas industry and reiterated the bank’s support for indigenous players to grow capacity. “The attendant effect on job creation and economic development is huge and unimaginable if Nigerian companies can participate more in the entire oil and gas value chain” he said.