OTC: Work begins on Calabar Energy City in Nigeria

Work has begun to create an energy city in Calabar, Nigeria, that will allow oil companies to fabricate some of their required material and ease their logistic and infrastructure issues.

Uchenna Izundu
OGJ International Editor

HOUSTON, May 7 -- Work has begun to create an energy city in Calabar, Nigeria, that will allow oil companies to fabricate some of their required material and ease their logistic and infrastructure issues.

Eyo Ekpo, special adviser on projects in Cross River, told OGJ that the 376 hectares of land in Cross River state will be funded and managed through public-private partnership. The land is swamped and the government has begun to reclaim the site at Ekorinim Peninsula for the industrial area and a portion of Pamol Rubber Estate for residential.

Ekpo said, "We have been doing modeling for the past 6-9 months [and] we're ready to go next year." He said he was holding discussions with the Oil and Gas Free Zone Authority to acquire tax breaks for companies that would establish operations in the park.

Calabar Energy City (CEC) is an initiative launched by Sen. Liyel Imoke, the governor of Cross River state. Ekpo told OGJ that there would be a 25-hectare tank farm complex with a loading jetty, a river part complex, a heliport, a medical center, and a hotel and business complex. He said a private company would manage the park and he expects there to be strong interest from companies in using its resources.

For the first phase, oil companies will be able to secure 220-hectare plots under leases on the ecoindustrial park to carry out infrastructure and facilities. The second phase, covering 500 hectares north of Calabar, will focus on zones for residential, sporting, religious, and commercial uses. The industrial area is key to CEC, but both parts will be served by utility and infrastructure services delivered to high standards.

Cross River state is within the Niger Delta and the project will position Calabar as a secure and viable location for the oil industry because it is relatively secure, Ekpo told OGJ. It will also create job opportunities in the region and beyond.

CEC will take advantage of the federal government's policy that requires 60% of man-hours be carried out within the operating region. This has been difficult to meet in the Niger Delta due to the violence and attacks by militants.

Contact Uchenna Izundu at uchennai@pennwell.com.

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