Bateman Litwin Forms Nigerian JV
Bateman Litwin N.V. (BNLN) said that it is entering the Nigerian market through the creation of a local company, BateLitwin Global Services (BLGS), which is being established jointly with local entities to serve the growing demand for oil field services. BNLN will hold the maximum permissible stake of 49% in the new venture and will ensure the technical and operation management of the company.
The major oil and gas groups operating in Nigeria plan extensive investments in production, currently forecast to grow to over 15 billion US$/year by 2010. Independent forecasts anticipate oil production to increase from a current level of 2.6 million barrels per day (mbpd) to 4mbpd in 2010. The Group is also targeting the power market, where there is a current shortage of electrical generation power capacity of at least 5000MW.
The new company will primarily serve the Nigerian upstream oil and gas markets, providing both engineering and EPC (Engineering, Procurement and Construction) contracting services. It plans to initially hire up to 100 local engineers and to increase this number to between 200 and 250 by end 2007. The company will also establish local training facilities in order to ensure that staff matches the Company's standards for technical and professional competence. BLGS will also develop working relationships with local Nigerian companies in order to increase access to the Nigerian labor market.
BLGS has already undertaken several projects for oil and gas majors operating in Nigeria including:
- QIT Gas flaring diminution project for Mobil Nigeria
- OML 123 Basic Engineering Design for platform modification for Addax
- OML 58 upgrade phase 1 project for Total
The shareholders of BateLitwin Global Services have, to date, invested around $3m in the venture to provide for all aspects of commercial development and operation in the first 1-2 years.
Shuki Raz, Chief Executive, Bateman Litwin, commented:
"The creation of this local company is a strategically important step for BNLN, and it enables us to expand our core activities in a fast growing, target market. BNLN has already identified and secured several promising opportunities in Nigeria that are currently being developed by the Group."
Bateman Litwin focuses on mid-sized Energy EPC contracts, principally executed on a lump-sum turnkey (LSTK) basis. Bateman Litwin also provides technology solutions to the Phosphate Sector and Solvent Extraction Applications.
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