The Nigerian subsidiary of South Korean company, Samsung Heavy Industries, has explained the reason the Asian company chose Nigeria as its first construction facility site outside Korea.
Managing Director, Samsung Heavy Industries Nigeria (SHIN) Limited, Jejin Jeon, explained that the country has some business traits that hold revenue potentials.
Jeon said the country’s business environment was poised for growth, considering its location and economic size in Africa. He added that the human capital of Nigeria was an advantage that favoured businesses operating in the country.
Samsung Heavy Industries is one of the largest shipbuilders in the world and one of the “Big Three” shipbuilders of South Korea. The company has developed and built the world’s first Arctic shuttle tanker and LNG FPSOs and has pioneered new markets by developing innovative products such as LNG FSRUs, various ships for polar regions, Arctic ice-breakers and container ships.
Jeon stated that Nigeria’s economy would thrive in 2020, adding that this belief was shared by others as well.
“We are not alone in our observations. In its recently published African Energy Outlook Report 2020, the African Energy Chamber outlined Africa’s growing demand for energy which is being met by new oil & gas resources coming online. As the African continent continues to urbanise, the demand for power increases,” he said.
Local partnership is a big deal: For Jeon, partnership with local partners also holds growth opportunities and investors need to tap into it. He commended the effort of the Nigerian Content Development and Monitoring Board (NCDMB) to promote local content, which he says with needed investment, the domestic industry could produce international quality results.
“I say this from experience, having led SHIN’s efforts to construct the flagship of the Nigerian offshore oil sector, the Egina FPSO. Before the Egina project, most maritime construction for African oil and gas projects took place outside of Africa.
“The Egina proved that strict local content rules can work and produce international quality results. Following the Egina project, we are now focusing on leveraging our experience in local content and vessels for the oil and gas sector to complete work for other Nigerian oil fields such as Bonga South-west and the HI-Block project,” he added.
Jeon explained that the company is also committed to supporting the development of LNG projects by constructing Floating LNG platforms.
“This will help countries develop gas-to-power projects to meet rising electricity demand while also reducing wasteful gas flaring. Like its parent company, Samsung Heavy Industries, SHIN has always partnered with local and regional operators in the oil & gas sector,” he said.