VZCZCXRO4812
OO RUEHMA RUEHPA
DE RUEHOS #0562/01 2201421
ZNR UUUUU ZZH
O 081421Z AUG 07
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9312
RUEHZK/ECOWAS COLLECTIVE PRIORITY
RUEHUJA/AMEMBASSY ABUJA PRIORITY 9101
INFO RUFOADA/JAC MOLESWORTH AFB UK
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC

UNCLAS SECTION 01 OF 02 LAGOS 000562 
 
SIPDIS 
 
SIPDIS 
 
DOE FOR GPERSON, CGAY 
TREASURY FOR ASAEED, SRENENDER, DFIELDS 
COMMERCE FOR KBURRESS 
STATE PASS USTR FOR ASST USTR FLISER 
STATE PASS TRANSPORTATION FOR MARAD 
STATE PASS OPIC FOR ZHAN AND MSTUCKART 
STATE PASS TDA FOR EEBONG,PDAVIS 
STATE PASS EXIM FOR JRICHTER 
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ 
 
E.O. 12958: N/A 
TAGS: EPET ENERG PGOV NI
SUBJECT: LAGOS SUPPORT PLATFORMS FOR DEEPWATER OIL AND GAS 
OPERATIONS UNDER WAY 
 
¶1.  Summary: ExxonMobil, Chevron and Shell have called for 
creation in Lagos of a modern industrial and support services 
base to support their deepwater exploration, construction and 
production.  Deepwater oil and gas expenditures in Nigeria 
currently total USD 10 billion per year.  Two companies 
bidding to provide such a base are Skillbase, a Jagal Group 
subsidiary, and Lagos Deep Offshore Logistics Base (LADOL). 
End Summary. 
 
Deepwater Integrated Support Center 
----------------------------------- 
 
¶2.  Tom Cardale, Managing Director, Skillbase, gave Carolyn 
Gay, Policy and International Relations Office of the U.S. 
Department of Energy and Pol-Econ Chief a tour of the Jagal 
Group's Deepwater Integrated Support Center (DISC) on July 
¶19.  Upstream offshore oil and gas expenditures in Nigeria 
currently average USD 12 billion per year, with the deepwater 
sector accounting for USD 10 billion of that total, Cardale 
said.  Chevron, ExxonMobil and Shell have called for the 
creation of a modern industrial and support services base, 
focused on deepwater technologies and services, in Lagos, 
Cardale said.  DISC/Skillbase/Nigerdock is among the 
companies bidding for the contract. Lagos and Port Harcourt, 
where support services for on-shore and shallow water service 
providers are based, are equidistant from the deepwater 
fields.  Companies hope to avoid the security problems faced 
by oil company workers in Port Harcourt by operating out of 
Lagos, Cardale said. 
 
¶3.  DISC will be operated by Skillbase, a Jagal Group 
subsidiary. Jagal owns the Nigerdock shipyard and fabrication 
facility, located on four kilometers of Snake Island, near 
the Tin Can Island Port, that forms the core of the DISC 
facility.  Nigerdock facilities include a floating dock and 
drydock, a repair quay, shipbuilding and offshore fabrication 
workshops and multipurpose workshops, and will be expanded to 
allow it to service Floating Production, Storage and 
Offloading (FPSO) vessels.  Skillbase will also expand 
existing housing, offices, open storage areas, container 
yards and warehouses.  DISC is located within a Free Trade 
Zone which provides duty free import and export, on-site 
customs processing, import/export license exemptions, 
exemptions from corporation taxes, exemptions from quotas on 
expatriate workers, repatriation of foreign capital, profits 
and dividends, and prohibition of strikes.  Plans are to 
serve the DISC facility will be served via high speed ferries 
and on-island minibus service. 
 
¶4.  The Jagal Group, headed by Anwar Jarmakani, has been in 
existence for 40 years.  In 2003, the group acquired the 
state-owned Nigerdock facility.  Nigerdock constructed 
mooring buoys for the Shell Bonga and ExxonMobil Erha fields 
as well as structures for Chevron's Agbami FPSO and Escravos 
Gas projects. 
 
Lagos Deep Offshore Logistics Base 
---------------------------------- 
 
¶5.  On July 10, Econoff and Econspec met with Dr. Amy 
Jadesimi, Deputy Chief Executive officer and Chief Financial 
Officer of Lagos Deep Offshore Logistics Base (LADOL) and 
Lagos Integrated Logistics Enterprise (LILE).  LADOL was 
established in 2000 by Global Resource Management Ltd (GRML), 
which manages the facility.  A free trade zone was also 
established at the LADOL site in 2006.  LADOL has a total 
area of 120 hectares, five of which were developed in Phase I 
of the project.  LILE expects that 30-40 hectares will 
eventually be used for its own logistics business and the 
remaining area will be available for investors.  Phase I, 
which required an investment of USD 40 million, involved 
construction of a quay for offloading two vessels at a time, 
quayside facilities for ocean-going vessels, facilities for 
 
LAGOS 00000562  002 OF 002 
 
 
installation of a water, fuel and dry bulk pipelines, a water 
treatment plant, warehouse and covered storage areas, office 
buildings and a sewage treatment system.  Subsequent phases 
will include construction of a health clinic, establishment 
of a security service, purchase of ferries and helicopter 
access areas, construction of permanent housing and leisure 
and restaurant facilities.  According to Jadesini, LILE has 
met the requirements for ISPS certification and expects to 
receive certification in August. 
 
¶6.  Carolyn Gay cleared this cable. 
MCCONNELL