In line with current industry direction for Oil Country Tubular Goods (OCTG) in-country value-add, BOG took the initiative to invest in an OCTG threading plant in collaboration with BOG’s technical partner, Shanghai Fanzhenglong. The Chinese company is a leading manufacturer of OCTG.
Based on this, Kayode Thomas, CEO of BOG met with representatives of Shanghai Fanzhenglong to sign a Joint Venture (JV) Agreement with the Chinese firm on setting up an OCTG threading plant in Lagos. The meeting was to conclude the agreement and come up with a Memorandum of Agreement (MOA) indicating what each party will do towards the realisation of the OCTG threading plant.
Earlier in the year (September), members of Shanghai Fanzhenglong’s management team had visited BOG to carry out market assessment and site location analysis for the OCTG threading plant. During this initial visit, many key industry stakeholders in the Nigeria oil and gas industry were visited.
The MOA is a commitment from both parties to achieve a commissioned plant in 2018. This will in turn drive the expansion of local capacity and the continuous development of local content in the oil and gas industry.
L-R: Mr. Kayode Thomas and Mr. Luo Long Long during the signing of a Joint Venture Agreement on the Threading Plant.
L-R: Mr. Jun Yao, Mr. Luo Long Long, Mr. Kayode Thomas and Mr. Zhang Zheng during a visit to the Chengde Pipe Mill in Jiangsu Province, China for further discussions on the proposed threading plant in Nigeria.