SHIN Predicts Robust Economic Growth For Nigeria

Jejin Jeon
Yemisi Izuora

The managing director of Samsung Heavy Industries Nigeria (SHIN) Limited, operator of Africa’s leading marine fabrication and integration yard in Lagos, Mr Jejin Jeon, has predicted robust economic growth for Nigeria.

He described SHIN as a leading player in the West African oil and gas sector, with a cutting-edge marine fabrication and integration yard located in Lagos. “Our parent company, Samsung Heavy Industries, is based in Geoje, Korea and is one of the world’s leading shipbuilders and a leader in servicing the offshore oil and gas industry,” he said. “We at SHIN have always considered ourselves part of a global organisation, serving clients all over the world. As a result, the quality of work we deliver, the goals we set for ourselves, the way we envision the future – are always guided by world-class standards and expectations.”

Jeon disclosed that this heritage drove the company to choose Nigeria as the location for its first construction facility outside Korea. According to him, Nigeria’s location and economic growth make for a strong business case, adding however, that what really persuaded the company was the enormous human capital Nigeria possesses.

He noted that harnessing Nigeria’s potential together with its local partners would help place Nigeria on the global map. “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,”Jeon explained.

He said in order to meet the surge in Africa’s energy demand, domestic policy-makers aim to encourage operators and contractors to rely more heavily on local industry players for services and supplies, supported by local content regulations across the continent.

Jeon acknowledged the efforts of the executive secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote, in pushing to expand the Nigerian Local Content Act into new sectors of the economy, including power, construction and ICT. According to him, this also presents a tremendous opportunity for natural gas as a power generation resource in areas which lack some of the needed infrastructure.

He called on the leading international companies in Africa to support the domestic industry through investment capital, training and knowledge transfer.

“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.

“We are 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. He further noted that Samsung is already working with local firms in Mozambique in preparation of the arrival of the Coral South FLNG vessel now under construction in Korea.

According to him, “As more of these projects are stimulated by African governments, SHIN is equipped with the necessary knowledge, experience and technology required to support both advanced as well as small-scale LNG projects in Africa

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