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2. Onne Oil & Gas Free Zone
Located in the heart of Nigeria's main oil and gas production areas the Onne Oil & Gas Free Zone provides the ideal location from which to establish your Sub Saharan 'Distribution Hub'.
The Onne Oil & Gas Free Zone, south of Port Harcourt in Rivers State was established by the Nigerian Federal Government to provide the ideal infrastructure from which to create a distribution 'Hub Base' to service not only Nigerian onshore and offshore fields but also easy access to the entire West African and Sub Saharan oilfield operating areas.
The Onne Oil & Gas Free Zone was established by Government Decree No. 8, issued in the Official Gazette No.12 on the 29th March, 1996 declaring an area of some 16 square kilometres in Onnellkpokiri of Rivers State as a dedicated "Oil & Gas Free Zone".
The Free Zone became active in early 1997 and quickly took off by attracting many of the major oilfield operators who recognised the distinct advantages that the Free Zone could provide and the 'Tax Benefits' associated with this unique facility.
This was a 'First' for Africa and more importantly became the leading and premier Free Zone facility dedicated to the Oil & Gas sector. To
Integrated Logistic Services
Onne Oil & Gas Free Zone
{Qr 1
date, the Free Zone can claim the following success since its inception.
The fastest growing dedicated
1 I
Oil & Gas Free
World
The largest Oil Zone - Transit Base in the World The largest Oil Zone Oil Service World
Zone in the
& Gas Free and Supply
& Gas Free Centre in the
Integrated
2.1 Target Markets
For oil companies and service operators working DOWNSTREAM
within the African Oil & Gas arena it is important and (Refining, Distribution & Marketing of Products) vital to recognise the distinct advantages and
benefits associated with having an operation based TRANSITAND SUPPLY BASE
in the Onne Oil & Gas Free Zone. (Related activities involving the vital 'Logistic' link, which includes; Sea Freight, Air Freight, Those companies involved in the following related Road Haulage, Warehousing, Yard Storage &
areas can benefit substantially: Services Providers) UP STREAIM
(Exploration and Production of Oil & Gas)
The infrastructure in place also provides support facilities such a s accommodation, clinics, restaurants and recreational areas.
2.2 Market Access & Strategic Location
Onne Oil & Gas Free Zone enjoys an unrivalled strategic position in West Africa and it is undoubtedly the ideal location from which to establish your 'Distribution Hub' to service Oil & Gas projects in not only Nigeria (onshore & offshore) but also provides easy entry to all the Sub Saharan Region.
The ability to service the high speed requirements and demands of the Oil & Gas industry has led Onne Oil & Gas Free Zone to the forefront of becoming the World's Premier Oil & Gas Free Zone.
Servicing major development projects in Nigeria such as the Niger Delta Basin region where AGlP (Abo Field), ELF (Amenam), SHELL (Bonga & Ea Fields) as well as TEXACO (Agbami Field) are just a few examples of where Onne Oil & Gas Free Zone has pioneered the way in which 'Logistics' and other associated Free Zone Benefits were the deciding factor for these major operators.
The ability to bring vital time sensitive materials into a region that will not choke up your operation through bureaucracy and red tape has encouraged over 60 companies to register within the Free Zone.
Development is not restricted to Nigeria and having recognised that fact the Onne Oil & Gas Free Zone has put in place an easy-to use system that permits you to move oilfield equipment and spares from the Free Zone to other neighbouring countries such as;
GULF OF GUINEA, CAMEROON - Douala, EQUATORIAL GUINEA - IVlalabo, GABON
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PortGentil, CONGO - Pointe Noire, ANGOLA
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Soyo, Luanda & Lobito, IVORY COAST -Abidjan.'The Onne Oil & Gas Free Zone provides a quality facility from which international Oil & Gas operators can work to the highest standards of efficiency and accordil~g to the latest industry standards.
Sea Freight services by Container, Breakbulk, Project Carriers, RoRo & Coastal multi purpose feeder vessels can cater for your demanding requirements. Regular Liner Services are provided by Maersk Container Lines, Baco Liners, Torm Lines and many other vessels by inducement covering a worldwide network of loading ports.
Onne Sea Port offers one of the best facilities in Africa and is complimented by its efficient rapid vessel turn round times.
Air Freight is handled through the Free Zone in conjunction with FAAN (Federal Aviation Authority of Nigeria) at Port Harcourt International Airport where weekly flights and charter flights operate Safely and quickly (ensuring minimum delay to the consignee).
Air France Cargo, Panalpina, DAS and numerous weekly charters all operate without fear of lengthy ground delays. DMS (The Free Zone Management Company) operate a 'FAST T R A K ' airfreight clearance scheme whereby cargo destined and declared for the Oil & Gas Free Zone is immediately transferred under Customs Bond and Escort to a Warehouse located in the Onne Oil & Gas Free Zone.
Megrated
i ntels
Logisticw
services2.3 Benefits of the Free Zone
The purpose of the Onne Oil & Gas Free Zone is to provide a platform that will enable the Oil & Gas Industry an environment that compares with any international Oil & Gas Supply Base.
This is supported totally by a commitment from The Federal Government of Nigeria to ensure the right aspects of support services are in place such as:
Efficient Sea Port, Digital & Microwave Telecommunications, 24 Hour Customs Operation, No Red Tape, Minimum Bureaucracy and Paperwork, Dual Road Network joining the Port to all major Nigerian Cities, Power Generation, Heliport, Warehousing Facilities, Open Yard Storage, 24 Hour
Immigration Services and many other supporting facilities.
Establishing your industry in the Onne Oil & Gas Free Zone could not be easier and we actively encourage companies involved in the following operations to relocate to the Oil & Gas Free Zone.
These activities include:
Storage, Stacking, Supply Management, Distribution, Inspection, Transhipment, Consolidation and repackaging. Process Industries, assembling and manufacturing activities associated to the Oil & Gas sector.
Integrated Logistic Services
2.4 Incentives & Advantages
The establishment of the Onne Oil & Gas Free Zone by the Federal Government of Nigeria under Decree No 8 (29th March 1996) provides a package of incentives and benefits that exceeds any of its competitors. The Nigerian Government simply wanted the 'Best Available'. Taking examples from some of the world's most successful Free Zones suchas Jebel Ali in Dubai - United Arab Emirates and Batam Island in Indonesia a tailor made package was modelled to suit the Oil & Gas Industry requirements.
STANDARD FREE ZONE BENEFITS
These incentives provide the ideal vehicle from which the Oil & Gas Industry can take maximum advantage and ensure maximum cost savings benefits.
100% Import & Export Tax Exemption 100% Exemption from commercial levies 100% Repatriation of Capital & Profits 100% Foreign Company Ownership No Expatriate Employment Quotas No Corporate Tax
No Perso.nal Income Tax
Sponsorship of Personnel by the Free Zone Authority
Free Zone Special Immigration Unit No Pre-Shipment Inspection
Fast Trak Air Freight Clearance Programme SPECIAL ADVANTAGES TO OhlhlE OIL & GAS FREE ZONE
Detailed below for your reference are some of the additional and specific advantages to investors within the Onne Oil & Gas Free Zone. These advantages clearly highlight the TIME & COST benefits to operating within an efficient environment;
A) Procedures
Fast, quick and simple Free Zone registration and application procedures
Little or no bureaucracy No Red Tape
0 No Pre-Shipment inspection requirements at country of origin for goods destined for the Free Zone (avoids very lengthy delays)
Fast and Efficient Cargo Customs Clearances (The Free Zone has its own dedicated Customs Unit)
Duty only paid on goods physically imported into
Nigeria (they remain exempt whilst in storage within the Free Zone)
Customs Privileges at all Nigerian Ports &
Airports for cargo consigned to the Free Zone.
No Strikes or Lockouts permitted within the Free Zone
Fast Trak Airfreight Services
Free Zone visitor - Fast Track through the arrivals section at Lagos & Port Harcourt International Airports
Expeditious immigration services for all visiting and Free Zone personnel
Bureau Veritas
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IN HOUSE - Services on site (for CRI Reports)Competitive Logistic Services B) Inventory Cost Benefits
Reduction in handling operations for cargo coming into the Free Zone
Avoidance of Double Handling
Ability to hold DUTY FREE STOCK
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without paying Customs Duty (releasing valuable Cash Flow benefits)No time restrictions for cargo stored within the Free Zone
Easy access to logistics services at competitive prices
24 hour access to your stock
Freedom of stock movement (with minimal paperwork)
Open or Covered Storage facilities
Incentive payment schedule for Logistic Storage Dedicated or Common User storage facilities Stock availability to your customers (no overseas shipment delays)
C) O n n e O i l & G a s Free Zone - STRATEGIC ADVANTAGE
ldeal geographic location from which to service all international operations
ldeal distribution Hub for Sub ~ a h a r a n and West African Region
Access to all projects - Onshore & Offshore Excellent Port Infrastructure
Quality Management Team
Sea, Air and Road links (later will include Rail) Highly competitive pricing structure
Flexible Management Approach
lnternational Standards of Working ~ n v i r o n f '
/'
Highly trained and skilled workforce ,:"
/II
Integrated
i rife 1-s
Logistic2.5 The Free Zone Team
The Onne Oil & Gas Free Zone is recognised by the Federal Government of Nigeria as a major project and has provided the required levels of support to ensure that it stays at forefront of industry standards.
The Free Zone is supported by the following entities:
Federal Ministry of Commerce Federal Ministry of Finance Federal Ministry of Transport Free Zone Authority
Nigerian Ports Authority - NPA Nigerian Customs Service - NCS Nigerian Immigration Service - NIS
Nigerian National Petroleum Company - NNPC Department of Petroleum Resources - DPR F r e e Z o n e Management Company (DMS International Ltd)
Bonny Rivet NGL
These entities make up the Free Zone Team
.
Since its inception all Government Departments and Parastatals have been extremely supportive of this venture between Public & Private Sector.T h e F r e e Zone Management Company (DMS International Ltd) , which reports to the Free Zone Authority and Federal Ministry of Commerce keeps other Government Committees up to date on its progress.
This has enabled the Free Zone to develop from a relatively small operation in 1997 (when it first started) to a high volume (freight movements) operation with over 60 clients at the end of the year 2000.
lkpokiri Island 1
Development 1
FREE ZONE
Btxtegrated
i nt e lb
Logistic:w
services2.6 Onne Free Zone Client Base
The benefits, incentives and advantages provided by Onne Free Zone has enabled it to attract some thirty eight of the largest and most prominent Oil & Gas Companies in the world today. Onne Free Zone investors include:-
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Approved Enterprises
Prodeco International Mobil Producing Unlimited lntels International BV1 Elf Petroleum Nigeria Limited Sea Petroleum & Gas
Vetco Gray Nigeria Limited Bonny Holding Limited
Sooner Pipe & Supply Nigeria Limited Shell Pet. Dev. Company
Sedco Forex
Saipem Nigeria Limited
Saipem Contracting Nigeria Limited Esso Prod. & Exploration Nigeria Limited Schlumberger Dowell
Nigeria Agip Oil Company
Trevi Foundations Nigeria Limited Geoservices Nigeria Limited Siama Nigeria Limited Sea Trucks Nigeria Limited Sea Bulk Offshore
Schlumber Anadrill Nigeria Limited Schlumber Nigeria Limited
Starz Marine & Engineering Nigeria Limited Socominter (DST)
Chevron Nigeria Limited Stoke Oil
Funtai LimitedIAtlas Cement Star Deep Water
Alcon
Fiddil Limited
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31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
Approved Enterprises
M-l Nigeria Limited Texaco Overseas
Baker Hughes Nigeria Limited Remm Oil
Nigeria Agip Exploration Limited Cooper Cameron Corporation Total Upstream
SNEPCO
AMNl International
AGlP Energy & Natural Resources Nigeria Limited FMC (SCOA Petroleum)
ElDA (Inc)
Eharime Nigeria Limited
Pellegrini Nigeria Catering Limited Sudelettra Nigeria Limited
W.A. Drydocks Limited
Diesel Power (Nigeria) Limited Walvis Nigeria Limited
Delta Environmental Logistics Limited Integrated Materials Management Limited Maersk Nigeria Limited
Tubulars DST Nigeria Limited
Halliburton Energy Services Nigeria Limited Edison Chouest Offshore Nigeria Limited Canadian Petroleum Resources Nigeria Limited CXY Field Services Nigeria Limited
CXY Nigeria O~lfield Services Limited West Africa Container Terminal Conoco Energy Nigeria Limited International Catering Limited
Integrated Logistic Services
3. Oil Service Centers
The concept of an Oil Service Center has been fully developed in places like Aberdeen and Stavanger in the North Sea, Morgan City in the Gulf of Mexico, and all over the world where there is petroleum activity.
INTELS, having the facilities, the structure, the majority of Oil Producing and Service companies operating within its bases, has obtained t h e permission from the relative authorities to create Oil Service Centers in West Africa, precise locations of which are, Onne (Port Harcourt, Nigeria), Warri (Nigeria), Calabar (Nigeria), Luanda (Angola), Lobito (Angola), Namibe (Angola), Pointe Noire (Congo), Port Gentil (Gabon), Abidjan (Ivory Coast).
Oil Service Centers offer a full range of services to the Oil and Gas lndustry in the region. Each company has a dedicated area t o operate its services and offices to manage their operations. The areas are completely self-sufficient in terms of electricity, water, communications, living camp,
catering facilities, transportation, etc.
The services offered are:
1 Transit & Marine Shore Base Services 2) Shipping and Air Freight
3) Clearing & Forwarding 4) Living Camp
5) Catering
6) Drilling Companies & Rig Suppliers 7) Support vessels, Barges & Tugs 8) Drilling Chemicals, Mud & Cement 9) Tubular Inspection
10) Tubular StockistISupplies
11) Pipe Coating Plant (Coal tarlconcrete coating) 12) Machine Shop
13) Diving
14) Heavy Lift Facilities 15) Services and Tools
16) Construction (offshorelswamp) 17) Rig Stacking and Maintenance 18) Incinerator
3.1 Oil Service Center Advantages
Oil Service Centers provide the following advantages to the Oil and Gas Industry in Nigeria:
1) Economic benefit to the relative country Creation of job opportunities
Higher investment in the Oil lndustry
Increasing efficiency in drilling, production, service and distribution.
2) Economic benefit to all Oil and Gas related companies
Having all of the companies operating in the Oil Service Center, it is possible to offer a full package of services in the same area. The immediate advantages are:
Faster services
Elimination of communication problems between contractor & client
Minimize material handling risks
Better management of tools and equipment.
3) Security advantages
With the establishment of an Oil Service Center, all Oil Companies operate in the same bonded area, which is fenced to maximize security.
4) Logistic advantages
The Oil Service Center provides logistic facilities like communication, housing, transportation, and catering.
