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Fidelity Bank hails Temile Group over $120m shipbuilding deal with Hyundai

Financial giant, Fidelity Bank Plc., has hailed the recent epoch making new ship building deal between indigenous shipping group, Temile Development Company Limited and South Korean shipbuilder, Hyundai Heavy Industries (HHI) Limited. Fidelity Bank is the lead banker to Temile Development Company

Business Hilights gathered that under the terms, Hyundai will build one firm and one optional Liquefied Petroleum Gas (LPG) carriers. Both vessels are valued at over $120million with the first carrier expected to be delivered by the first quarter of 2020.

The contract, which was signed in London recently between Temile and HHI officials was witnessed by the CEO, Nigeria LNG Limited (NLNG), Tony Attah; Executive Secretary Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote; and Deputy Managing Director, Fidelity Bank, Mohammed Balarabe.

Reacting to the agreement, Balarabe commended Temile Development Company for the rare feat, saying the deal has shown that indigenous shippers are making strong efforts to drive backward integration in the sector currently dominated by foreigners.

According to him, “The attendant effect on job creation and economic development is huge and unimaginable if Nigerian companies can participate more in the entire oil and gas value chain”.

Fidelity Bank chief also called for increase local participation of indigenous companies in the oil and gas industry with assurance that the bank will continue to support indigenous players to grow capacity.

Temile Development Company is a 100 percent wholly-owned Nigerian company, which began its marine and offshore operations five years ago, with a vision to revolutionise the shipping business in Nigeria. The company’s fleet comprises of 16 offshore vessels, acquired within the last five years. The new carriers would be the first of their kind in the West African oil and gas market, and would enable the company service an on-going time charter LPG contract with NLNG.

Making remarks after sealing the agreement, the Chief Executive Officer of Temile Development Company, Alfred Temile averred that “We have extensive experience in various sectors of the oil and gas industry in Nigeria, with particular interest in the offshore shipping and logistics. Our entrance into LPG market is exciting and we are in very safe hands to have ordered a LPG carrier from Hyundai Mipo Dockyard. This will no doubt increase the participation of Nigerian investors in the LPG space”.