GROUP PROFILE
SEPTEMBER 2018
Technova Africa Group
Technova Africa Group consists of:
• Technova Construction Nigeria Limited
• Technova Energy Nigeria Limited
• Technova Pipemill Limited
• Technova Pipe Systems Nig Ltd
• Technova Coating Facility Nigeria Limited
Technova Africa Group
• A 100% Nigerian Group focused on the Oil & Gas, Construction and Energy Industry
• Office at 2A/2B Abimbola Okulaja Close, Lekki Phase 1, Lagos, Nigeria.
• Commenced Operations in 2010
• Engaged in construction of the Technova Steel Industrial Park situated at Ologbo, Edo State.
• The Technova Steel Industrial Park is a 150Acre Parkwith a 100m waterfront , strategically situated in thegas hub of Nigeria.
2
TECHNOVA INDUSTRIAL PARK
• Situated on 150 acres of Land in Ologbo Edo State. The Land has a 100Metre waterfront which is to host a Jetty which can support4metre drafts.
• The Park is proposed to host Technova's Steel Pipemill, Steel Coating Facility, 30MW Power Plant, a Jetty, an Induction Bending facilityand Steel manufacturing related facilities.
• The Land currently hosts a 203 metres by 33 metres steel coating shed (100% completed), a 18 apartment residential facility (70%Complete), a two storey recreational facility (60% Complete), a medical facility (85% Complete), a one storey steel project office (100%complete and operational), perimeter fence amongst others.
• An investment of over $14Million has been ploughed in the Park and its related resources so far.
• The first phase of Technova Steel Industrial Park will employ 3,500 Nigerians directly and indirectly and create 30 spin-off businesses.On completion, the Industrial Park will employ 18,000 Nigerians directly and indirectly and would have attracted an investment inexcess of $1.2 billion into Nigeria.
100% NIGERIAN OWNED
Technova Steel Industrial Park Resources
4
Res
ou
rces
PHASE 2
Commenc
PHASE 1
Steel Pipe Related Facilities
Technova
JETTY
30MWPower Project
Steel Man.
Related Facilities
e: Q3 2017 Q2 2024Q1 2018 Q1 2018 Q3 2017
• Technical Designs executed
• 150 Acre land Purchased
• 100 metre waterfront land secured
• Shared Facilities ( Residential Apartments, Medical Facility, Recreation Building)fencing, Office 80%Completed
• Access Road purchased
Q2 2020
• 150 Acre land Purchased
• 100 metre waterfront land secured
• Shared Facilities ( Residential Apartments, Medical Facility, Recreation Building)fencing, Office 80%Completed
• Access Roadpurchased
• OEM partner selected• FEED and Technical
Designs executed• 150 Acre land
Purchased• 100 metre waterfront
land secured• Coating Shed 100%
Completed• Shared Facilities (
Residential Apartments, Medical Facility, Recreation Building)fencing, Office 80%Completed
• Access Road purchased
• OEM partner selected• FEED and Technical
Designs executed• 150 Acre land
Purchased• 100 metre waterfront
land secured• Shared Facilities (
Residential Apartments, Medical Facility, Recreation Building)
fencing, Office 80% Completed
• Access Road purchased
• 150 Acre land Purchased
• 100 metre waterfront land secured
• Shared Facilities ( Residential Apartments, Medical Facility, RecreationBuilding) fencing, Office 80% Completed
• Access Roadpurchased
• 150 Acre land Purchased
• 100 metre waterfront land secured
• Shared Facilities ( Residential Apartments, Medical Facility, RecreationBuilding) fencing, Office 80% Completed
• Access Roadpurchased
PARTNERS AND SUPPORTERS
•Nigerian Content Development and Monitoring Board
•Shell
•Total
•Other IOCs
•Expressions of Interest for services obtained from Shell, Total
•Contracts have been executed with OEM Contractors andservice providers
Partners, supporters and support
6
Technova's Line Pipemill idea was conceived at the SHELL/ United Kingdom Trade and Investment (UKTI) Business Summitof May 2012 where the former Executive Secretary of NCDMB, Engr. Ernest Nwapa, presented passionately andconvincingly about the need to develop in-country capacity for Pipemill development in Nigeria. NCDMB has shownunequivocal and unprecedented support for Technova in all ramifications by supporting, promoting and creating anenabling environment for Technova to thrive. NCDMB has visited the Technova Park severally and has been a part of allmilestone achievements of the Technova Industrial Park. NCDMB also provided a Partial Guarantee for all loans takentowards the project. NCDMB has clearly show that it is a Partner to Technova.
Shell has consistently demonstrated its commitment to Technova by supporting for Technova's projects. As Technova's foremost IOC supporterand partner, Shell proudly facilitates delivery of Technova's projects by liaising with other stakeholders to ensure that Technova's projects thrive.Technova is one of the few Nigerian companies which Shell publically published their support for on Shell's website. Shell has visited the TechnovaPark on several occasions and has even initiated and led some industry stakeholders to the Technova Park.
TOTAL is a supporter of Technova. Total has conducted a private site visit to Technova sites and has held extensive engagements with Technovatowards understanding the Technova project and identifying how they can productively participate. Total has made commitments towardsproviding Technical Capacity building for some aspects of the Technova Project. Total has also provided an Expression of Interest in off-takingsome of the services which Technova is proposing to offer.
Other IOCS have also shown support by visiting the Technova Park amongst other ways of showing support.
OTHER ESTEEMED SUPPORTERS
Nigerian Content Development & Monitoring Board assistance
• The Nigerian Content Development and Monitoring Board has provided aPartial Guarantee of 30% of every Debt Amount required by Technova AfricaGroup amongst other incentives. This further Guarantees the Loan requiredfrom any lender.
• Excerpts from the 2010 Nigeria Oil and Gas Industry Content Development Bill which addresses the area of the Nigerian Content Development Fund
7
Proposed Operations
Expression of Interest from SHELL Petroleum Development Company
8
• In furtherance of their commitment to Technova, SHELLPetroleum DevelopmentCompany provided an Expression of Interest in receiving some of the servicesproposed to be offered by the Technova Industrial Park.
• A picture taken by Technova team and the high level team from SHELL andNAPIMS on 17th of June 2015 during a site Visit by SHELL and NAPIMS. The site visitwas initiated by SHELL
Proposed Operations
Expression of Interest from TOTAL Upstream Nigeria Limited
9
• On successful conclusion of a site visit and after several engagements withTechnova's promoters and team, Total Upstream Nigeria Limited provided anExpression of Interest in receiving some of the services proposed to be offered bythe Technova Industrial Park.
• A picture taken of Technova team and the high level team from Total led byTotal's General Manager , Nigerian Content, Mr Godwin Barika on 24th of June2015
Proposed Operations
Expression of Interest from PAN OCEAN Oil Corporation Nigeria Ltd.
10
• Pan Ocean Management engaged on supply of gas to Technova Industrial Park for proposed power plant
• Power plant not only supports pipe and coating mill but will have excesscapacity to supply surrounding community and hence meet one of Technova'sCSR objectives
Proposed Operations
A Letters of Interest from Fuxin Huatong, Manufacturer in China
11
• Pictures of some of Fuxin Huatong's facility in China. Fuxin Huatong intends on• Fuxin Huatong is a 30 year old Chinese Company that manufactures fittings, setting up similar facilities at the Technova Industrial Park.
flanges and forged pipes of carbon, alloy and stainless steel according tointernational standards for the thermal power, nuclear power, oil & gas, petrochemical & chemical Industry.
CONTRACTS
Technova Coating has executed several contracts with several partners including those listed below.
CONTRACT STATUS PARTNER
Operations and Maintenance Contract Concluded and Signed iSAM HWS India Private Limited
Supply and Purchase Contract Concluded and Signed iSAM HWS India Private Limited
Erection and Commission Contract Concluded and Signed iSAM HWS India Private Limited
4MW Power Purchase Agreement Final Stages of Executing a PPA CET Power Limited
12
13
CORPORATE SOCIAL RESPONSIBILITY
•Focused on Education, Access to Clean Water and PowerProvision
•Planned CSR Budget of $16Million over the first 10 years
•Has trained 12 Nigerians in Steel Shed Assembly
•Partnered with a foremost training institution to provide training for all staff
The Pipemill and the Coating facility will directly and indirectly create 3500 and over 30spinoff businesses while the Park will create 18,000jobs..
The Technova Steel Industrial Park ,with a total Investment of $1.2BN will eventuallyemploy over 18,000 people with over 200 spin-off businesses.
The first phase will have an annual wage bill estimated at over $600,000 while the annualwage bill by the third phase will be in excess of $4,000,000 thereby providingemployment for qualified Nigerians while prioritising the qualified staff from the localcommunities
The Company has a robust Corporate Social Responsibility plan which focuses on threebroad points: Education, Clean Water and Power
The Company has a CSR Budget in excess of USD 16 Million over the first 10 years ofoperation.
Technova CSR Programme
Education - Focus 1Scholarships for selected performing students in the local community
Technova Adopt-A-School Programme
Community Enlightenment on Education and its benefits
Interventions in aiding the access to education within communities around the Technova Steel Industrial Park
Access to clean water - Focus 2Provide Boreholes at Strategic locations
Community Enlightenment on sanitary Practices
Facilitation of sustainable provision of clean water to communities around the Technova SteelIndustrial Park through dialogue and liaising with relevant government agencies on behalf of thecommunity
Power- Focus 3Power will be supplied to the local community for free at the commencement of the 30MW Power project
SOCIAL IMPACT Phase 1 Phase 2 Phase 3
Full Staff 35 175 350
Contract staff and semi-skilled staff 60 130 250
Staff of Support Businesses 70 180 500
Spin-off Businesses staff 150 750 2400
Total Annual Wage Bill per phase $ 600,000.00 $ 3,000,000.00 $ 4,000,000.0
Estimated Annual Volume of Support Business per phase $ 4,000,000.00 $ 15,000,000.00 $ 20,000,000.00
Estimated Annual Volume of Spin-off businesses per phase $ 2,000,000.00 $ 6,000,000.00 $ 8,000,000.00
Total Number of families affected by Technova Industrial Park directly 315 1,235 3,500
Total Number of Nigerians benefiting(at 5 people per household) 1,575 6,175 17,500
Corporate Social Responsibility
Social Impact
Employment
14
The Group has a robust training plan for both skilled andunskilled labour. Currently, the Group has trained 12previously unskilled local staff in plant assembly using theTechnova team and its foreign technical partners in the firstbatch. The trainees were directly involved in theconstruction of the Technova specialised coating shed. Thetrainees will be issued with certificates at a ceremony to beheld in the next month. Also, a database has been createdfor all trainees to ensure that they will have a first refusal onall related technical needs by Technova. There is norequired qualification for the program. However, there is anage restriction.
Technova also has a robust training programme for allemployees which guarantees technology transfer. Allforeign technical staff are designated with at least two fulltime Nigerian staff. The designated staff are expected tounderstudy the expatriates for a maximum period of oneyear or more as required. The contracts executed withforeign expatriates clearly stipulates that they are expectedto train at least two Nigerians to fill their roles.
Technova has partnered with a foremost Nigerian trainingand Skill development firm to provide Technical training andto provide training on leadership and personal developmentfor all staff.
Social Impact
Capacity Development
Technova CSR Programme
15
Semi skilled Technova trainees on site constructing the coating shed. The foreign facilitator from FMT Pvt Ltd is the man on top of the shed.
Social Impact
Capacity Development
Technova CSR Programme
16
Some of the Certificates to be presented to 12 Nigerians that were given 6 monthspaid on-the-site-training in Prefabricated Steel Shed structure erections andassembly by FMT PVT Ltd and their expatriate team during the construction ofTechnova 200metre by 33metre Steel Pipe Coating Shed at the Technova IndustrialPark. The participants were previously unskilled Nigerians who were selected fromthe host and neighbouring community.
MANAGEMENT PROFILE
Engineer Norbert Oleah
Engr Akin Ogundare
Mr Vijay Dabhole
Mr Vishwas Jadhav
Mr Vinod Sauhta
Mr Pradyuman B. Patel
Engr Ikechukwu Ezenwanne
Engr Odianosen Omonmhenle
Mr Chukwuka Agholor
Management Profile
Engr. Norbert C. Oleah
Group Chief Executive Officer
Engr. Norbert C. Oleah is a dynamic goal getter and pace setter with over 15years cognate experience in the field of engineeringservices and is the founding CEO of Technova Africa Group (TAG).
He started his career at Atlantic Oil Company Limited in 1994 as a student/marketer and then joined Automobile Doctors Inc in1998 were he was appointed Marketing/Business Development executive . He later became Business Services Manager in 2000up until 2002. In 2003, Norbert was appointed the Managing Director/CEO of SafetyCom Global Systems Limited.
SafetyCom Global Systems Limited is an Occupational Safety, Health, Environment and Engineering(OSHEE) Services company.Engr Oleah spearheaded SafetyCom to become the arguably the largest OSHEE Company by market share; servicing theTelecoms sector which included the construction of cell sites etc. He later resigned in 2008 to found Technova Africa Group(TAG).
Engr. Oleah sits on the board of a few companies namely: Technova Construction Nigeria Limited (TCNL), Technova EnergyNigeria Limited (TENL) and Technova Energy East Africa Limited (TEEAL Uganda)
He is a graduate of Electrical Engineering from the Prestigious University of Lagos, Nigeria.
Management Profile
Akinola Ogundare
Group Technical Director
Akinola Ogundare is Technical Director for TAG. He has over 18 years of international industry experience in the oil and gas industry assuming field and technical engineering leadership roles with Shell Petroleum Development Company, Nigeria and BP International. He has worked in various lead engineering roles in Angola, Libya, United Kingdom and Trinidad & Tobago. He has engineering specialization in the field of Well Drilling, Completions and Productivity Optimization with special emphasis on Deepwater, HPHT, Tubular Design and Equipment Quality Assurance.
Akinola has also worked in leadership positions across the globe for BP International. He has a track record of strong delivery byleading multi - national and multi-disciplinary teams of drilling, completions and subsurface engineers to deliver BP's Greater Plutonioproject in Angola and the Juniper Project in Trinidad.
Akinola has a keen understanding of the oil business and has a track record of continuing focus on the "bottom line" and striving todeliver value for stakeholders. He has a penchant for Excellence and Safety and a strong reputation for developing capability in youngupcoming engineers.
Akinola has Bachelors of Engineering degree in the field of Chemical Engineering from the University of Benin, Nigeria.
Management Profile
Akinola Ogundare
Group Technical Director
Akinola Ogundare is Technical Director for TAG. He has over 18 years of international industry experience in the oil and gas industry assuming field and technical engineering leadership roles with Shell Petroleum Development Company, Nigeria and BP International. He has worked in various lead engineering roles in Angola, Libya, United Kingdom and Trinidad & Tobago. He has engineering specialization in the field of Well Drilling, Completions and Productivity Optimization with special emphasis on Deepwater, HPHT, Tubular Design and Equipment Quality Assurance.
Akinola has also worked in leadership positions across the globe for BP International. He has a track record of strong delivery byleading multi - national and multi-disciplinary teams of drilling, completions and subsurface engineers to deliver BP's Greater Plutonioproject in Angola and the Juniper Project in Trinidad.
Akinola has a keen understanding of the oil business and has a track record of continuing focus on the "bottom line" and striving todeliver value for stakeholders. He has a penchant for Excellence and Safety and a strong reputation for developing capability in youngupcoming engineers.
Akinola has Bachelors of Engineering degree in the field of Chemical Engineering from the University of Benin, Nigeria.
Vishwas Jadhav
DGM- Projects
Vishwas Jadhav has a 20 year experience in Manufacturing and Engineering. He has commissioned three Coating Plants in variouslocations till date. He has extensive experience in electrical installations, technical documentation, manufacturing and mechanicalworks. He has a B.E ( Electronics)
Corporate profile
21
Vinod Sauhta
DGM- Operations
Vinod Sauhta has been with PSL for 13 years. He has vast experience in plant maintenance, operations and production. He has aD.E Electronics.
Management Profile
Vijay Dabhol
Chief Technical Officer
Vijay Dabhol has a 25year experience in Manufacturing and Engineering. He has been with PSL for 17years at the Corporate Office.He has vast experience in Procurement of Capital Equipment and Raw Materials, Taxation, Project planning, InternationalMarketing, Business Development and Client Coordination .He has a B.Eng. ( Electronics) from a University in India.
Project Engineer
Ikechukwu Ezenwanne
Ikechukwu Ezenwanne is an energy and environmental engineer(MSc) trained atthe prestigious University of Sheffield, UK with a background in general civilengineering(B.Eng) His professional career began in Port Harcourt RefiningCompany Ltd where he was charged with wastewater analysis for BOD andgeneral structural maintenance.Subsequently, he moved on to the Nigerian Gas Company Ltd also subsidiary ofthe Nigerian National Petroleum Corporation (NNPC) where he worked as anAssistant Project Engineer and was actively involved in the expansion ofExcravos - Lagos gas pipeline project(still ongoing) by Zakhem construction Nig.Ltd. He has had experience in contract bidding and evaluation procedures andhe was charged with the responsibility of providing information on bill ofengineering measurement for in-house cost estimate for contract bidding atZakhem Construction Nig Ltd. While in the United Kingdom, he developedinterest in occupational health and safety and added the InternationalManagement of Health & Safety (NEBOSH) certification to his portfolio.Recently, Ikechukwu moved to Technova Africa Group as a project engineerwhere he is spearheading a 30MW power generation project at TechnovaIndustrial Park in Ologbo, Edo State. He is presently managing line pipeprocurement projects with a combined worth of over $5 million dollars. So far,he combines his function with major technical and proposed commercial sale ofexcess electricity into the national grid through Benin Di2st1ribution Company.
Management Profile
Pradyuman B. Patel
Technical Consultant
Mr. Pradyuman B Patel has 38 years of experience in basic and detailengineering, project planning, pre-commissioning, commissioning andoperation in the field of oil and gas, petrochemicals, utilities & power,Offsite Tank farm and liquid product evacuation by pipelines and sea. Hehas worked with various Indian and international consulting firms during hiscareer. He has hands-on experience in all aspects of conceptual designthrough to final installation and start-up of SPM and offshore/ onshorepipelines, onshore installations like storage tanks, pumping stations etc.
Mr. P B Patel's experience also includes a large 25 MTA Refinery anddownstream petrochemical project in India wherein he played a key role inthe execution of complete offsite and utility system of the refinery fromBasic Engineering to commissioning and operation. He was also responsiblefor the SPM and pipeline project of Indian Oil Corporation of India, whichwas established at Mundra, India. He has worked in various capacities fromProject Engineer to Vice President - Projects.
He has a Master of Technology (Thermal Power Engineering), IIT Bombay 66and a B.E. (Mech.), M.S. University of Baroda, 1964
Management Profile
Chukwuka Agholor
Project Accountant
Chukwuka Agholor is a qualified chartered accountant with asound accounting background obtained from the the Universityof Benin. He has over 9 years cognate experience in the Oil andGas industry. His career began in the Audit firm of Okoro Wilson& Co., Chartered Accountants where he rose to become theAudit Supervisor before moving to Obax Worldwide Ltd, wherehe functioned as a Senior Accountant overseeing the finance andcosts related to projects undertaken by the company.He is currently the Project Accountant for Technova Africa Group.
23
Facility Operational Support
The coating facility is being installed and will be operated by iSAM HWS India Private Limited . The steel pipe coating equipment is being manufactured by two renownedGerman companies, Haane Welding Systems GmbH & Co KG and iSAM AG to the specifications required by iSAM HWS India Private Limited . iSAM HWS India PrivateLimited will operate Technova's factory for an initial two years. Haane Welding Systems GmbH &Co KG and iSAM AG will provide integrated technical management,training and support for the coating plant.
iSAM HWS India Private Limited (IHI)
iSAM HWS India Private Limited is one of India's largest producer of HSAW pipes; the line-pipe industry'spreferred pipe. The Senior Management of iSAM HWS India Private Limited have worked with PSL Limited.for over 15 years each. PSL Limited is one of India's largest producer of HSAW pipes; the line-pipe industry'spreferred pipe with production capacity of over one million metric tons. They are also one of the largestpipe manufacturers in Asia with 12 pipe mills strategically based in coastal locations of Chennai, Kandla,Vishakhapatnam, Ahmadabad, Jaipur, Daman and Sharjah; each with an annual production capacityexceeding 1,175,000 MT per annum.IHI's facilities are backed by sound technology, state-of-the-art infrastructure, technical collaborations withleading Design & Engineering consultants from Germany and Italy. IHI provides turnkey solutions, set up pipemanufacturing & coating plants from the Greenfield stage, proffer critical inputs and implementationmanagement for plant layouts, supply infrastructure needs, utilities etc.IHI's wide experience in setting up Coating Plants for PSL Limited from Greenfield stage will be of substantialadvantage to TAG's project.
Technova Coating Directors, Engr Norbert Oleah and Mr Victor Legogieon a visit to PSL Pipemill Factory and Coating Facility In India.
24
PSL limited
25
Facility Operational Support
Haane Welding Systems GmbH & Co KG and iSAM AG
Two world renowned German equipment manufacturers, Haane Welding Systems GmbH & Co KG and iSAM AG, have joint forces to offer industry solutions for Coating Plants
and production of large diameter pipes for demanding applications in oil and gas distribution. They offer high productivity solutions for coating plants and pipe mills. Haane
Welding Systems GmbH & Co KG and iSAM AG will be supplying all the equipment for the Coating Plant. Also, they will be providing support and training for staff on the
equipment usage and maintenance. Haane Welding Systems GmbH & Co KG and iSAM Ag have jointly supplied and worked with some of the world's best firms such as
ArcelorMittal (The Netherlands), Jindal Saw Limited ( India), PSL Ltd ( India), Corinth Pipeworks (Greece), Berg Steel Pipe Corporation ( USA), Eisenbau Kramer GmbH (
Germany) and Salzgitter Mannesmann Grobroh ( Germany) See www.haane.de and www.isam-ag.de for more information.
25
Coating Equipment OEM Partner
Bauhuis B.V.
Bauhuis B.V. is specialised in the design and supply of turnkey installations for handling, blasting and coating of steel pipes. With 40 years of experience, Bauhuis has built an impressive
track record in supplying high quality equipment all over the world. Many of the world's largest pipelines in operation today have been successfully coated in coating plants equipped by
Bauihus.
Bauhuis will be supplying Technova's 3LPE and Concrete Weight Coating equipment. Technova has also signed an agreement with Bauhuis for Facility Operations & Maintenance for the
first year of operations.
PSL limited
26
BASE PROJECT- TECHNOVA LINE PIPEMILL NIGERIA LIMITED
a 100% Nigerian owned company and a member of Technova AfricaGroup.
constructing a 200,000 MTPA 2 Step Spiral Hellically Submerged Arc Welded Pipemill (HSAW) in
Ologbo, Edo State.
The Plant is expected to be operational by Q1 2018.
Construction of shared facilities for the Pipemill has commenced with the construction of the 15
apartment residential facility (70% Complete), a two storey recreational facility ( 60% Complete), a
medical facility ( 85% Complete), a one storey steel project office ( 100% complete and operational),
2 boreholes, a perimeter wall amongst other facilities. A 1KM by 30 metre dual carriage road has also
been purchased by Technova to ensure that the host community is not inconvenienced by heavy load
movements to and from the TechnovaPark.
Technical documentation and Front End Engineering Design has been concluded. This was
undertaken by PSL Ltd. PSL ltd is one of the foremost Pipemill companies in the world. They recently
got acquired by JINDAL group, a publicly listed Indian Group with extensive worldwide interests in
STEEL, Power and Manufacturing.
The HSAW pipes are used for gas pipelines .
Technova commissioned PSL Limited to provide Technical Supply Documentsfor the Proposed Pipemill. A 123 Page report, amongst other reports wasprovided.
Project Technical Studies Undertaken
Technova commissioned Gemmaxx Integrated Engineering Company Limited,a foremost indigenous engineering firm, to provide a report which will aid inunderstand the substructure of the land being used for the part in order to beable to determine the suitability of the land for the infrastructure proposed tobe put on it. A detailed 107 page report was submitted after extensive testsand research was conducted by the Gemmaxx team.
Technova commissioned PSL Limited to provide Power and Utilitydocumentation for the proposed Pipemill. A 55 Page report, amongst otherreports was provided.
Project Technical Studies Undertaken
29
capacity to about 30% by 2017
800,000.00 ,89%
• SCC is the only Line Pipe producer in Nigeria with an annual capacity of 100,000MT
in a country where the annual demand is about 900,000 MT
• Technova's 200,000 MT pipe mill will increase Nigeria's in-country production
Now
100,000.00 ,11%
SCC Ltd
Annual Pipe Import
200,000.00,20% 100,000.00
, 10%
700,000.00 ,70%
Technova
SCC Ltd
Annual Pipe Import
2018
• About 12,714 km length of pipelines in Nigeria, spread equally across crude, gas and refined products
• IOCs own at least 40% of either crude oil or gas pipelines; PPMC owns all pipes for refined products
Demand Analysis
31
31
• a 100% Nigerian owned company and a member of Technova AfricaGroup.
• Constructing a 1,000,000 SqM Coating Facility in Ologbo, Edo State.
• Facility expected to be operational by Q3 2017.
• Construction of the plant has commenced with the Equipment Shed being80% complete already. The Equipment Shed has a 203Metres by33Metres dimensions.
• The Plant will be run for an initial period of 1 years by a team of GermanCompanies through their wholly owned Indian Subsidiary; IndianCompany, IHI Pvt Limited, who is also the supplier of the equipment. TheEquipment is being manufactured by the German Joint Company, HaaneWelding and ISAM Ag.
ANCHOR PROJECT- TECHNOVA COATING FACILITY NIGERIA LIMITED
Strategic Relationship Summary
33
Nigerian Content Development& Mon.Board
Providing a partial Guarantee for all loans required by Technova Coating and ensuring that there is demand for Technova's services
Bauhuis B.V.
Plant Operator for Initial 1 year
Bauhuis B.V.
Dutch Equipment Suppliers
wholly owned subsidiary
34
Nigerian Content Development& Mon.Board
Providing a partial Guarantee for all loans required by Technova Coating and ensuring that there is demand for Technova's services
IHI Pvt Limited
Plant Operator for Initial 1 year
Haane Welding & ISAM
German Equipment Suppliers
wholly owned subsidiary
Strategic Relationship Summary
Industry Analysis
Nigerian Oil and Gas Industry
Nigerian Steel Pipe Coating Market
• According to a 2011 SHELL commissioned report on Pipemill Feasibility Study, the total demand for steel pipes between 2011-2017 is 4.5MillionMetric Tonnes, with 2.3Million Metric Tonnes between 2015-2017. Technova Africa Group is constructing an Industrial Park at Ologbo, Edo State.
• All Pipes need to be Coated before usage. There is an absolute market for Coating; the Federal Government of Nigeria has stipulated that all coatingoperations must be done within Nigeria. No Imported Pipes are allowed in Nigeria.
• Historical Data indicate that there is an average requirement of 13 SqM for every Metric Tonne of Steel Pipe currently being utilised by the IOCs.Hence, there Steel Pipe Coating for 2015-2017 is 29.7Million SqM.
• Currently, the only functional Coating Facility in Nigeria is Pipe Coaters Ltd which has a capacity of 600,000 SqM per annum. Pipe Coaters Ltd is ownedby Tenaris .
• Ascot is also testing their refurbished Coating Plant .
Page -34Confidential Technova Coating Facility Nigeria Limited Loan Request
Market Opportunity Competition Analysis Summary
• The estimated demand for welded line pipes is about 550,000 tons perannum over the next five (5) years.
• Nigeria is estimated to have over 187tcf of natural gas,; the largest reservein Africa.
• Domestic demand for welded pipes and coating to continue to increase dueto expansion of internal network of gas transmission pipelines and the newinvestments in gas fired Independent Power Projects
• Technova will be one of the few coating facilities available fora fair guaranteed market.
•The Market Competitors such as Pipe Coaters Ltd cannot meet thecurrent demand from the IOC.
Still, the demand is going to increase as the IOCs, the Government Gasplan and several other projects will require coating for their pipes
Company Analysis
Unique Selling Points
The Company is 100% Nigerian owned and enjoys the unalloyed support of theNigerian Government through the Nigerian Local Content Development Board andall other agencies.
The Coating Facility Site is located strategically close to gas-availability and to apossible Jetty. Both of these guarantee that the site can get gas for its power andalso move the products to the IOCs or any client by sea.
The Company promoters are not politically exposed.
The government of Nigeria has banned the importation of Coated Pipes. Hence, allcoating services have to be done in Nigeria as it is an absolute market.
The Nigerian Gas plan and several IOC projects, Water Infrastructure Projectsguarantee that the country demand for HSAW pipes and Coating services will grow.
The Company has a strong and knowledgeable team comprising of experiencedLocal Personnel, experience Plant Operators and Specialist equipmentmanufacturers.
The Company's Coating Capacity of 1,000,000 SqM per annum can be scaled up tomeet increased future demand.
36
Page -36
SITE OPERATIONS
37
• Site Survey
•Site Plan
•Ongoing Site work
•Steel Coating Shed
•Project Office
•Site Facilities
•Residential Building
•Recreational Building
•Medical Building
Operations
38
Site Sruvey
Site Survey for 150 Acres
Operations
39
Site Plan
Coating Shed Construction
Site Plan
As at 28th January 2015
24TH April 2015
Operations
40
Ongoing Site work
Coating Shed Construction
As at 28th January 2015
41
24th April 2015
Ongoing Site work
Coating Shed Construction
Operations
As at 28th January 2015
42
24th April 2015
Ongoing Site work
Coating Shed Construction
Operations
As at 28th January 2015
43
24th April 2015
Ongoing Site work
Coating Shed Construction
Operations
As at 28th January 2015
44
24th April 2015
Ongoing Site work
Coating Shed Construction
Operations
45
24th April 2015
Ongoing Site work
Coating Shed Construction
Operations
46
4th June 2015
Ongoing Site work
Coating Shed Construction
Operations
47
9th June 2015
Ongoing Site work
Coating Shed Construction
Operations
16th June 2015
48
Ongoing Site work
Coating Shed Construction
Operations
49
22nd July 2015
Ongoing Site work
Coating Shed Construction
Operations
50
22nd July 2015
Ongoing Site work
Coating Shed Construction
Operations
51
22nd July 2015
Ongoing Site work
Coating Shed Construction
Operations
52
14th Sept 2015
Ongoing Site work
Coating Shed Construction
Operations
15th Sept 201552
Ongoing Site work
Coating Shed Construction
Operations
which is being used as•Customized containers on 2 levels temporary site office
•2NOS Vehicular roller stell gates which will be the main entrance and exit of Technova drive.
•Perimeter fence at the frontage of Technova Park.
•Fabricated Steel Columns for Coating Plant
54
Ongoing Site work
Coating Shed Construction
Operations
•Residential Building for Coating Plant and Pipemill Plant key Personnel
•Recreational Facility for Coating Plant and Pipemill Plant Personnel
55
Ongoing Site work
Coating Shed Construction
Operations
•Medical Facility for Pipe Mill & Coating Plant Personnel.
56
•Coating Plant Columns being painted
Ongoing Site work
Coating Shed Construction
Operations
•Medical Facility for Pipe Mill & Coating Plant Personnel.
•The 1km by 33 metre private road ( Technova Drive) and the entrance to the Drive. The Technova Park's gate is at the far end of theTechnova Drive. 56
Ongoing Site work
Coating Shed Construction
Operations
57
SITE VISITATIONS
• Groundbreaking Ceremony on 27th June 2013
• 1st Oversight Visit on 4th October 2013
• 2nd Oversight Visit on 25th July 2014
• NAPIMS & Shell Visit on 17th June 2015
• Total E&P Limited Visit on 24th June 2015
• Federal Ministry of Industry, Trade and Investment Visit on 10th December 2015
• Office of the Vice President Visit on 8th February 2016
•
Historical Events
Hon. Asita Honourable, the Chairman committee on Local Content, Federal House of Representative breaking the ground at the ceremony.
The groundbreaking ceremony of the Coating Plant and Pipemill facility took place on the 27th of June, 2013 in Ologbo, Edo State, Nigeria .The ceremony recorded the attendance of a good number of IOC stakeholders and regulatory bodies.
The GMD of Technova Africa Group Ltd; Engr. Norbert Oleah,welcoming M.D.SNEPCo; Mr Chike Onyejekwe, Chairman committee on Local Content, FederalHouse of Representative; Hon. Asita Honourable and GM Nigerian ContentDevelopment Shell; Mr Igo Weli, to the ground breaking ceremony.
From L-R: Yinka Sokoya - Manager Local Content Chevron, Norbert Oleah - GMDTechnova Africa Group Ltd, Chike Onyejekwe - Managing Director SNEPCo, FrancesOmaruaye-Manager Local Content Addax Petroleum, Igo Weli-GM Local ContentShell, Tunde Adelana-Director of Planning NCDMB and Segun Adebayo-Head, LocalContent SPDC at the ground breaking ceremony.
The Executive Secretary, Nigerian Content Development and MonitoringBoard (NCDMB), Engr. Ernest Nwapa who represented the Minister ofPetroleum Resources, Dr (Mrs) Diezani Alison-Madueke.
Groundbreaking Ceremony
Corporate profile
59
From L-R: Hon Asita Honourable (Chairman Committee on Nigerian Content Development (NCD), Federal House of Representatives Nigeria), Mr Igo Weli (General Manager NCD, SHELL), Mr Olusola Ogunsakin ( General Manager NCD, Exxon Mobil), and Mr Raymond Wilcox (General Manager NCD, Chevron) making their address during the Oversight visit.
Historical Events
The oversight visit made to TAG's Industrial Park on the 4th of October 2013 by the Chairman Committee on Nigerian Content Development, Federal House of Representatives and stakeholders from the IOCs.
Cross section of guests being led into the construction site of TAG's Industrial Park
From R-L: Igo Weli (GM Nigerian Content, Shell), Callista Azogu (GM NigerianContent, Agip), Chairman House Committee on Local Content, Hon. AsitaHonourable, Raymond Wilcox (GM Nigerian Content, Chevron), Olusola Ogunsakin(GM Nigerian Content, Exxon Mobil), Peter Ocheibi (General Electric), ChikeOkonkwo (General Electric) and representatives from Zenith Bank at the over-sightvisit.
First Oversight Visit
60
61
Historical EventsSecond Oversight Visit
62
Historical EventsSecond Oversight Visit
63
Historical EventsSecond Oversight Visit
From L-R: Maurice Iwhiwhu (NCD Adviser, SPDC), Chris Amake (ProjectManager - Edo Projects, Technova Africa Group), Adebowale Arinde(NAPIMS Material Office, NNPC), Victor Legogie( GED, Technova AfricaGroup), Ojior Osikhena( Head NCD, SPDC), Tayo Banjo (Chief OperatingOfficer, Technova Coating Facility Nigeria Limited) and OdianosenOmonmhenle (Senior Project Engineer, Technova Africa Group)
Historical Events
On, 17th June 2015, NAPIMS and SHELL Nigeria sent their representatives to visit Technova's Park
The Napipims and Shell team go on an inspection of the Site.
NAPIMS/ SHELL Visit
64
From L-R: Temitope Runsewe (Finance & Strategy Adviser, Technova Africa Group), MrOlabode Ajakaye( Nigerian Content - Total E&P Nigeria Limited), Mr Sylvester Iduseri(Capacity Manager-Nigerian Content, Total E& P Nigeria Limited), Mr Godwin Barika (GeneralManager- Nigerian Content, Total E&P Nigeria Limited), Odianosen Omonmhenle (SeniorProject Engineer, Technova Africa Group) and Tayo Banjo (Chief Operating Officer, TechnovaCoating Facility Nigeria Limited)
Historical Events
On, 24th June 2015, Total E&P Nigeria Limited sent their representatives to visit Technova's Park
The Total team go on an inspection of the Site.
TOTAL E&P Visit
65
The Minsitry of Trade and investment delegates go on an inspection of thePark and its facilities.
Historical Events
FEDERAL MINISTRY OF INDUSTRY, TRADE AND INVESMENT
On, 10th December 2015, The Honourable Minister of Industry,Trade and Investment sent a highlevel delegation to visit pay an inspection and advance visit to Technova's Park.
From L-R: Mr. Augustine Obi (Project Manager, Technova Africa Group),Engr John Aboe ( Assistant Director, Federal Ministry of Industry, Trade andInvestment), Mr. Adewale Bakare (Deputy Director -Steel Development,Federal Ministry of Industry, Trade and Investment), Mr. Victor Legogie (Group Executive Director, Technova Africa Group), Mr. Temitope Runsewe(Finance & Strategy Adviser, Technova Africa Group), Mr. Innocent Umoru( Edo State Coordinator, Technova Africa Group)
66
Historical Events
From L-R: Mr. Kabir Aregbesola (SSA to the VP, Technology & Innovation), Mr. Afolabi Imoukhuede (SSA to the VP, Job creation & Youth Employment), Mr. Ikem Isiekwena, (VPSpecial Assistant), Mr. Tope Runsewe, (Finance & Strategy Adviser, Technova Africa Group) and Mr. Innocent Umoru ( Edo State Coordinator, Technova Africa Group)
On, 8th February 2016, three Senior Special Assistants from the office of The President came on aninspection visit to Technova's Industrial Park.
OFFICE OF THE VICE PRESIDENT OF FEDRAL REPUBLIC OF NIGERIA
67
+234 909 178 7059, +234 803 201 1375, +234 802 397 8608, +234 803 334 8408