ESSO Nigeria has begun work on a US$23 million logistics base at the LADOL Deep Offshore Logistics Base in Lagos, in a move that reflects a broader shift toward handling more oil and gas operations within Nigeria.

The facility, designed as a permanent shorebase, will support offshore activities with new administrative buildings, warehouses and storage infrastructure. The project is being developed by ESSO Nigeria, an affiliate of ExxonMobil, in partnership with LADOL, one of the country’s key offshore logistics hubs.

Beyond the construction itself, the project is being seen by regulators and industry players as part of a longer-term push to deepen local capacity in Nigeria’s oil and gas sector, particularly at a time when global supply chains remain under pressure.

At the groundbreaking ceremony in Lagos, the Nigerian Content Development and Monitoring Board said the investment signals growing confidence in Nigeria’s ability to support complex offshore operations locally.

Speaking at the event, the Executive Secretary of NCDMB, Engr Felix Omatsola Ogbe, placed the development within the context of ongoing global disruptions, noting that instability in the Middle East has continued to drive up logistics costs and complicate supply routes across markets.

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“Today, we are pleased that Nigeria has an alternative,” he said, pointing to LADOL’s expansion as part of a gradual shift away from reliance on foreign logistics bases. He added that the country’s supply chain capacity has improved significantly compared to a decade ago, with more infrastructure now in place to support offshore projects.

Ogbe also used the occasion to draw attention to a persistent challenge within the industry, particularly for local service providers. He urged ESSO to adopt a front-end-loaded payment structure in its engagement with LADOL, arguing that delayed payments often create financing gaps that force Nigerian companies to depend on high-interest loans.

“I would like to encourage you to pay LADOL more. Make sure that it is front-end-loaded, so they can have money to finish this on time without having to go to the banks and pay high interest rates to get the job done,” he said.

According to him, cash flow constraints remain a recurring issue across the sector, with many Nigerian suppliers approaching the Board for support because project payment timelines do not align with execution demands. He stressed that improving funding structures is just as important as building infrastructure when it comes to strengthening local capacity.

For ESSO Nigeria, the project represents a continuation of its long-standing operations in the country. Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, described the development as a milestone investment in the company’s 70-year relationship with Nigeria.

He said the facility will enhance deepwater offshore capabilities while also supporting the growth of local expertise. Much of the construction work, he noted, will be carried out by Nigerian companies, creating opportunities across engineering, construction and commissioning.

The project also reinforces LADOL’s position as a central player in Nigeria’s offshore logistics ecosystem, with years of engagement across major oil and gas projects. Industry observers say investments of this nature are gradually shifting more operational value into the local economy, even as international operators remain key drivers of activity.

With representatives from government agencies, financial institutions and industry stakeholders present at the ceremony, the event highlighted a growing alignment around local capacity development. As global uncertainties continue to affect supply chains, projects like the LADOL shorebase suggest that operators are increasingly looking inward, investing in infrastructure that allows them to operate with greater control and flexibility within Nigeria.

Meiza Nigeria