Nigeria’s oil and gas industry Wednesday, January 24, 2018, witnessed a milestone as the $3.3 billion Floating Production Storage Offloading (FPSO) unit for the 200,000 barrels per day capacity Egina Deepwater oilfield arrived the country from South Korea.
The Egina oilfield, which has been developed at the cost of $16 billion, would come on stream at the end of 2018. The FPSO, which was built for Total Upstream Nigeria Limited, (TUPNI) by Samsung Heavy Industries (SHI), sailed away from the quayside at Samsung Yard in Geoje, South Korea, on October 31, 2017, on its voyage to Nigeria.
Partners in the Egina project, the Nigerian National Petroleum Corporation (NNPC), Total Upstream Nigeria Limited, (TUPNI) CNOOC, SAPETRO and PETROBRAS, were on hand to welcome the oil offloading unit, when it berthed at the new 500-metre FPSO integration quayside at the Samsung Yard (SHI-MCI Yard), at the LADOL Free Zone in Lagos.
Speaking during the arrival ceremony, the Managing Director of Total E & P, Mr. Nicholas Terraz, said the six locally fabricated modules would be integrated into the FPSO at the Samsung Yard over the next six months before the FPSO sails away to the Egina field, adding that the local integration of the FPSO is a first for Nigeria and Africa.
He said with a length of 330 meters, the Egina FPSO is the largest FPSO ever installed in Nigeria and the largest FPSO built by the Total Group worldwide. According to him, the integration of the six locally fabricated topside modules before its final sail-away to the Egina field is a game changer as far as the execution of deep offshore oil and gas projects in the country is concerned.
He said it is also a remarkable achievement in local content development in Nigeria. “Being the first project to be launched after the enactment of the Nigerian Oil and Gas Industry Content Development Act in 2010, Egina is advancing Nigerian Content to new levels and has by far the highest quantum of local content completed for any oil & gas project in Nigeria, but also for Total’s projects worldwide.”
Terraz added that several technological feats have been recorded by the various entities involved in the Egina project. He said Egina is the deepest offshore development carried out so far in Nigeria, with water depths over 1,500 meters. Saying that the Egina operations will generate significant activities for local contractors, in various sectors and provide avenues for the training and development of Nigerians in various domains.
The Managing Director of the Nigerian Ports Authority (NPA), Hadiza Bala-Usman said that the arrival of the FPOS to Lagos has vindicated the federal government’s liberalization policy, adding that the NPA remains committed to ensuring that operators compete in a favorable climate. her words, “The industry has been liberalized; I believe we are all familiar with the monopoly around the oil and gas terminals. So for the FPSO to come to Lagos today shows that any investor can take any vessel to any oil and gas to any terminal in the country. Every terminal is free to receive oil and gas cargo and any FPSO and that enable all investors to have the comfort that there is no specific location that is designated for that purpose.”.
The Egina field was discovered by TUPNI in 2003 within the Oil Mining License (OML) 130, some 200 kilometers south of Port Harcourt, Rivers State. Samsung Heavy Industries had won the contract for the building of the FPSO at the cost of $3.3 billion after the bidding process, and as a commitment to building local capacity Samsung Heavy Industries Nigeria Limited together with its joint venture partner established SHI-MCI FZE (SHI-MCI) as a joint venture entity.
Six out of the 18 modules of the Egina FPSO were fabricated in Nigeria a first-timer for the Nigerian oil industry. It comes with a state of the art e technology. Samsung invested over $300 million for the construction of the fabrication yard and has committed to t training local capacity in shipbuilding and offshore plant manufacturing technologies.
The Egina project has set new standards for compliance with Local Content laws, the project has employed over 1,000 Nigerians.