By Tunde Osho
Nigeria’s oil and gas industry is set to record another milestone as the Floating Production, Storage and Offloading (FPSO) vessel has arrived in Nigeria from South Korea for oil production from the $16 billion 200,000 barrels per day capacity Egina deepwater oilfield.
The FPSO, which was built by Samsung Heavy Industries (SHI), sailed away from the quay side at Samsung Yard in Geoje, South Korea, on October 31, 2017, on its long anticipated journey to Nigeria, which was initially estimated to last for 90 days.
It was gathered that it arrived at the Samsung Yard (SHI-MCI FZE quayside) in Lagos on Tuesday.
Located in the Oil Mining Lease (OML) 130 offshore, the Egina oilfield, which will add 200,000 barrels per day of crude oil to Nigeria’s daily production when it comes on stream by the end of 2018, is being developed by Total Upstream Nigeria Limited (TUPNL) at the cost of $16 billion.
Out of the $16 billion capital expenditure (Capex) for the six packages in the oilfield development, $3.3 billion of this amount is earmarked for building the FPSO.
Speaking at the Samsung’s fabrication and integration yard located at LADOL Free Zone in Lagos, the Chief Financial Officer of SHI-MCI, Mr. Jin Su Park stated that the FPSO arrived Nigeria by 7a.m on January 23, 2017.
He noted that despite the numerous challenges that confronted SHI in the construction of the yard, the South Korean firm has successfully completed the yard, which is the first FPSO fabrication and integration yard in Africa.
According to him, Samsung Heavy Industries invested $300 million in the yard and achieved 777 days without Loss Time Injury (LTI) on January 19, being yesterday.