The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has expressed satisfaction at the progress made at the construction of the Total Upstream Nigeria Egina’s FPSO at the Samsung Heavy Industry (SHI)’s yard in Geoje, South Korea.
Wabote who stated this after an inspection of the project last week, said in-country integration of the Egina Floating, Production, Storage and Offloading (FPSO) units at the SHI-MCI yard in Lagos will receive full collaboration from the NCDMB and ancillary agencies.
A statement by NCDMB, said the FPSO is scheduled to sail away in June 2017 and arrive SHI-MCI yard in Lagos, September 2017 where the six modules fabricated in-country will be integrated, with 21400 pre-commissioning tasks expected to be performed.
After integration, the FPSO will be towed to the Egina field, about 200 kilometers south of Port Harcourt, Rivers State and hooked-up for operation.
Wabote charged Total Upstream Nigeria (TUPNI) to identify issues that required the Board’s intervention for quick resolutions ahead of the arrival of the FPSO.
Such approvals, he explained, like authorizations for expatriates who would lead the integration, towing of the FPSO and other scopes, would guarantee smooth conclusion of the project.
He underscored the importance of the Egina project to the Nigerian economy, particularly the addition of 200,000 barrels to the country’s daily crude oil production. Egina will also contribute to the Federal Government's commitment to address production decline and shore up national revenue.
The Nigerian oil and gas industry needs more projects to build capacity and keep existing facilities from wasting, he added.
He hailed Total and SHI for their Nigerian Content credentials on the project, stating that “this happened because of the push by the NCDMB; even though Total was convinced, they still needed a little push.
“We are happy with the progress of the project and its contribution to Local Content and the national economy. FPSOs have been built abroad in the past and moved straight to site. This is the first time that many Nigerians will see what it looks like.”
Wabote explained that the NCDMB plans to organize a one-day knowledge sharing session on Nigerian Content, to enable international operating oil companies (IOCs) share strategies they deployed on their projects.
The session, he noted, would ensure that IOCs can leverage on Nigerian Content experiences of others when planning projects or faced with similar challenges.
Also speaking, Deputy Managing Director, Total Upstream (TUPNI), Mr. Ahmadu Kida Musa hailed the collaboration between the TUPNI and NCDMB teams on the Egina project and charged the Board to continue pushing the boundaries of Nigerian Content implementation.
He commended regulatory agencies that pledged to support the in-country integration phase, noting that “some of the things we will be seeing have not been done in Nigeria. We would need accelerated approvals, while not breaking the law.”
Besides NCDMB and other agencies which were on the inspection team were the Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Ports Authority (NPA), Nigerian Customs Service (NCS) and the Nigeria Export Processing Zones Authority (NEPZA).
On his part, the Managing Director of SHI-MCI, Mr. CW Kim, reaffirmed Samsung Heavy Industry’s preparedness to help Nigeria upscale its technological base. This philosophy informed the decision to make the long term investment, he said.
He said: “We decided to invest in Nigeria for the long term, not just for Egina. It would not make sense to invest for just one project; it needs several projects. We have capacity in construction and we have been in business for over 40 years. To succeed in Nigeria, we plan to be competitive and operate with a long term plan.”
The Egina field development consists of the FPSO, connected to the Subsea Production System via Umbilicals, Flowlines and Risers and Offloading Terminal.
In-country integration of the FPSO and fabrication of six modules of the vessel created 5000 direct jobs and 5000 indirect jobs. Increased domiciliation of future FPSO projects through the fabrication of more modules is expected to create additional jobs, estimated to reach 30,000.