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As Egina FPSO sails to Nigeria in August, hope rises on oil earnings

Just as the multi-billion dollar Egina Floating Production Storage and Offloading (FPSO) vessel currently under construction in Geoje, South Korea, will begin its homeward sail to Nigeria in August, industry experts have started looking at what it add to the economy on delivery.

According to oil industry experts, the scheme will among other things create jobs and boost crude oil production by joining forces with Bonga and Forcados terminals to shut up oil output and sales.

The FPSO is being developed for deployment in the Egina oil field, located 150km off the coast of Nigeria. The field is currently under development and production is scheduled to begin in 2018.

The Egina Field when completed is expected to add 200,000 barrels per day to the national oil production.

Fresh hopes around the project were recently raised by the Director general of Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside who was in Korea for inspections of level of works done on the deep-sea platform.

He said whereas his agency has commenced preparations to receive the vessel amid tight security and safety procedures, the project, which is unprecedented in the history of Nigeria, will increase the knowledge base of NIMASA and ultimately fetch the country the much needed foreign exchange.

Peterside disclosed this during a meeting with the Executive Vice President of Samsung,Younsang Won, representatives of Total E&P Nigeria, and the Vice President in charge of Egina project, Yongho Jo, while on a working visit to inspect the project at the Samsung Shipyard in the Samsung Heavy Industries in Geoje, South Korea.

According to him, “This project is the first of its kind in Nigeria; it will increase our knowledge base of inspection techniques, certification and rules for maintaining classification and ultimately benefit the Nigerian economy in terms of foreign exchange.”

He also assured Total and other prospective investors that the Agency would continue to create a conducive environment to build investors’ confidence to enable them come up with more projects of this nature.

NIMASA boss further commended Samsung and Total E&P for having faith in Nigeria, and efforts to comply with the Nigerian Content Law. He however charged the Executive Vice President of Samsung to ensure compliance to the Cabotage Law and other enabling Nigerian laws when the FPSO berths in Nigeria.

Responding, Younsang Won promised that the FPSO will be ready for movement to Nigeria in August, and assured that the quality of the project will bear the mark of excellence associated with Samsung Heavy industries.

He promised to comply with local laws in Nigeria and do all within his powers to work with locals to build capacity in offshore projects industry.

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