The Nigerian Content Development and Monitoring Board (NCDMB) has lauded the effort of Korean shipbuilding giant, Samsung Heavy Industries (SHI), in the development of local content in Nigeria’s oil and gas industry.
NCDMB said Samsung Heavy Industries has positioned Nigeria as a hub for fabrication and integration of Floating Production Storage Offloading (FPSO) unit in Africa, citing the construction and integration of the FPSO for the Egina project.
The Executive Secretary of NCDMB, Simbi Wabote said the investment of Samsung Heavy Industries marked a major breakthrough in the industry.
“Under the local content implementation we have seen a major breakthrough with the massive investment by Samsung in Lagos.
“The successful construction and integration of the FPSO for the Egina project is worthy of mention, and this is a key success story and going forward this singular asset will bring about massive revenue to the country as we expect other African countries to take advantage of this facility than going outside the shores of the continent for FPSO construction,” Wabote explained.
“Samsung has proved to have efficiently transformed the country into FPSO construction hub, and recall we were doing this in Korea before now,” he stressed.
Why the FPSO project matters
The commendation for Samsung Heavy Industries is as a result of its record-breaking FPSO unit, which is the largest floating oil platform in the world and also achieved its first oil in the facility.
The FPSO project also became the first ever project to meet Nigeria’s demanding new standards for local content as attested to by the NCDMB. According to a report, out of the 18 modules in the Egina, six modules were fabricated in the various fabrication yards across the country, and integrated locally in the company’s yard in Lagos.
This is unlike the previous FPSOs, which were all fabricated and integrated outside the country. The project was said to have been successful due to the faith in Nigerian companies. It was disclosed that Nigerian parts had been exported outside the country.
“Nigerian parts and expertise were even flown to Samsung’s headquarters in Korea to be installed in the early stages of construction of the Egina before it was sailed to Lagos for final construction.
“This success story has been made possible through Samsung Heavy Industries’ belief in the potential of Nigerian companies and workers to deliver to their tough, exacting standards.
“Over 9.7 million hours of time have been spent by the Nigerian workforce with over 6,000 Nigerians in employment on the project at its peak via Samsung and its partners and subcontractors.
“Perhaps even more exciting than this direct opportunity for the best companies and workers is the potential it opens up for the country as a whole.
“As we all know, the oil and gas industry is growing across the whole of Africa and that means many more floating oil platforms and other pieces of large equipment need to be repaired, maintained and built,” the company said during the construction phase.
Changing the execution of offshore in Nigeria
Nicolas Terraz, the Country Chair and Managing Director of Total E&P Nigeria Limited said Total has set a new record for Nigerian Content by changing how deep offshore oil and gas projects were executed in the country.
It was also disclosed that Egina made history as the first FPSO unit to berth at an integration quay in Africa for installation of six topside modules that were fabricated in Nigeria. Terraz revealed that SHI completed eight million man-hours without any Lost Time Injury during the seven months that the FPSO spent at the yard in Lagos.
Note that Nigeria’s shores had been losing opportunity and investment before Samsung’s fabrication and integration yard (known as the SHI-MCI yard) was completed because most of the work was always done outside Africa.