Vice President Kashim Shettima, on Saturday, commissioned a $315m Floating Production, Storage and Offloading (FPSO) built in Dubai by privately-held Nigeria-owned oil company, Oriental Energy Resources Limited.
According to a statement by the VP’s spokesman, Stanley Nkwocha, the FPSO, which has a storage capacity of one million barrels, will kick off with an initial production of 17,000 barrels per day and later increase its production capacity to 30,000 bpd.
According to the statement, the vessel “is expected to depart for Nigeria in Q1 2025 and commence production at the Okwok Oil Field in the first half of 2025.”
Shettima who represented President Bola Ahmed Tinubu at the commissioning ceremony of the offshore asset at the Drydocks World Dubai Shipyard in Dubai, the United Arab Emirates, said the facility is more than just a maritime infrastructure project.
He described it as a symbol of national ambition and a testament to the success of President Tinubu’s reforms in the oil sector.
“This FPSO vessel is more than just a technological achievement; it is a symbol of Nigeria’s ambition and our readiness to meet global energy demands. Under President Tinubu’s leadership, we are witnessing the transformation of the oil and gas sector, which is central to our economic revitalisation efforts,” the Vice President said.
Shettima hailed the Executive Chairman of the oil company, Alhaji Muhammadu Indimi, for his leadership strides and contributions to the oil and gas industry.
“Over the decades, Alhaji Muhammadu Indimi has stood as a model businessman and symbol of excellence in the oil and gas industry. So, it’s not surprising that his vision has transformed Oriental Energy Resources Limited into a global phenomenon.
“This outcome testifies to what is possible when ambition is matched with perseverance and expertise. His journey reminds us that Nigeria is a land of opportunity, and with dedication, there is no limit to what we can achieve.”
Shettima further explained that as Nigeria’s home-based refineries come alive, vessels like this will be instrumental in maximising the nation’s production capacity and driving economic growth.
Alhaji Indimi revealed that the facility is the first FPSO to be fully funded by a Nigerian indigenous company.
He further said, “When operating at full capacity we expect the Okwok Oil Field to produce up to 30,000 barrels of oil a day, significantly enhancing Nigeria’s oil production and contributing to the government’s ambition to increase oil revenue to fund Nigeria’s development.
“The Okwok field is just one step towards our long-term ambition to deliver 100,000 barrels of oil per day of production in Nigeria. We have a strong set of proven assets and a development pipeline that can deliver it.“
What you should know
- The FPSO will increase Nigeria’s Crude Production by 17,000 bpd and later by 30,000bpd.
- Nigeria’s oil production in November 2024 was 1.4 million bpd, short of its OPEC quota of 1.5 million bpd.
- While the Organisation of Petroleum Exporting Countries (OPEC) urges most of its members to cut production in order to help it control global oil prices, Nigeria has expressed commitment in increasing its oil production and has set a target of over 2 million bpd for 2025.
- The vessel is scheduled to depart for Nigeria in Q1 2025 and begin production at the Okwok Oil Field in the first half of the year.
The VP was accompanied by the governor of his Borno State, Professor Babagana Zulum, and Governor Abdullahi Sule of Nasarawa State, among other public officials.
