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Issues In The News

$3.8bn Egina Project Takes Off in Apapa

The $3.8 billion Egina floating production storage and offloading (FPSO) situated at Lagos Deep Offshore Logistics (LADOL) base, Apapa has commenced operation.

This is sequel to a renewed pact between the technical facilitators, LADOL and Samsung Heavy Industries (SHI).

The two companies are expected to inject not less than $300 million into the creation of the new facility, which is expected to provide employment opportunities to many unemployed Nigerians.

The project earlier awarded to the two firms, is now taking off under a fresh Joint Venture (JV) partnership called, SHI-MCI Free Zone Enterprise.

Managing Directors of the JV, Dr Amy Jadesimi and a representative of Samsung, Mr. KS Lee, in a joint statement said construction of the facility is expected to last for 18 months adding that, once completed, it will be capable of fabricating 1,000 metric tonnes per month, as well as integrating all other FPSOs expected to be built in Nigeria for the next decades.

According to the partners, the project will generate an estimated 50,000 direct and indirect jobs in Nigeria over the next few years.

The project is in line with the provisions of Nigeria’s Local Content Act 2010, which mandates the domestication of up to 70 per cent of oil and gas activities, a move that is expected to put the country at par with Brazil, the world sixth largest economy.

Jadesimi and Lee described the project as “one of the largest FPSOs in the world, with a storage capacity of 2.3 million barrels, and a targeted production capacity of 200,000 barrels per day.”

According to them, billions of dollars that are currently spent overseas will be domesticated in Nigeria for the first time and billions of dollars in new revenues will be earned from market expansion. This increase in in-country capacity will position Nigeria to become West Africa’s hub, generate sustainable long term GDP growth required for Nigeria to become one of the world’s leading economies in line with vision 2020.

Stakeholders in the maritime industry said the siting of the project at LADOL Base, which has the strong backing of South Korea-based SHI, will boost local content in the country.

They added that the successful completion of the facility will significantly increase the sizes of the fabrication, engineering, procurement, training, design and raw materials such as steel and allied markets in Nigeria.
Furthermore, they said it would ensure that large vessels, including FPSOs, are integrated (partially constructed and assembled) in Nigeria.

They lauded the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, management of the Nigerian Nation petroleum Corporation (NNPC), the Nigerian Content Management Board (NCMB), and Total for ensuring the successful take-off of the project.

Nigeria's Minister of Petroleum Diezani Allison-Madueke speaks at a media briefing on a new gas price regime in the capital of Abuja

About TransformationWatch

TransformationWatch is an online news site founded by Henry Omoregie It is focused on keeping tabs on the Transformation Agenda set out by the Nigerian leadership in the Local, State and Federal Governments. My mission is to observe, analyze and report milestones or slowdowns in promised service delivery in all the facets of governance in Nigeria (2011 and beyond). Readership is open to all Nigerians and friends of Nigeria alike, regardless of Tribe, Religion or Political divide. We are all in this together

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