The complexities of regulating FPSOs now confront Nigeria
Efforts are being intensified by Total Upstream Nigeria and its partners to complete the full integration of some modules onto the company's multibillion-dollar Floating Production, Storage and Offloading (FPSO) vessel before it sails to its final destination at the Egina oil field. The fabrication and integration are taking place at the LADOL Free Zone in Lagos, where the FPSO berthed on January 24, 2018 upon arrival from South Korea.
Members of the Senate Committees on Gas and Petroleum (Upstream) and House of Representatives Committee on Local Content have expressed satisfaction with the progress made towards getting the FPSO vessel fully operational. The vessel is expected to be operational in July 2018. The lawmakers have also commended the level of technology transfer being achieved through the project to enhance local industrial capacity.
The successful arrival of the giant FPSO to the territorial waters of Nigeria – from Samsung Heavy Industries' (SHI) Geoje shipyard in South Korea where it first sailed on October 31, 2017 – demonstrates the viability of the Nigerian maritime industry. With the international attention that the country's maritime sector has attracted with the Egina FPSO arrival, it is important that the sector is properly positioned to leverage emerging opportunities. Last month, Executive Chairman of LADOL, Ladi Jadesimi, disclosed that some West African countries have initiated discussions to use the island logistics base to develop their own offshore assets.