Stakeholders in the oil and gas sector are in high hopes that the
Egina oil and gas project would be successfully implemented as
the construction of the $3.8 billion floating production storage and offloading (FPSO) platform is nearing completion.
The construction of the facility started in 2013 with the award of the contract to Korea engineering giant, Samsung Heavy Industry (SHI). The SHI was awarded the contract for the building of a world class oil production platform, while the Lagos Deep Offshore Logistics Base (LADOL) was its local content partner.
On completion, the platform, otherwise called Egina project is expected to provide direct and indirect employment opportunities for hundreds of Nigerians and facilitate maritime activities, sources familiar with the deal told THISDAY on Wednesday.
The government agencies and some stakeholders recently embarked on an assessment tour of the project to ascertain the extent of work.
Speaking at the project site in Tarkwa Bay, Apapa, Lagos, the Executive Chairman of LADOL, Mr. Ladi Jadesimi promised that the project would be completed soon.
The stakeholders, who expressed delight at the extent of the work included the Executive Secretary of NCDMB, Daziba Obah and Deputy General Manager of Total Musa Kida, representatives of other international oil companies (IOCs)- ENI, Chevron, Agip, Shell, and ExxonMobil- and top managers of Gulf Trade Bank (GTB).
The oil industry stakeholder told THISDAY that the FPSO ’’is indeed a game changer for the nation’s economy and capable of seeing the country leap into her quest of being in the G30 by the year 2020.’’
Kida, who described the project as the first of its kind in Africa said his company was proud to be associated with it.
He explained that Total’s support and confidence in bringing the project to the country was influenced by the Nigerian Local Content initiative, which was passed into law as the Nigerian Content Act 2010.
“Our visit today is very important. We are here to appraise work on our noble support for the Nigerian content …we have participated actively and supported fully the facility that you are seeing today. This is a clear demonstration that Total supports the law and the nation’s economy. This project is first of its kind in Africa, since none like this has ever been built in Nigeria or elsewhere in the region before.
“For Total, this represents not only our commitment to Nigeria…not just the cost, but it does represents a lot of money invested and this money is also a symbol of the fact that Total strongly believes the Nigerian Content is here to stay. It was a huge technical struggle in taking the risk to believe that this integration can indeed take place here or anywhere in Nigeria. Now it has remained our pride for taking this step, and we remain committed to it.”
He enjoined the federal government and other IOCs not to make the Egina fabrication “a one-off project” that will seize to attract other projects.
“This facility has been built to international standards and Total is very comfortable with work so far as we believe that base is capable of fabricating very huge modules that will be utilised in the FPSO. Egina installation will be side-by-side here by early next year, so it is going to be more impressive. My appeal therefore is that my colleagues in the oil industry should sustain this good beginning by ensuring that other FPSOs are done here at LADOL base” Kida said.
He called on the NCDMB to continue its supports for LADOL and SHI to ensure the aim of the project was.
On his part, Obah, recalled that LADOL, which is a 100 percent indigenous owned, was developed as a green field about ten years ago, but has grown into a world class logistics provider.
While expressing satisfaction at the level of work done at the site and the compliance to local content rules at the base, Obah called on other oil companies to key into the step taken by Total to boost local content in the oil industry.
He explained that the Board was well aware that the LADOL base through the FPSO project “is creating 5000 direct and 50,000 indirect jobs in the country…and this is a thing of pride to the country as a major player in world oil exploration business.
His words: “I look forward to seeing the 12 modules of the FPSO navigate out of this place in record time after completion. We heard they have good succession plans, and that the project is on schedule. We hope it will never die, as we thank all representatives of the IOCs for their words of commitments that they will do all within their powers to sustain it.’’