Total Egina FPSO
Total Upstream Petroleum Nigeria Limited (TUPNI) awarded the Egina Floating Production Storage Offloading (FPSO) vessel construction contract to Samsung Heavy Industries (SHI) in 2013. Since then, a number of additional packages have also been awarded. Contracts are now being awarded to equipment manufacturers who also demonstrate that a significant part of the work will be performed locally in line with the provisions of the local content act.
Hull and topside packages: Samsung is manufacturing the hull in South Korea; the FPSO contract award was conditional upon Samsung supporting the development of a new fabrication yard and topside integration facility in the Lagos Deep Offshore Logistics Base (LADOL) Free Zone as well as local fabrication of 15000 tons out of the total of 34000 tons required for the FPSO vessel.
Subsea packages: awarded to Saipem and FMC Technologies for contract values of USD 3 billion and USD 1.2 billion respectively; for Saipem the scope includes the oil production and water injection lines, jumpers, gas export pipelines, umbilicals, mooring and offloading systems; for FMC Technologies the scope includes subsea trees, wellheads, manifolds, installation tooling, flow line connection systems and associated control systems.
The Egina project is valued at USD 15 billion. It consists of 44 wells connected to the 2.3M barrel capacity FPSO with a 200 000 boepd processing capacity. First oil is expected in 2017. Total, with a 24% stake in the project, will operate the FPSO. China National Offshore Oil Corporation (CNOOC), Petrobras, Nigerian National Petroleum Corporation (NNPC) and South Atlantic Petroleum are partners on the project with 45%, 16%, 10% and 5% equity stakes respectively.
The Engineering, Procurement and Construction (EPC) market in Nigeria is well established. In country capability and capacity exists for performing sizeable offshore fabrication work in Lagos, Warri and Port Harcourt. Aveon Offshore, Nigerdock and Saipem are some of the largest indigenous fabrication companies with a proven track record. The majority of engineering work for all Egina packages is being performed in Nigeria. DeltaAfrik, the joint venture between indigenous Nigerian company DeltaTek Engineering and global engineering company WorleyParsons, is performing a significant portion of the engineering work locally.
Egina is the first major project carried out in Nigeria since the Nigerian Content Act was enacted in April 2010. This is a step change from a legal standpoint, as such legislation did not exist when contracting and procurement was conducted on previous FPSO projects such as the Total operated Akpo. The legislation is enforced and monitored by the Nigerian Content Development Monitoring Board (NCDMB). It requires foreign companies who bid for work to incorporate Nigerian content in their product and service proposals. In accordance with the new local content legislation, bids from companies with the highest level of Nigerian content for comparable technical and commercial offers are those selected by the client.
Adour International helps companies meet their local content obligations on the Egina project. We perform the required analysis and due diligence which enables clients to select the right companies to partner with, comply with local content requirements, meet technical specifications and optimise project time, quality and cost objectives.
Adour International supports customers from offices in Aberdeen (UK), Houston (USA), Lagos (Nigeria) and Paris (France). Please do refer to the CONTACTS section for more information on our locations:
Illustration credit: Total