Bayo Ojulari, managing director of Shell Nigeria Exploration and Development Company (SNEPCo), says about seven more floating, production, storage and offloading vessels (FPSO) will be built in the next 15 years.
This, he said, will be the multiplier effect of the Egina FPSO that had some of its components built locally.
Speaking on Friday during the inspection tour carried out by Acting President Yemi Osinbajo, Ojulari said constructing vessels locally would save the country foreign exchange and money spent on contract costs.
He said the federal government’s support for the Egina project would have improved investor confidence in carrying out such projects in the country.
“What it means is that with that level, I see about seven FPSO’s in the next 15 years. That’s the multiplier effect. If we build on what we have established here, with that lower cost base that makes us more competitive both in Africa and other parts of the world, we can then attract investments to execute those activities,” he said.
“What that means is that with the Bonga South West project, we’ve been able to take over one billion dollars out of that project.
“We are currently looking at extending the life of that FPSO for another 10 years, that’s what we’re working on now.
“In supporting that FPSO, LADOL has been providing minimal support for us.”
In his remarks after touring the huge FPSO, Acting President Osinbajo said the Egina project showed the need for the federal government to continue to ensure an enabling environment for businesses to thrive in the country.
“This project just as an example is a $16 billion project. In Naira terms, that is about five trillion. The entire Nigerian budget is nine trillion. Our spending on infrastructure, which is the highest in the history of Nigeria was N1.5 trillion,” Osinbajo said.
“This project is several times more than the entire federal infrastructure budget. And we’re not talking about states, we’re just talking about federal investments in infrastructure. We should ensure that we have an enabling business environment such that it makes sense for people to invest here.”
According to Ahmadu-Kida Musa, deputy managing director, deep water at Total Exploration and Production Company Nigeria, Egina project is expected to be completed in Q4 2018 within the initial budget of $16 billion.
The vessel is a newly built spread moored FPSO with the length of 330m, width of 61 metres and depth of 33.5 meters. It will be connected through subsea production systems to 44 wells consisting of 21 oil producers and 23 water injector wells via umbilicals, flowlines and risers.