NIGERIA’S OIL INDUSTRY GETS MASSIVE BOOST AS THE EGINA FPSO ARRIVES OUR SHORES

by Onyebuchi Ememanka
History was made two days ago for the oil industry in Nigeria as the first ever FPSO to be partly integrated in Nigeria arrived Lagos.
Built by Samsung Heavy Industries at the Samsung Goege Yard in Korea at a cost of 3.4 billion dollars, it is clearly the most eloquent statement of Nigeria’s commitment to implement the Local Content Act in our Oil and Gas Industry.
The massive Floating, Production, Storage and Offload facility with a length of 300 meters is owned by the TOTAL/NNPC Joint Venture and is the flagship project in the development of the Egina Oilfield, OML 130 which will add an additional 200,000 barrels of crude oil to Nigeria’s daily oil production. TOTAL is spending a little above 16 Billion Dollars to develop the field.
The vessel arrived the Samsung Mega Fabrication Yard at Ladol Island, Lagos from Korea after a 90 day sea voyage, towed by tug boats. The vessel has no engine for its propulsion. The engines will be fixed here in Nigeria.
Under the contract and pursuant to the provisions of the Nigeria Oil and Gas Content Act of 2011, major components of the FPSO including the hull were built by Samsung in Korea. With the arrival in Lagos, six additional topside modules already fabricated by a combination of Korean and Nigerian engineers will now be integrated into the vessel.
This is a historic feat for the Nigerian Oil and Gas Industry as this is very first time in our history that such major work will be done locally.
As part of the contract, Samsung built a 300 million dollar mega Fabrication Yard located at Ladol Free Trade Zone off the Atlantic Ocean and since the past two and half years, fabrication of the six topside modules have been on going.
To achieve the statutory local content component, Samsung entered into a Joint Venture Contract with the Ladol Group, a Nigerian company to form a Free Trade Zone Enterprise known as SHI-MCI FZE to build the fabrication yard, fabricate the modules and handle the integration of the modules onto the FPSO.
It’s a complex interplay between heavy engineering and cutting edge technology on a scale never witnessed in Nigeria ever before.
For me, I was overcome with a deep sense of nostalgia as I got the pictures last night, having been an integral part of this project for about four years.
I joined Samsung as Manager, Legal Services in 2013 and later was elevated to the position of Company Secretary/Legal Adviser. I took active part in leading in contract negotiations on a wide range of aspects of this work. Supported by the finest commercial law firms in Nigeria and an array of Senior Advocates, we cut fair deals for Samsung. My stay here remains clearly my biggest professional exposure as a lawyer.
From interfaces with key oil and gas industry regulatory agencies like the NNPC, NAPIMS, NCDMD, the Petroleum Ministry, NEPZA, NPA, etc to countless appearances before relevant committees of the National Assembly defending Samsung’s policies on this project, to countless court cases before Justice Okon Abang of the Federal High Court in Lagos, at a time when some faceless people wanted to frustrate this mega project using legal technicalities, to uncountable meetings with several stakeholders in the project, to several weeks and months of conflict resolution between Samsung and our local partners, Ladol, the long hours of conference calls, etc, this project turned my life around permanently. I saw the practice of law from a whole new perspective.
It was also a huge pleasure for me to ensure that an eminent lawyer like Professor Ernest Ojukwu, SAN played a key role for Samsung, providing his rich repertoire of experience to bear on our operations. Of course, my man Ikechukwu Uwanna and his Lagos law firm became our legal partner. These two people made me proud by the quality of work they did with me at Samsung.
It was therefore a huge shock to many people, especially those who understood the size of my work when I announced my resignation from Samsung, opting to return home and serve my people.
Most times, I just smile when I see some people who think that Ururuaja was a molue conductor in Lagos who lived under the bridge at Oshodi.
My MD then, even asked me to stay on till the FPSO arrives before I leave. I said No.
I feel proud and incredibly humbled that I was part of this revolution in the Oil and Gas Industry in Nigeria. The memories and experiences I garnered, the great friends that I made from across the globe, the networks I established, the exposure that I had, will all remain with me and continue to shape my life going forward. In particular, I learnt and imbibed an incredible work ethic. Working closely with these guys, it’s easy to see why there are so so far ahead of us. Their work ethic and dedication to duty are almost unbelievable.
I have no regrets whatsoever being at home. For me, staying with my people and serving them remains my greatest and boyhood dream. It’s been a hugely rewarding experience in the last one year and I march on with confidence and faith in God.
I wish my colleagues at Samsung well as they commence the local integration of the remaining six topsides modules. Every Nigerian who has been part of this project should be proud of what we achieved together.
And yes, I shall be in Lagos shortly to come and behold this massive engineering masterpiece that will sail hundreds of kilometers into the Atlantic Ocean and drill oil to further lubricate our economy.