Well-positioned to Win Projects in Africa
The world's largest floating oil production storage and offloading (FPSO) facility, built by Samsung Heavy Industries (SHI), has been completed in Nigeria and will soon start work at the neighboring offshore oil fields. It took five years for SHI to complete the large-scale offshore project, which it received from Nigeria in 2013..
SHI announced on August 27 that it has successfully completed the module production and installation work for FPSO Egina at the local production base in Lagos, Nigeria. The huge facility departed for offshore oil fields on August 26.
SHI established a local production enterprise, dubbed SHIN, in Lagos, Nigeria in accordance with the regulations on local production. The company said it has completed the local construction under the same safety and quality standards as those at its shipyard in Geoje, Korea.
SHI won the FPSO project on a turnkey basis, which means it had to manage design, procurement, production, transportation, and trial run of the facilities. It is the world's largest scale with a contract price of US$3.4 billion (3.79 trillion won), the largest ever for FPSO.
After going through a trial run, Egina FPSO will be sent to the marine oil field within this year. It will produce up to 200,000 barrels of crude oil a day, accounting for 10% of Nigerian crude oil production.
The Egina oil field is 200 km away from the coast of Nigeria. The FPSO is 330 meters in length, 61 meters in width, and 34 meters in height, and will have a storage capacity of 2.3 million barrels. It is an ultra-large marine facility with its upper plant alone weighing 60,000 tons.
In October 2016, Samsung Heavy Industries formed a production base in Lagos in cooperation with local companies. The local production base is an area of 120,000 square meters with assembly factories, painting factories, and 500-meter long quay walls. It is the only yard in Africa that can manufacture and mount modules of large-scale FPSO of 2 million barrels.
An official from Samsung Heavy Industries said, "By proving the ability to execute the huge project in compliance with the local content regulations, we have secured a favorable position in winning additional offshore projects in West Africa."