Total’s $3.8 billion Egina FPSO project may suffer setback

The management of Global Resources Management Limited (GRML), a subsidiary of Lagos Deep Offshore Logistics (LADOL) has banished Samsung Heavy Industries (SHI) Nigeria Limited from the LADOL Free Zone in Lagos.

SHI was barred from LADOL’s dockyard over alleged expired operating licence. There are indications that the SHI banishment would likely affect the flow of the $3.8 billion Egina FPSO Project.

How Total’s Egina FPSO Project may be affected

SHI is the operator of a fabrication and integration yard (SHI-MCI yard) in the zone, which was used to integrate the Egina Floating Production Storage Offloading (FPSO) vessel, which has sailed away to the 200,000 barrels per day Egina oilfield.

The SHI-MCI yard is a joint venture between LADOL and SHI, with SHI having 70 percent stake and LADOL 30 percent.

The dockyard is the only one of its kind in Africa, designed to make Nigeria a hub of FPSO fabrication in the continent.

Recall that one of Nigeria’s largest social accountability movement, Connected Development (CODE), made a public outcry to the Federal Government not to ignore corrupt activities of foreign companies in Nigeria like SHI.

The South Korean shipbuilder, had in 2017, confirmed that Total’s Egina FPSO sailed away from its Geoje shipyard, heading to Nigeria. The FPSO, operated by Total, is 330 meters in length, 61 meters across and 34 meters high, with a storage capacity of 2.3 million barrels of oil.

About SHI

SHI is one of the largest shipbuilders in the world and one of the “Big Three” shipbuilders of South Korea.

The core subsidiary of the Samsung Group, South Korea’s largest conglomerate, focuses on the engineering, procurement, construction, commissioning and the delivery of transportation ships for the commercial industry, topsides modules, drilling and floating production units for the oil and gas sector, gantry cranes for fabrication yards, digital instrumentation and control devices for ships, and other construction and engineering services.

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