Nigeria’s energy sector marked a major milestone with the inauguration of a $315 million Floating Production Storage and Offloading (FPSO) vessel by Vice President Kashim Shettima at Drydocks World in Dubai.
Representing President Bola Tinubu, Shettima emphasised the vessel’s significance as a symbol of Nigeria’s ambition to become a leading global energy player.
Operated by Oriental Energy Resources Limited, the FPSO vessel, with a storage capacity of one million barrels, is expected to kick off with an initial production of 17,000 barrels per day (bpd) before increasing its output capacity to 30,000 bpd.
Here’s what you need to know:
The vessel can process up to 30,000 barrels of oil daily, with plans to scale output further as operations stabilise. It is equipped to handle 40,000 barrels of oil and 15 million cubic feet of gas daily.
According to Africa’s Oil & Gas report, the first oil is expected by July 1, 2025, to go by the company’s latest update on the project. It would be 10 years since the field’s wellhead jacket had been installed, permitting the drilling of Okwok-13, the first development well, which flowed at a rate over 5,000 barrels per day of crude.
Okwok is located at 31metre water depth, in shallow water Oil Mining Lease (OML) 67 in southeast offshore Nigeria.
The ongoing field development is funded by Vitol, the global commodities trader that will recoup its loan facility in crude. The Nigerian independent proposes to drill 15 wells, in the first instance, to achieve first oil.
When hooked up, the Okwok field will become OER’s second-producing marginal field. Currently, the company operates the Ebok field, at around 10,000BOPD.
If Okwok’s planned peak production of 30, 000BOPD-for the first phase- is reached by December 2025, as Oriental Energy Resources Limited anticipates, the company’s total production will be around 40, 000 bpd at the time.
Advanced technology: Designed with cutting-edge safety and operational standards, it will serve as the primary production hub for the Okwok oil field, a shallow-water project off Nigeria’s southeastern coast.
Boosting oil revenue: The vessel’s deployment at the Okwok field is expected to significantly increase Nigeria’s crude oil output, contributing to the government’s revenue growth and economic development objectives
Local investment: This is the first FPSO entirely funded by an indigenous Nigerian company, Oriental Energy Resources, under the leadership of chairman Muhammadu Indimi. This landmark achievement showcases the rising capability of Nigerian firms in the global oil and gas sector.
Read also: Oriental Energy donates climate monitoring station to UNIUYO
Timeline and impact
Deployment and operations: The vessel will depart Dubai for Nigeria in the first quarter of 2025. First oil production is projected by July 2025. Its presence is expected to catalyze economic activities in the Okwok region, creating job opportunities and fostering local development
Broader significance
Shettima described the FPSO as a transformative step in aligning Nigeria’s hydrocarbon development strategy with global energy demands.
The vice-president said as Nigeria’s domestic refineries become operational, vessels like the FPSO would play a crucial role in boosting the country’s production capacity and driving economic growth.
He reaffirmed the government’s support for transformative initiatives “which align with Nigeria’s vision for expanding hydrocarbon exploration, storage, and refining.”
Babagana Zulum, Borno governor, expressed enthusiasm about the project, praising the vision and determination of the chairman of Oriental Energy Nigeria.
He said the investment would boost economic growth, generate job opportunities for Nigerians, and ensure steady growth and development of the nation’s economy.
In his remarks, Antolovic Rado, chief executive officer of Drydocks, expressed confidence that the vessel, once fully operational, would contribute significantly to the sustainable development of the Okwok oil field region and would support economic growth and energy security.
He said Oriental Energy’s significant investment in the oil sector has set a new standard for operational excellence and safety, benefiting both the company and its partners.
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