‘Symbol of Nigeria’s energy ambition’ — Shettima inaugurates $315m FPSO vessel

Vice-President Kashim Shettima has inaugurated a $315 million floating production, storage, and offloading (FPSO) vessel to boost Nigeria’s oil production capacity.

The inauguration ceremony was held in Dubai.

Operated by Oriental Energy Resources Limites, 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.

According to a statement on Saturday by Stanley Nkwocha, senior special assistant to Shettima on media and communications, the vessel is expected to depart for Nigeria in the first quarter (Q1) of 2025 and commence production at the Okwok oil field in the first half (H1) of next year.

Speaking while inaugurating the vessel at the Drydocks World in Dubai, Shettima said the facility is more than a maritime infrastructure project.

Representing President Bola Tinubu, he said the facility highlights the success of the president’s reforms in the oil sector and a symbol of Nigeria’s growing global influence.

“This FPSO vessel is more than just a technological achievement; it is a symbol of Nigeria’s ambition and our readiness to meet global energy demands,” the vice-president said.

“Under President Tinubu’s leadership, we are witnessing the transformation of the oil and gas sector, which is central to our economic revitalisation efforts.”

‘VESSEL WILL ENABLE NIGERIA TO BECOME HUB FOR HYDROCARBON DEMAND’

Shettima said the vessel is a critical link in Nigeria’s ambition to optimise productivity, enabling the country to become a hub for hydrocarbons demand, both domestically and globally.

He commended Muhammadu Indimi, the executive chairman of Oriental Energy Resources Limited, for his remarkable contributions to the industry.

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.

Speaking earlier while welcoming the vice-president and his delegation, Indimi said the facility is the first FPSO entirely funded by an indigenous company.

Her said the vessel, named ENEM FPSO, marks a significant step toward enabling a local oil and gas company to independently develop a marginal oil field, stressing that the development is an important milestone for Nigeria and its indigenous energy sector.

“When operating at full capacity we expect the Okwok Oil Field to produce up to 30,000 barrels of oil a day, significantly enhancing Nigeria’s oil production and contributing to the government’s ambition to increase oil revenue to fund Nigeria’s development,” Indimi said.

“The Okwok field is just one step towards our long term ambition to deliver 100,000 barrels of oil per day of production in Nigeria. We have a strong set of proven assets, and a development pipeline that can deliver it.”

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.