Samsung to build the world largest FPSO in Nigeria
In June 2013, Samsung Heavy Industries Upstream Nigeria converted a letter of appointment (LOA) into firm signed contract with Total Upstream Petroleum Nigeria (TUPNI) for the construction of the world ever largest floating, production, storage and offloading (FPSO) vessel in Nigeria.
With $3 billion capital expenditure, this FPSO awarded by Total and the local Nigeria National Petroleum Corporation (NNPC) to Samsung for Egina is still increasing in size since March earlier this year.
With the same length of 330 meters and the same width of 61 meters this final version of Egina FPSO will exceed the previous one with:
– Height with 34 meters instead of 33.5 meters
– Dry weight of the topsides with 36,000 tonnes (t) compared with 34,000 t
– Storage capacity of 2.3 million barrels of crude oil instead of 2 million barrels (b)
This last contracted FPSO is also breaking another record as the world ever largest offshore plant.
Samsung to increase Nigeria local content in FPSOs
With its shipyard close to Lagos, Samsung had made a significant effort on the local content to win the project in addition to submit the lowest bid.
With this form of contract, Samsung has a strong pressure on the costs, but benefits from a certain autonomy in the limits of the regulations and project specifications to optimize his manufacturing process and reduce costs.
In this context, the regulation on the local content is giving contractors additional constraints but also the opportunity to reduce the costs if well anticipated.
For Egina, Samsung and Total prepared over the years a comprehensive program to train young Nigerian workers in South Korea to the different skills required for the design and construction of such a vessel such as for example: sandblasting, welding, integrity inspection.
These training programs were developed in line with and rewarded by American standards certifications.
In Nigeria, Samsung deployed plans with the Government to offer the opportunity of these training programs to all categories of population, including the Niger Delta indigenes.