Samsung Heavy Industries Nigeria wishes to set the records straight amidst the ongoing speculations concerning its stake in the SHI-MCI FZE joint venture and its role in the Egina FPSO project.
Samsung Heavy Industries Nigeria (SHIN) won the turn-key contract to build the Egina FPSO in 2013, with the parent company Samsung Heavy Industries (SHI) Korea having built vessels for various projects in the Nigerian oil & gas industry.
The then newly-implemented NOGIC Act called for the need for a local partner and so SHI-MCI FZE was born out of a partnership with LADOL’s MCI FZE. The joint venture was formally inaugurated in July, 2014 with equity structure of 70% SHIN and 30% MCI with 100% debt guarantee from parent company SHI Korea.
SHI-MCI FZE is fully compliant with local as well as top international certifications. In October 2014, it became NEPZA certified. NIMASA and NPA also approved the utilization of SHI-MCI FZE’s integration quay in December 2016 and April 2017 respectively. Samsung Heavy Industries - a global brand was founded in 1974 with products and services impacting the world in different spheres of life. Every requirement that is vital to doing business in Nigeria as well as in a free zone has been duly met.
To ensure that local content stipulations were met, SHIN (not the SHI-MCI FZE joint venture) single-handedly built the fabrication and integration yard on the land leased from LADOL. This investment cost $300 million. In June 2016 Pre-Erection work for the yard began and by August 2016 the Integration Quay, the longest in Africa was completed.
On the 1st of November, 2017 the Egina FPSO left the shores of Goeje, South Korea and arrived at the SHI-MCI Yard, Takwa Bay, Lagos on the 18th January, 2018. As part of the local content benchmark set by the Nigerian Content Development Monitoring Board (NCDMB), 6 out of 18 modules of the FPSO were 100% made in Nigeria. April 2017 saw the completion of the Module Stacking with 6 modules and 14 decks. It is worthy to note that the Egina project exceeded 47% for local content. This is the highest local content figure ever achieved in deepwater developments in in the history of Nigerian oil & gas industry. These modules were later integrated into the vessel. All works were handled by Samsung. Over 30,000 Nigerians for direct and indirect labour combined.
SHI-MCI FZE operates a high level of HSE policy with relevant certifications to validate. The fabrication and integration work of Egina FPSO which totaled over 6 million man-hours was achieved near Lost Time Injury (LTI) free.
The Egina deepwater project is owned by Total Upstream Nigeria (TUPNI) in partnership with Nigerian National Petroleum Company (NNPC), China National Offshore Oil Corporation (CNOOC), South Atlantic Petroleum (SAPETRO), Petroleo Brasileiro (PETROBRAS). The FPSO will add 200,000 barrels to Nigeria’s daily crude oil production and over 2.3 million barrels in a period of 25 years. The vessel has sailed away and is being commissioned at the Egina oilfield off the shores of Port Harcourt.