Nigeria strengthens oil production capacity with $315m FPSO vessel launch
In a landmark development for Nigeria’s oil and gas sector, Oriental Energy Resources Limited has launched a $315 million Floating Production, Storage, and Offloading (FPSO) vessel, designed to significantly boost the nation’s crude oil production.
The FPSO vessel, with a storage capacity of one million barrels, is set to begin with an initial production of 17,000 barrels per day, with plans to increase its capacity to 30,000 barrels per day. The vessel is expected to depart for Nigeria in the first quarter of 2025, with production set to commence at the Okwok Oil Field in the first half of the year.
Vice President Kashim Shettima, who represented President Bola Ahmed Tinubu at the commissioning and naming ceremony of the vessel, described the facility as more than just a maritime infrastructure project. He highlighted it as a testament to the success of President Tinubu’s reforms in the oil and gas sector and a reflection of Nigeria’s growing global influence.
Speaking at the ceremony held at the Drydocks World Dubai Shipyard in Dubai, United Arab Emirates, on December 14, 2024, Shettima noted that what distinguishes Nigerians is not only their ambition but also their understanding of where the world is headed.
In a statement issued by Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Shettima stated: “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.”
He continued, “Under President Tinubu’s leadership, we are witnessing the transformation of the oil and gas sector, which is central to our economic revitalisation efforts.” Shettima further emphasised that the vessel plays a critical role in Nigeria’s ambition to optimise productivity and become a central hub for hydrocarbon demand, both domestically and globally.
The Vice President commended Alhaji Muhammadu Indimi, the Executive Chairman of Oriental Energy Resources Limited, for his outstanding contributions to the industry.
“Over the decades, Alhaji Muhammadu Indimi has been a model businessman and a symbol of excellence in the oil and gas industry. It is not surprising that his vision has transformed Oriental Energy Resources Limited into a global phenomenon. This outcome demonstrates what is possible when ambition is matched with perseverance and expertise,” Shettima said.
“His journey reminds us that Nigeria is a land of opportunity, and with dedication, there is no limit to what we can achieve.”
Shettima further explained that as Nigeria’s home-based refineries become operational, vessels like the FPSO will play a crucial role in maximising the country’s production capacity and driving economic growth.
He noted, “Just about two weeks ago, President Bola Ahmed Tinubu was in Paris, where he oversaw the expansion of one of Nigeria’s indigenous banks into the European financial market. That historic moment reflected our collective aspirations as a nation.”
The Vice President also pointed out that the UAE demonstrates what can be achieved when natural resources are leveraged effectively, reaffirming the Nigerian government’s support for transformative initiatives that align with Nigeria’s vision for expanding hydrocarbon exploration, storage, and refining.
“This FPSO vessel symbolises a future where Nigerian ingenuity meets global standards, and we will be here every step of the way to ensure its utility and success,” he added.
Borno State Governor, Prof. Babagana Umar Zulum, expressed his delight in the project, praising the vision and commitment of the Chairman of Oriental Energy Nigeria. He highlighted that the investment will stimulate economic growth, create job opportunities, and ensure steady growth and development in the nation’s economy.
“Today is one of my happiest moments,” Governor Zulum remarked. “I am especially proud because Alhaji Indimi is from Borno State, and I am pleased to note that the production of this vessel was entirely funded by his company, which is a first in Nigeria. This demonstrates Alhaji Indimi’s commitment to the growth and development of not only Borno State but the entire country.”
Nasarawa State Governor, Engr. Abdullahi Sule, also applauded Indimi and his technical partners, noting that to fully appreciate the oil mogul’s success, it is important to recognise that many others were allocated oil blocks in the 1990s.
“From what we are witnessing today, Alhaji Indimi is a believer in Nigeria, investing in Nigeria and supporting the government. That is why he is investing in this project, which will store one million barrels of crude oil,” Governor Sule said.
Earlier, Alhaji Indimi revealed that the FPSO is the first to be fully funded by a Nigerian indigenous company. He explained that the ENEM FPSO represents an effort for a Nigerian company to independently develop a marginal oil field, marking an important milestone for both Nigeria and its indigenous oil and gas sector.
“When operating at full capacity, we expect the Okwok Oil Field to produce up to 30,000 barrels of oil per day, significantly boosting Nigeria’s oil production and contributing to the government’s goal of increasing oil revenue to fund development,” Indimi said.
“The Okwok field is just one step towards our long-term ambition to deliver 100,000 barrels of oil per day in Nigeria. We have a strong set of proven assets and a development pipeline to achieve this.”
He also expressed his gratitude to the Nigerian government, President Bola Ahmed Tinubu, Vice President Kashim Shettima, and officials in the Ministry of Petroleum Resources and other agencies for providing the enabling environment for this investment.
Capt. Dr. Antolovic Rado, Chief Executive Officer of Drydocks Dubai, assured that the FPSO, when fully operational, will contribute significantly to the sustainable development of the Okwok oil field and support economic growth and energy security. He commended Oriental Energy’s investment, setting a benchmark for operational excellence and safety.
Mr Hassan Basma, representing partners HBA & World Carriers Corporation, also praised the vessel, noting that it is significant for being the first indigenous-owned FPSO project in Nigeria. He highlighted that the project was financed wholly in Nigeria and predominantly executed by a Nigerian workforce.
“We aim to develop this vessel into a centre of excellence, not only for Nigeria but for the entire coast of Africa,” Basma said.
He concluded that the completion of the project aligns with Nigeria’s vision and adheres to the company’s Environmental, Social, and Governance (ESG) principles, in keeping with the spirit of Nigeria.
