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Samsung wins $3b FPSO order in Nigeria

By on June 26, 2013

Samsung Heavy Industries Company Limited said its unit, Samsung Heavy Industries Nigeria, won a $3 billion order from an unnamed major oil company to build a floating production, storage and offloading vessel.

Of the $3 billion order, Samsung Heavy Industries Co will build the hull and some upper parts of the vessel worth 1.955 trillion won ($1.72 billion), the South Korean shipbuilder said in a regulatory filing.

The remainder will go to the Nigerian unit.

The vessel will have a storage capacity of 2.3 million barrels, the shipbuilder added. The contract is set to expire by June 2016.

In the same vein, Nigeria’s Federal Executive Council (FEC), has approved $2.8 billion (about N420 billion) contract for the development of the Onne Oil and Gas Free Zone in Port Harcourt through concession.

Minister of Information, Labaran Maku, announced this when he briefed State House correspondents on the outcome of the Council’s meeting in Abuja last week.

Maku said the contract specifically for the development of Phase 4B facilities at the port would be solely pre-funded by a private investor, Messrs Deep Offshore Services Nigeria Limited.

He added that the contract, to be completed in six years, has a concession period of 25 years when the contractor is expected to recoup its investments.

The minister said the approval for the contract followed a memo presented to the Council by the Minister of Transport, Senator Idris Umar.

He said the concept of the development of the facilities was to decongest the Lagos and Port Harcourt ports.

The contract, according to Maku, will also entrench the Public-Private-Partnership policy in the establishment and upgrading of public sector facilities.

He noted that the project is expected to generate 4,000 job opportunities for both professionals during its execution and about 20,000 direct and indirect job opportunities when it is in full operation.

“What is significant about this contract is that investors have shown remarkable interest in developing facilities in our country,” he said.

Maku recalled that phase one to four of the port was also developed by private sector.

 

 

[Daily Independent]