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FPSO project won’t delay affect cost – Samsung

By on October 10, 2014

Samsung Heavy Industries Nigeria Limited has said despite the delay of the in-country facility development of the Egina Floating, Production, Storage and Offloading project, there would not be any change in the overall cost of the project.

A groundbreaking ceremony for the start of construction of major infrastructural development associated with the project, took place at the Lagos Deep Offshore Logistics on Friday. The modules built in Nigeria will be integrated into the FPSO in 2017.

The General Manager, SHI Nigeria, Mr. Frank Ejizu, said, “Though we have a slight delay in the project at the initial stage, which has been resolved, the delay will in no way, impact on the cost of the project. It was just a delay in the contract between Samsung and LADOL.”

He also stressed that the delay would not affect the design of the FPSO and the completion date for the project.

Samsung and LADOL Free Trade Zone entered into a joint venture partnership to form a new company known as SHI-MCI Free Zone Enterprise, to deliver on the project, which was first awarded in 2012.

Ejizu explained that construction work on the project site started in August 2014 following the settlement of the earlier disagreement between both parties, adding that the fabrication and integration yard would be completed and ready for operation in October 2016.

He said, “The first fabrication and integration work would kick off in 2017 and SHI-MCI has sent some selected Nigerians to Korea to receive appropriate training in preparation for the take-off of the project. And the company is committed to delivering the project.”

“SHI as the EPC contractor, owns 70 per cent stake in the company, while LADOL owns the remaining 30 per cent for the provision of a yard for building the integration facility. The facility yard will comprise 10,000 metric tonnes production capacity; 2.5 million barrels of oil; 13.5 meters draught; 10.5 meters draught for the Egina project and 5,000 metric tonnes of heavy lifting area to be used for integration.”

Also commenting, the Managing Director, LADOL, Dr. Amy Jadesimi, said that it took the indigenous logistics firm 13 years of commitment to achieve this laudable milestone, saying that the project was conceived in line with the vision of LADOL to create a wholly Nigerian platform that would take the advantages created by local content to generate thousands of jobs.

 

[Punch]