Samsung, Century Group Sign Agreement on FPSO Renovation

Peter Uzoho

Global shipbuilding giant, Samsung Heavy Industries Nigeria Limited (SHIN) and the largest operator of Floating, Production, Storage and Offloading vessel (FPSO) and flow stations in Sub-Saharan Africa, Century Group, on March 24, 2023 signed an agreement for the Front Puffin FPSO upgrade in Nigeria.

This de-bottlenecking upgrade will be a significant momentum to lead to maintenance and upgrade works for existing FPSOs operating in-country, to increase their production capacity. 

The Front Puffin FPSO, which is now renamed FPSO Tamara Nanaye, is currently moored on the Quay wall of SHI-MCI Yard in Lagos.

 By the terms of the agreement signed on March 24, 2023 between Samsung and Century Group, the FPSO Tamara Nanaye will undergo various structural changes and renovations by the end of the second quarter of 2023.

 The FPSO Tamara Nanaye is scheduled to be put into another oil field by the end of second quarter 2023 after undergoing renovations such as adding topside production facilities, altering flaring capacity, changing mooring system to spread mooring and adding a riser porch structure to increase the production capacity of the FPSO.

Before Samsung sealed the agreement for this FPSO remodeling work, which requires high technology and detailed management, the market has been dominated by Asia – Singapore, China, and the Middle East – Dubai.

This project will significantly reduce the cost and schedule of moving FPSOs to Asia or the Middle East by utilising the geographical strength of SHI-MCI Yard located in Lagos, Nigeria, the centre of West Africa.

It will also utilise SHIN’s proven technology and management skills to build FPSOs in the country.

It is also expected to create employment for local manpower.

The newly signed FPSO Tamara Nanaye renovation has also confirmed Samsung Heavy Industries’ pioneering role in local fabrication of FPSOs after the successful delivery of the Egina FPSO.

This localisation strategy of Century Group and Samsung Heavy Industries Nigeria can be seen as the first groundbreaking efforts to increase oil and gas production in Nigeria by putting the field in early production, and reducing the input cost and shortening the period of the FPSO renovation work. 

The signing ceremony held recently was attended by the Managing Director of SHIN, Mr. Jongseok Kim, and the Group Executive Director of Century Group of Companies, Mr. Alaba Owoyemi.

The two companies also agreed to successfully carry out the work to consolidate Nigeria’s leadership position in FPSO fabrication and integration in Africa. 

Speaking at the ceremony, Kim said the project would be another example of Nigeria creating a new history.

He recalled that: “As already shown from Egina FPSO, SHIN will do our best to deliver the project successfully in a timely manner. SHIN has joined hands with Century Group, Nigeria’s top oil and gas company as a one team. “The success of the Project will be driven by one-team spirit and successful execution of FPSO Tamara Nanaye renovation work for the first time in Nigeria will be a turning point to aging FPSOs in operation,” Kim explained.

Also, commenting on the partnership, Owoyemi said his company is honoured to collaborate with SHIN.

He added that the Century Group looks forward to SHIN’s quality control, safety management, and construction management capabilities. 

“Century is the first indigenous company to renovate FPSO locally. It will be recorded in history as the first company to successfully complete such a project, and plan for additional FPSO/FSO owned by Century Group in the future. The renovation will be carried out in-country to contribute to the improvement of Nigeria’s technology and development of the oil and gas sector. This also shows the support of the Century Group to the development of local capacity, as required by the Nigerian Content. We will once again believe in the technology of Samsung Heavy Industries Nigeria, our partner in the renovation work, and continue to maintain the relationship for long-term business,” Alaba explained.

SHIN wrote Nigeria’s name on the global map when it used its yard in Lagos to fabricate and integrate the Egina FPSO locally, the first time such works were carried out in Africa. Being the first project launched after the enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, the Egina FPSO advanced the Nigerian Content to record levels.

SHIN has continued to improve on his achievements in offshore technology in Nigeria through business diversifications, particularly in ship repair and upgrade of ultra-large and offshore vessels. 

 A 330-metre- long Very Large Crude Carrier (VLCC), an international vessel used for exports of crude oil, had in June 2022 berthed at the SHI-MCI yard in Lagos for the first time and the VLCC at its quay wall at the yard where it successfully carried out the vessel repair and upgrade works.  

 During the ‘low season’ of offshore projects, SHIN diversified into container terminal and logistics operations for international and local clients to create more job opportunities for Nigerians.