Nigeria’s energy sector has reached a new milestone with the inauguration of a $315 million Floating Production Storage and Offloading (FPSO) vessel.
The inauguration, which took place at Drydocks World in Dubai, was attended by Vice President Kashim Shettima, who represented President Bola Tinubu. The FPSO is a key component in the country’s strategy to boost its energy production and establish itself as a leading global player in the oil and gas industry.
The vessel, operated by Oriental Energy Resources Limited (OER), will be stationed at the Okwok oil field, located in shallow waters of Oil Mining Lease (OML) 67 off Nigeria’s southeastern coast. With a storage capacity of one million barrels, the FPSO is expected to initially produce 17,000 barrels per day (bpd), with plans to increase its output to 30,000 bpd over time. The vessel is also equipped to handle up to 40,000 barrels of oil and 15 million cubic feet of gas daily.
Vice President Shettima, speaking at the event, emphasized the significance of the FPSO as a symbol of Nigeria’s growing ambition in the global energy market. “This vessel is not just an asset for the oil industry, but a testament to Nigeria’s determination to enhance its position in the global energy landscape,” he said. “It is a significant step towards the realization of our vision to become a major player in the global energy sector.”
The Okwok field, where the FPSO will operate, has seen continuous development over the past decade. In a recent update, Oriental Energy Resources noted that it has been 10 years since the field’s wellhead jacket was installed, paving the way for drilling activities, including the successful Okwok-13 well, which has flowed at rates exceeding 5,000 barrels per day.
The project is primarily funded by Vitol, a global commodities trader, which has provided a loan facility that will be repaid with crude oil. Oriental Energy plans to drill up to 15 wells as part of the first phase of development. Once fully operational, the Okwok field will become OER’s second producing field, complementing its existing operations at the Ebok field, which currently produces approximately 10,000 barrels per day.
The FPSO’s deployment is poised to significantly boost Nigeria’s oil production. If the planned output of 30,000 barrels per day is reached by December 2025, as anticipated, the company’s total production capacity will be around 40,000 bpd, including the Ebok field. This increase in production will help drive Nigeria’s economic growth, generate additional government revenue, and create job opportunities for Nigerians.
The project is also a testament to the increasing capabilities of Nigerian companies in the oil and gas sector. Notably, the FPSO is the first to be entirely funded by a Nigerian company, Oriental Energy Resources, under the leadership of its chairman, Muhammadu Indimi. “This achievement marks a new chapter for Nigerian firms in the global oil and gas industry,” Shettima remarked. “It demonstrates the growing capacity of local enterprises to handle complex projects and make substantial contributions to the nation’s energy sector.”
The FPSO will leave Dubai for Nigeria in the first quarter of 2025, with first oil production expected by July 2025. Upon its arrival, the vessel is expected to catalyse economic activities in the Okwok region, with potential benefits to local communities through job creation and infrastructure development.
Borno State Governor Babagana Zulum, who also attended the event, expressed his support for the project. He praised the vision and determination of Muhammadu Indimi and emphasized the broader economic impact of the FPSO. “This project is not just a major achievement for the energy sector, but a vital boost to Nigeria’s overall economic growth,” Governor Zulum said. “It will create jobs, improve livelihoods, and contribute to sustainable development in the region.”
Antolovic Rado, the Chief Executive Officer of Drydocks World, also commented on the significance of the FPSO. “Once fully operational, this vessel will make a significant contribution to the sustainable development of the Okwok oil field region and support Nigeria’s energy security,” he stated. “Oriental Energy’s commitment to operational excellence and safety is setting a new standard for the industry, benefiting both the company and its partners.”
In his remarks, Vice President Shettima reaffirmed the Nigerian government’s continued support for transformative initiatives in the oil and gas sector. “As Nigeria’s domestic refineries come online, vessels like this FPSO will play an even greater role in expanding our production capacity and driving the economic growth of our nation,” he said. “This is just one of many steps Nigeria is taking to align its energy strategy with global demands.”
The deployment of this cutting-edge FPSO is a significant leap forward for Nigeria’s energy sector, demonstrating the country’s growing capabilities in hydrocarbon exploration and production. With its state-of-the-art technology and commitment to operational excellence, the Okwok FPSO will not only contribute to Nigeria’s oil output but also play a key role in the country’s long-term energy development strategy.
As Nigeria moves toward achieving its energy goals, the successful operation of the Okwok FPSO will undoubtedly set the stage for further advancements in the sector. The project stands as a clear indication that Nigeria is well on its way to becoming a global energy powerhouse.
