The Nigerian oil sector is set to experience a significant boost following the local upgrade of the Floating Production Storage and Offloading vessel (FPSO) Tamara Nanaye at the Laudo yard in Apapa, Lagos. The upgrade, which is the first of its kind in Nigeria, represents a remarkable advancement in the country’s oil production capabilities. Minister of State for Petroleum Resources, Heineken Lokpobiri, emphasized the importance of the project, highlighting its role in enhancing local capacity and achieving the nation’s ambitious target of producing over 2 million barrels of oil per day. The upgrade is not just significant on a national level; it marks only the second instance in Africa where an FPSO has undergone such modifications, the previous case being in South Africa over 20 years ago.
During an inspection of the upgrade process, Lokpobiri expressed his satisfaction with the work being done and praised the collaborative efforts of various stakeholders involved in the initiative. This includes major players such as the Nigerian National Petroleum Company Limited and its subsidiaries, as well as private sector entities like WAEP Century Group, Dangote Industries, and Access Bank. Lokpobiri’s remarks underscore the project’s critical timing in Nigeria’s developmental agenda, particularly in enhancing the nation’s oil production capacity amid ongoing challenges in the sector. With the completion of this upgrade, the FPSO Tamara Nanaye is set to contribute significantly to Nigeria’s oil production efforts.
Once modifications are finalized, the FPSO Tamara Nanaye will be deployed to the Kalaekule field in Oil Mining Lease (OML) 71/72, and it is anticipated that this deployment will augment Nigeria’s crude oil output by approximately 40,000 barrels per day, alongside an increase of 50 million standard cubic feet of gas daily. This expected surge in production output represents a vital addition to Nigeria’s oil resources, which are crucial for the country’s economy. The upgrade not only aims to improve output levels but also seeks to fortify Nigeria’s position in the international oil market, which has become increasingly competitive.
The Chief Executive Officer of Century Group, Ken Etete, shared insights into the historical context and the technical modifications being made to the FPSO Tamara Nanaye. Originally built for deep-water operations in Australia and brought to Nigeria in 2016, the FPSO has had an operational history with OML 113 until November 2022. The project entails extensive upgrades to the vessel’s topsides, hull for structural integrity, and mooring system to suit the new operational environment in the shallow waters of the Kalaekule field. Etete emphasized the significance of these local upgrades, marking a transformative step for Nigeria’s oil and gas sector through the adaptation and enhancement of foreign technology using indigenous resources.
Moreover, Etete underscored that the execution of the project utilizing local manpower is a landmark achievement for the nation. By involving Nigerian workers in the upgrade, the initiative contributes positively to the local economy and promotes the development of skills within the workforce. This progressive stride in localizing oil and gas operations not only boosts economic vitality but also enhances the technical expertise of the Nigerian workforce, setting a precedent for future projects across the sector.
The completion of the FPSO upgrade is anticipated by the first quarter of 2025, and it represents a pivotal milestone in Nigeria’s quest to enhance oil output and bolster economic growth. Through this initiative, the country is taking significant steps toward achieving self-reliance in oil production capability. As Nigeria navigates various challenges in the oil sector, projects like the Tamara Nanaye upgrade exemplify the potential for innovation and improvement through collaboration, strategic investments, and commitment to local capacities. The outcomes of this venture may not only redefine the country’s production landscape but also inspire future endeavors aimed at enhancing the growth and sustainability of Nigeria’s oil and gas industry.
