AfrOil: Nigeria launches $315mn FPSO vessel to bolster oil production

Nigerian Vice President Kashim Shettima has inaugurated a $315mn floating production, storage and offloading (FPSO) vessel in Dubai, marking a major step forward for the country's oil and gas sector.

The vessel, constructed by Oriental Energy Resources, a privately owned Nigerian oil company, represents a move towards self-sufficiency in energy production. With a storage capacity of 1mn barrels, the FPSO will initially produce 17,000 barrels per day, scaling up to 30,000 bpd.

The vessel is scheduled to leave Dubai for Nigeria in 1Q25 and is expected to commence operations in the Okwok Oil Field, located in Nigeria's Akwa Ibom state, by mid-2025. Speaking at the inauguration ceremony at the Drydocks World Dubai Shipyard, Shettima highlighted the project’s role in advancing Nigeria’s energy ambitions.

“This FPSO vessel is more than just a technological achievement; it is a symbol of Nigeria’s ambition and our readiness to meet global energy demands,” Shettima said. “Under President Tinubu’s leadership, we are witnessing the transformation of the oil and gas sector, which is central to our economic revitalisation efforts.”

Alhaji Muhammadu Indimi, executive chairman of Oriental Energy, noted that this is the first FPSO fully financed by a Nigerian company. He underscored the project’s potential to boost national oil revenue and foster domestic development.

“When operating at full capacity we expect the Okwok Oil Field to produce up to 30,000 barrels of oil a day, significantly enhancing Nigeria’s oil production and contributing to the government’s ambition to increase oil revenue to fund Nigeria’s development,” Indimi said. He added that the Okwok field is just one step towards Oriental Energy’s goal of achieving 100,000 bpd of production in Nigeria.

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