A Review of the Nigerian Energy Industry

Samsung restates commitment to Nigerian Content

Samsung17 December 2013, Lagos – Samsung Heavy Industries (SHI) of Korea has restated its commitment to Nigerian content development in the oil and gas industry, saying it would consistently take deliberate steps to ensure that Nigerian indigenous companies were given consideration in the execution of more complex projects.

Speaking in Lagos at a celebration to mark the successful completion of the detailed engineering of the offshore living quarters for the Floating Production Storage Offloading (FPSO) vessel for Total’s Egina deep-water oil field, the Managing Director of Samsung Nigeria, Mr. CW Kim said his company had unshaken belief in Nigeria and her ideas.

He said by awarding the detailed engineering contract to Popham Walter Odusote (PWO), a truly Nigerian company, his company had once more demonstrated its readiness to empower Nigerian companies. Increase indigenous technology and engineering capacity, create jobs and also contribute to Nigeria’s economic development.

“Most importantly, we have reinforced our desire to become part of the development of Nigeria’s technological landscape. As Samsung, we our commitment to the local content initiatives of the Federal Government, under the supervision of the Nigerian Content Development and Monitoring Board (NCDMB) is absolute,” he said.

Kim said the impact of Samsung’s partnership with PWO had been tremendous.

According to him, there was a continuous exchange of ideas and transfer of technology throughout the seven-month duration of the detailed engineering project.

He said his company was happy that PWO approached the assignment as true professionals, adding that Samsung was happy with PWO’s achievements.

Kim said the 86,400man-hours spent on the project were as a result of the efforts of 44 Nigerian professionals with nine specialists from South Korea.

“During the duration of this project, seven PWO engineers visited Samsung Heavy Industries in Korea to learn the technology for the development of offshore living quarters. Our partnership with PWO is due to our unshaken belief in Nigeria as a nation and the ideals she represents,” Kim added.
Samsung Heavy Industries, with its ship building capabilities and track record of achievements, emerged as the preferred bidder in the $3.1billion contract for Total Upstream Petroleum Nigeria Limited’s Egina FPSO.

The highly competitive and transparent bidding was conducted by the National Petroleum Investment Management System (NAPIMS), the investment arm of the NNPC.

The multi-billion dollar Egina field in OML130, near Akpo Field, is the third deep offshore development projects of the French oil giant in Nigeria with reserve potential in excess of 550million barrels and a peak production of 150,000b/d.

The Egina FPSO has a total storage capacity of 2.3million barrels and will measure 330metres in length, 61metres in width and 33.5metres in depth. The Egina FPSO living quarters will have a total accommodation capacity of 242 persons-on-board. The engineering man-hours on the living quarters’ design is 86,400 hours expended over a period of seven and a half months.

The total engineering man-hours for Samsung Heavy Industries personnel in PWO office is 9,720 man hours. The total training man-hours with SHI in Goeje, South Korea is 1,820man-hours, bringing the grand total man-hours for the project to 97,940man-hours.

– Ejiofor Alike, This Day

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