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Deputy oil minister Lokpobiri has commended the FPSO project, emphasising its role in boosting local capacity and crude oil output.
The federal government at the weekend said it was eyeing the production of an additional 40,000 barrels per day to boost the country’s current output from the ongoing Floating Production Storage and Offloading (FPSO) facility in Lagos.
The project is a Joint Venture (JV) between the Nigerian National Petroleum Company Limited (NNPC) and Century Nigeria Limited, in partnership with WAEP, an Engineering, Procurement and Construction (EPC) firm, as well as Enserv.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who spoke during an inspection of the project in Lagos, lauded the progress of work so far.
A statement by the minister’s spokeswoman, Nneamaka Okafor, quoted him as expressing satisfaction with the strides made “emphasising the facility’s potential to boost Nigeria’s crude oil production by an additional 40,000 barrels per day”.
The FPSO project, the minister said, was one of the measures arising from the his engagement with NNPC Limited, in line with President Bola Tinubu’s directive for increased production.
According to him, it is strategically designed to enhance local capacity and drive further investments into the nation’s oil sector.
Nigeria, Africa’s top crude oil producer, has been unable to meet its Organisation of Petroleum Exporting Countries (OPEC) quota for years, blaming oil theft, sabotage and prolonged underinvestment.
Going by the production data from August, despite the reduction of Nigeria’s quota to 1.58 million bpd by the international oil cartel, Nigeria was only able to drill 1.35 million bpd OPEC oil during that month.
However, the federal government has said it is currently producing between 1.6 million bpd and 1.7 million bpd when condensates, which are outside OPEC computation, are added to total output.
But Lokpobiri commended the collaboration between NNPC, Century Group, and other partners, identifying the project as a critical element in Nigeria’s efforts to significantly increase crude production and meet global demand.
“The work being done here is a reflection of the kind of investments we want in the oil sector. With projects like this, we are not only building local capacity but also expanding our crude production beyond current quotas.
“This facility alone will contribute an additional 40,000 bpd, which is a step in the right direction for our economy,” the minister stated.
He further underscored the importance of increasing Nigeria’s oil output, highlighting the government’s commitment to supporting partnerships that aim to revitalise the sector.
“Our goal is to see Nigeria produce well above its current quota, and this project exemplifies the kind of investments that will help us achieve that,” Lokpobiri added.
“Supporting local capabilities is essential to driving the increase in our crude oil production…This facility is a clear example of how partnerships can enhance both local expertise and national output, aligning perfectly with our goal of significantly increasing oil production beyond current quota as directed by President Bola Tinubu.
“Interestingly, Mr. Ken Edward Etete, the Group Chairman of Century Group, has assured that the various upgrades underway at the facility are on track, with full completion expected by the first quarter of next year.
“This project demonstrates the kind of commitment and collaboration needed to strengthen our energy sector, and we remain supportive of similar efforts to further enhance our production capacity,” he added.
The minister commended the management team for its dedication to ensuring the project’s timely delivery and urged the leadership to maintain its commitment.
He further reaffirmed the government’s readiness to support similar initiatives aimed at enhancing Nigeria’s oil production capacity.
According to him, the FPSO project stands as a testament to the power of partnerships in the oil and gas sector, with its successful completion set to make a significant impact on Nigeria’s economy and global energy positioning.
Speaking on behalf of Century Group, Etete provided insights into the progress and upcoming milestones for the project, explaining that the facility will become a key contributor to Nigeria’s total crude oil production in a short time.
“We have several upgrades ongoing at the FPSO facility, and we are setting targets for various stages of the work. We are on track to complete everything within the first quarter of next year.
“The upgrades would not only enhance operational efficiency but also position the facility as a key contributor to Nigeria’s energy sector,” Etete stated.
