Nigeria to boost oil production with FPSO Tamara Nanaye upgrade

Nigeria’s oil and gas sector took a significant step forward with the commencement of a local upgrade of the FPSO Tamara Nanaye, a Floating Production Storage and Offloading vessel, at the Laudo yard in Apapa, Lagos.

This historic upgrade marks the first time in the nation’s history that such a sophisticated project will be executed entirely within the country. It is only the second time in Africa that an FPSO will undergo such modifications, the first being in South Africa over two decades ago.

The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, who toured the facility, commended the stakeholders involved in the project, including the Nigerian National Petroleum Corporation Limited (NNPCL) and its subsidiaries, as well as private sector partners like WAEP Century Group, Dangote Industries, and Access Bank.

The FPSO Tamara Nanaye will be deployed to the Kalaekule field in OML 71/72 after its modifications are complete. This deployment is expected to add 40,000 barrels of oil per day (bpd) to Nigeria’s production output, along with 50 million standard cubic feet (MMSCF) of gas.

Lokpobiri highlighted how this project fits into President Bola Ahmed Tinubu’s vision of harnessing Nigeria’s vast hydrocarbon resources in ways that benefit the nation’s economy and people.

According to the Minister, President Tinubu’s administration is committed to increasing production not solely through exploration but also by addressing infrastructure deficits. This philosophy aligns with the Petroleum Industry Act (PIA), which emphasises private sector participation and the transformation of NNPC into a profit-driven enterprise.

Chief Executive Officer of Century Group, Ken Etete, shared insights into the technical aspects of the project. The FPSO, originally designed for deep water operations in Australia, was brought to Nigeria in 2016 and deployed to OML 113, where it was produced until November 2022. For its new role in the Kalaekule field’s shallow waters, significant upgrades are being made to its topside hull for structural integrity and mooring system. Etete emphasised the complexity of offshore production and the FPSO’s unique role in ensuring sustainable oil extraction.

Additionally, the FPSO will undergo extensive topside upgrades, including the installation of a three-phase separation system designed to maximise liquid recovery and stabilise both oil and gas production. A major upgrade to the flare stack is also planned, ensuring compliance with international best practices and environmental protection standards.

Etete noted that the in-country modifications are a landmark achievement for Nigeria’s oil and gas sector, as they are being executed almost entirely with local resources.

“This is a very unique project. For the first time, we are doing an in-country upgrade using Nigerian manpower, which not only benefits the economy but also increases the skill set of our local workforce,” he added.

The project is set to be completed by the first quarter of 2025, with expectations that the Tamara Nanaye will significantly enhance Nigeria’s oil output. The modifications to be made during the upgrade are designed to boost operational efficiency, reduce maintenance downtime, and optimise resource utilisation, which should lead to increased profitability and competitiveness in the market.
This landmark project is powered by the partnership between NNPC Upstream Investment Management Services (NUIMS), NNPC Energy Services Limited (EnServ), West African Exploration and Production Company Limited (WAEP), Century Group, and Access Bank.