The Senate Committee on Local Content has requested for explanation on how $3bn Floating, Production, Storage and Offloading (FPSO), Egina Project under construction by the Total Upstream Nigeria Limited became $16bn.
Chairman of the Committee, Senator Solomon Adeola (APC, Lagos) made the request when the managing director and chief executive of Total Upstream Nigeria Limited, Mr. Nicolas Terraz appeared before the panel.
Terraz appeared before the committee to make a presentation on the project.
Adeola said his committee will require more detailed information on the project in relation to implementation of Nigeria Local Content Act 2010 given the quantum increase in the project sum since it was awarded in March 2012.
“In the last four years alone the project value that was initially awarded at the sum of $3,143,499,498 to Samsung Hyundai Heavy Industries (HHI) in 2012 has been varied from $6billion to $13billion and $16billion respectively without commensurate increase of the local content portion of the project. The committee will want have information on this aspect of the project in the interest of Nigerian people“ Adeola stated in a statement by his media aide, Chief Kayode Odunaro.
Adeola stated that the committee may be inviting other contractors involved in the project including SAIPEM, Nestoil, Dorman Long, Nigerdock and Aveon Offshore adding that for now the committee will want a detailed overview from Total Upstream Nigerian Limited being the major contractor in the ongoing project.
“The committee will also want to get information on why the Nigerian Engina Project is more expensive than any other one elsewhere in the world in addition to its local component” Adeola stated.
When properly executed the project, comprising of drilling and completion of 44 oil wells and other ancillary facilities in Deep sea, is expected to create 50,000 employment opportunities for Nigerians, said the acquisition of highly technical skills by Nigerians and create opportunities in future to domesticate the construction of such projects in Nigeria.
