₦airaland Forum

This initiative is a collaborative undertaking involving Nigeria's national oil company, NNPC Ltd., which holds a 55% stake in OML 18, along with Sahara Group, Eroton Exploration & Production, and Bilton Energy. The project centers on a Very Large Crude Carrier that has been converted into a double-hull Floating Storage and Offloading (FSO) vessel. This FSO is designed to streamline crude oil operations by directly receiving, storing, and offloading crude to export tankers, thereby circumventing the limitations associated with existing pipeline and barge infrastructure.

Nigeria's upstream sector has historically faced significant challenges in crude oil evacuation due to pervasive logistical and security issues. Pipelines, often traversing difficult terrain, communities, and remote areas, have been constant targets for theft and sabotage. This has led to the country losing tens of thousands of barrels of oil daily to illicit tapping and vandalism. While recent initiatives have improved pipeline availability, with NNPC reporting near 100% pipeline and terminal receipts, a substantial increase from peak losses exceeding 100,000 b/d, the inherent structural vulnerabilities in the system persist.

Traditional evacuation methods, such as barges and ship-to-ship transfers, are often slow and limited in capacity. These methods are prone to delays caused by siltation in berthing slots and congestion at terminals. To address these challenges, the Cawthorne FSO will serve as an offshore buffer and transfer hub, aiming to alleviate these bottlenecks.

The FSO's location near the Bonny export point enhances crude loading reliability for producers, lessening their reliance on extensive and vulnerable onshore pipelines. With a substantial 2.2 million barrel capacity, the vessel provides a crucial strategic buffer, allowing production to continue even if pipelines are shut down until export vessels arrive. The FSO boasts a double-hull configuration, advanced mooring systems, and integrated digital controls, all designed to bolster safety and mitigate the risk of spills or leaks. Tosin Etomi, Sahara's commercial lead, highlighted that this design is also expected to reduce carbon emissions associated with barge movements and improve evacuation safety.


Strategically, the FSO enhances national authority over a vital component of the oil value chain. This lessens dependence on foreign-owned terminals or external storage facilities, thereby retaining more value and risk within Nigeria.

This initiative aligns with a wider regulatory push, as exemplified by Nigeria's recent implementation of rules for real-time cargo tracking, vessel clearances, and unique identifiers for export shipments. These measures are designed to combat theft and under-declaration at export points. Consequently, the commissioning of Cawthorne complements this systemic drive towards greater transparency and control over crude oil movements.

Projects of this magnitude inherently carry risks. Maintaining the FSO's operational status and uptime is paramount, as any downtime or stranding would negate its benefits. The security of the mooring site is also a critical concern, given the vulnerability of offshore infrastructure to sabotage or interference. Furthermore, regulatory and environmental compliance will be closely monitored, consistent with all oil-handling facilities.

Other oil-producing countries have successfully implemented Floating Storage and Offloading (FSO) or Floating Production, Storage, and Offloading (FPSO) units for remote or conflict-affected fields. For example, many offshore West African fields utilise FPSOs to avoid the vulnerabilities of longshore pipelines. For Nigeria, converting an existing vessel into an FSO offers a more cost-effective short-term solution compared to constructing a new fixed terminal.

In the coming months, several key factors will be important to monitor:

The ability of OML 18 to consistently increase its production towards its 2025 goal of 50,000 barrels per day.
Whether export volumes through Bonny demonstrate the anticipated increases.
A measurable reduction in reported losses due to theft and spillages.

The outcome of Cawthorne could significantly impact future investment in Nigeria's coastal infrastructure.

The commissioning of FSO Cawthorne is a pivotal development for Nigeria's oil sector. It provides a strategic, high-capacity buffer to safeguard output from disruptions, aiding the country in achieving its ambitious production and export targets. Despite recent improvements in pipeline security, underlying vulnerabilities persist, and logistical bottlenecks continue to hinder the sector's full potential.

If Cawthorne fulfills its potential, promising improved reliability, reduced theft and downtime, and quicker export cycles, it will represent more than just a symbolic achievement. It will act as a practical catalyst for increased revenue, energy independence, and operational consistency. While it is yet to be determined if this will serve as a model for further locally-owned infrastructure along Nigeria's oil coast, the nation has undeniably made significant progress.

Source: https://www.msn.com/en-za/news/other/brics-series-nigeria-launches-first-fully-owned-oil-storage-vessel-cawthorne/ar-AA1O9FIq

Congratulations to my country

A win is a win

Ok no problem kudos to us

This is a welcome development.

Gradually i know in my life time, Nigeria will achieve meaningful developments.

Hope this is not another means of diverting our Oil.

how is this fully owned by Nigeria when Nigeria only has 55% share?

BAT is working more win to us Nigerian

Good development but it will be used someday for oil bunkery .
Nigeria is left far behind we more of this development

adams123:
how is this fully owned by Nigeria when Nigeria only has 55% share?

God bless you bro, how is 55% stake fully owned

adams123:
how is this fully owned by Nigeria when Nigeria only has 55% share?

Fully owned means, it's wholly belong to Nigerian owned companies.

Easyincome24:
The FSO's location near the Bonny export point enhances crude loading reliability for producers, lessening their reliance on extensive and vulnerable onshore pipelines. With a substantial 2.2 million barrel capacity, the vessel provides a crucial strategic buffer, allowing production to continue even if pipelines are shut down until export vessels arrive. The FSO boasts a double-hull configuration, advanced mooring systems, and integrated digital controls, all designed to bolster safety and mitigate the risk of spills or leaks. Tosin Etomi, Sahara's commercial lead, highlighted that this design is also expected to reduce carbon emissions associated with barge movements and improve evacuation safety.

It's an FSO. If you are in the industry, you will get it.

I hope they cooperate with pengasan unionism inline with labour Acts to protect workers rights

Lol una go receive sense by force

Easyincome24:
Source: https://www.msn.com/en-za/news/other/brics-series-nigeria-launches-first-fully-owned-oil-storage-vessel-cawthorne/ar-AA1O9FIq

How much does this vessel cost for a leading oil producing nation like Nigeria to buy its first in 2025?
Corruption!!

Hope it's not connected to tinibu or his family

adams123:
how is this fully owned by Nigeria when Nigeria only has 55% share?

It is Fully Nigerian. Owned by NNPC and sahara Energy

adams123:
how is this fully owned by Nigeria when Nigeria only has 55% share?

Don’t embarrass yourself

55% is for NNPC LTD
And the remaining 45% are also owned by other Nigerian energy companies.

This is my prayer too, I just wish things get better for us as a nation. I can't wait

beemedia1:
Gradually i know in my life time, Nigeria will achieve meaningful developments.

Just within 2 years and few months, we don Dey see development everywhere. We almost voted him out because some people said he’s ugly. Na handsome/lamba we for chop?

Bad belle won't say thank you Mr president

For once don't play politics with everything

Obi won't rush to make statements on this

Atuku won't see any good in this


But always looking for bad news as there signatures imply

Daniel058:
BAT is working more win to us Nigerian

What has Tinubu got to do with what private investors did with their hard-sourced funds? Let tinubu pay Nigerian JV funds in her JVs then we can say Tinubu. Let him revive all Nigeria sections in the JVs first.

So we're going to be celebrating an FSO in 2025?

A country that has been selling crude oil for donkey years?

TechBaron:
So we're going to be celebrating an FSO in 2025?

A country that has been selling crude oil for donkey years?

Well the choice is yours, instead of celebrating you can choose to do other wise.

TechBaron:
So we're going to be celebrating an FSO in 2025?

A country that has been selling crude oil for donkey years?

They should rather sell crude oil for monkey years and use the money buy Yachts?

I hope this article does not have a deceptive intent as it's not fully descriptive.

I fail to see how this FSO will allow continuous supply of crude when pipelines are shut down, it can only be possible if crude from the well heads at the bonny axis is sent to the vessel.

First off crude is aggregated and sent via pipes from different well heads to flow stations to delivery lines to trunk lines and to terminals. In this case,crude is aggregated from Gbaran,Egbema, Asa plus other axis and passed to the bonny terminal and from that point it is loaded to export vessels.

If there is any shut down on any of the upstream lines as a result of tampering, it will definitely cause a reduction in the Barrell per day (Bpd) crude production.

So before this, there was no storage vessel?

9jaBloke:
It's an FSO. If you are in the industry, you will get it.

I want to understand something pls.

So nigeria does not have where they store crude before the storage vessel(FSO) came?

ogredings:
I hope this article does not have a deceptive intent as it's not fully descriptive.

I fail to see how this FSO will allow continuous supply of crude when pipelines are shut down, it can only be possible if crude from the well heads at the bonny axis is sent to the vessel.

First off crude is aggregated and sent via pipes from different well heads to flow stations to delivery lines to trunk lines and to terminals. In this case,crude is aggregated from Gbaran,Egbema, Asa plus other axis and passed to the bonny terminal and from that point it is loaded to export vessels.

If there is any shut down on any of the upstream lines as a result of tampering, it will definitely cause a reduction in the Barrell per day (Bpd) crude production.

Love800:
I want to understand something pls.

So nigeria does not have where they store crude before the storage vessel(FSO) came?

there was never a storage vessel

adams123:
how is this fully owned by Nigeria when Nigeria only has 55% share?

I'm sure they meant fully Nigerian owned.

NNPCL owns 55%, however the other companies controlling the 45% are all wholly Nigerian.

So yes, that statement is correct technically.