Pathway for Increasing Nigerian Local ContentPathway for Increasing Nigerian Local Content

Fabricating FPSOs in NigeriaFabricating FPSOs in Nigeria

Nigeria and Local Content

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“The board shall make procedures to guide, monitor,

coordinate and implement the Act to ensure and enforce measurable and continuous growth of Nigerian content in

all oil and gas operations in the country."

President Goodluck Ebele Jonathan upon signing the Local Content Bill 2010

The Critical Need for LC (Local Content)

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Nigeria is driving to increase local content and maximize the in-countryeconomic value of its natural resources:

Increased local content means more jobs

Increased local content stimulates the business environment

Increased local content increases GDP

Increased local content provides opportunities for a skilled

workforce to export it’s products…… a WIN - WIN situation for workforce to export it’s products…… a WIN - WIN situation for

all

Unfortunately billions of FPSO manhours still go to Korea and China

each year

Agbami FPSO – built in Korea$1.1 billion spend

The SSP FPSO designs offer a LC solution

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The SSP FPSO hull can be built without a dry-dock

For Nigeria this eliminates traditional hull fabrication hurdles

The SSP design provides a solution to Nigeria and it’s E&P partners for large FPSO’s

The SSP FPSO also provides

export value to Africa from Nigeria

SSP Construction – The Horizontal Slicing Principle

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Vertical hull blocks fabricated in large sections

Large dry-dock required for block assemblyOnly Korea, China and more recently Brazil have these capabilities

Horizontal hull blocks fabricated in small sections

No dry-dock required - assembly on dry landCan be built in Nigeria – NOW !

Execution Plan – Phase 1

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SECTION A-B (Accommodation and Upper Hull Sections)

Built in country –100% Local Content

70% of FPSO Hull

SECTIONS C-DInitially built outside country, eventually built in country

Project Execution – Phase 2 (100% Nigerian Built)

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NOW:Build A&B (70%)

locallyDeliver

Hull and Topsides can be perfectly “Mixed and Matched” to suit large and smaller local fabrication capabilities

100% Local Content on project No. 2

NOW:Mate Hull sections

and Integrate locally

NOW:Build C&D (30%)

externally

Proven Technology and No Dry Dock Required to Build

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• SSP’s simple block construction allows onshore fabrication.

• With one large 350T crane and adequate space an SSP FPSO can be built anywhere in the world.

• No dry dock = High Local Content

Simple Flat Plate Construction

Block Assembly

Block Construction

Conclusion

Petrolog-SSP bringing FPSO hull technology to Nigeria means:

• A step change in Nigerian Local Content for deepwater offshore projects

• Technology and skills transfer• Thousands of new jobs created• Millions of construction manhours • Millions of construction manhours

brought to Nigeria• Export potential

The SSP design has been technically accepted by major E&P companies including Chevron, Statoil and Shell