By Isaac Anumihe

Federal Government has suspended, with immediate effect, the Engina Floating Production Storage and Offloading (FPSO), which is due to arrive Nigeria in January 2018 from accessing the Nigerian waterways.

In statement, the General Manager, Corporate Communications of Nigerian Ports Authority (NPA), Mr. Abdullahi Goje, said the boats’ operation are barred in all its pilotage districts until the full settlement of debts accruing from unpaid pilotage dues by International Oil Companies (IOCs) and other beneficiaries of the services.

He said the decision to stop the operation of service boats to debtor companies followed the failure and refusal of the affected companies to honour their obligations to the authority despite several reminders over a couple of months to this effect.

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Given the fact that the companies, some of whose indebtedness run into tens of millions of dollars outstanding for over two years, ignored the advice given by NPA, the statement explained that the authority had no choice than to pursue this course of action, which has been communicated to all companies concerned.

On the Engina FPSO, whose main component is currently sailing from South Korea to be coupled with its top side being fabricated at LADOL Free Trade Zone, Tarkwa Bay, the statement explained that the refusal of the parties involved in the project to request for towage and pilotage service from the NPA (being the only organisation empowered to provide same in the country), is contrary to the laws of the country and would be resisted.

It explained that notice has already been given to promoters of the FPSO to the effect that the vessel would not be granted access to Nigeria’s waterways and that the NPA would pursue legal remedies in its determination to ensure that no organisation impedes on its mandate as provided in Part II of the Port Act.

Recall  that a  floating production storage and offloading (FPSO) unit is a floating vessel used by the offshore oil and gas industry for the production and processing of hydrocarbons, and for the storage of oil. A FPSO vessel is designed to receive hydrocarbons produced by itself or from nearby platforms or subsea template, process them …