• Nigeria commissions first nationally owned oil storage unit, FSO Cawthorne

• Facility stores 2.2M barrels, reducing reliance on foreign infrastructure

• Move supports export control, cuts losses from theft and pipeline issues

Nigeria has commissioned its first wholly nationally owned Floating Storage and Offloading (FSO) unit, marking a key milestone for Africa’s largest crude oil producer, according to official information released on Wednesday, October 8.

Until now, the Nigerian government lacked its own floating facility to handle crude exports directly, relying instead on infrastructure owned by international partners such as Shell, TotalEnergies, Chevron, and Eni, or occasionally chartering platforms from private operators.

The new unit, FSO Cawthorne, is anchored off Bonny Terminal and marks a major step in NNPC Ltd’s strategy to regain control of the crude export value chain. The FSO can store up to 2.2 million barrels of oil, allowing Nigeria to load tankers for export without depending on facilities run by foreign companies.

NNPC Ltd spearheaded the project in partnership with Sahara Group, Eroton Exploration & Production, and Bilton Energy under Oil Mining Lease (OML) 18, which aims to produce nearly 50,000 barrels per day by year-end.

Industry observers note that the FSO also gives Nigeria a means to reduce its dependence on onshore and nearshore pipeline networks, which are often affected by leaks, logistical delays, and chronic crude oil theft in the Niger Delta.

In 2022, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) estimated that theft and pipeline vandalism caused losses of around 200,000 barrels per day (b/d), before theft declined gradually in 2023. The government has said it intends to use tighter infrastructure control to end the problem for good.

This initiative forms part of Nigeria’s broader push to retain a greater share of its oil value, while reflecting the strategic reorientation of NNPC Ltd, which became a commercial company in 2022 and now aims to operate as an integrated energy player rather than a revenue collector. The FSO Cawthorne complements other national initiatives, including the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries.

Abdel-Latif Boureima