Egina Deepwater Project will Add 200 000 Bpd to Nigeria’s Production
Prior to the 35th Nigerian Association of Petroleum Explorationists (NAPE) Annual Conference and Exhibition, the association organised a Pre-conference Workshop. The Workshop which is a pre-cursor to the yearly event brought together the stakeholders in the oil and gas industry to brainstorm on the current state of the industry and chat the way forward.
Speaking at the Pre-conference Workshop, Managing Director of Total, Nicholas Terraz noted that a roadmap for Nigeria’s oil and gas industry in a diversified economy is relevant for understanding the role of operators especially as diversification has remained the only option for economic growth and development. “It is therefore necessary that we share our best practices and experiences in this gathering to enable us adapt and quickly take actions that will sustain us in future.”
The Total Managing Director stated that as a major oil and gas company in Nigeria, Total is proud to be one of the sponsors of the epoch event. The Total Group has been present in Africa for more than eighty years and has been involved in exploration activities in Nigeria for fifty-five years, “We have a broad and diversified portfolio in Nigeria, with activities spanning onshore, conventional offshore, deep water and LNG. Total has developed a strong partnership with the Nigerian National Petroleum Corporation (NNPC) and other partners.”
Terraz explained further that Total’s upstream branch plays a significant economic and social role in Nigeria, operating nearly 15% of the country’s production, “Nigeria, as one of our core areas of activities, is also crucial to the Total Group, accounting for 12 % of its equity production.” In the last five years, the company has invested approximately $10 billion in the country. The Total boss asserted that despite the challenging operating environment, the IOC is committed to investing in the country, “We, therefore, believe that when Nigeria prospers, Total also prospers.”
The Ofon Phase 2, for which drilling activities began in July 2015, is expected that at the end of the project in 2018, Ofon production will go up to 70,000 bpd. In June 2016, Total completed the onshore construction phase and commenced offshore works for the remaining part of the project which, according to Terraz “we are proud to say, we have achieved gas flare out in December, 2014. This is a major milestone in line with the aspiration of government.”
Terraz made a remarkable revelation that the company’s Egina deepwater development project, which is currently around 90% completion, will add 200,000 barrels of oil per day to Nigeria’s production by next year, “As a matter of fact, as I speak to you, the Egina FPSO is on the high seas enroute Lagos, Nigeria. The FPSO unit will arrive early next year and will berth at Africa’s first FPSO integration quay side at the SHI-MCI Yard (LADOL) for integration of six of the Topside Modules. The integration of these six modules of 8500 Tons will be the first of its kind in Nigeria.”
The IOC is delighted to note that reference is being made to it as the industry benchmark for Nigerian Content given its significant investment in local capacity development through its Ofon 2 and Egina projects. Egina has the highest deepwater local content ever in Nigeria. Amongst others, the development of SHI-MCI Yard on LADOL Island and significant work on seven Nigerian fabrication yards of various project scopes will continue to generate direct employment and indirect businesses for Nigerians throughout the life of the project. This is evident in the engagement of local contractors, investment in Human Capacity Development and contribution to building and expanding local fabrication yards.
Besides, over 4 million man-hours of fabrication works for the FPSO were executed in Nigeria with a safety record of zero fatal accidents. Five Nigerian construction yards: EWT and Ponticelli in Port Harcourt; Nigerdock, Dormanlong and SHI-MCI in Lagos were engaged for fabrication of various FPSO structures including the 6 Topside Modules to be integrated on the FPSO at SHI-MCI Yard. In addition to ongoing projects, Total is intensifying a lot of efforts on exploration and appraisal activities with two operated exploration and appraisal wells planned for 2017. One is in the conventional offshore and with the drilling of the second one in the deep offshore almost finalized; and with the results in line with prognoses. Total plan is to maintain aggressive exploration and appraisal wells drilling in order to play our part in increasing the hydrocarbon resource base of the country.
As part of Total’s success story in Nigeria, the company in 2016 with the Nigerian National Petroleum Corporation (NNPC) -Total E&P Nigeria Limited joint venture commenced the supply of gas to the Alaoji Power Plant in Abia State. This became possible after the completion and start-up of the Obite-Ubeta-Rumuji Pipeline and the Northern Option Pipeline (NOPL) projects by the NNPC/TEPNG JV in August 2016. The completion of these pipelines is an important milestone in the activities of Total in Nigeria. The NOPL is unique and strategic in meeting the government’s objectives of gas supply to the Nigerian domestic market.
Terraz posited further that in spite being busy with these important projects, the multinational never lose sight of the fact that it is a corporate citizen of Nigeria, and this status comes with certain responsibilities not just to its host communities but to Nigeria as a whole, “We shall continue to assist the authorities in providing infrastructure and access to quality healthcare and education to Nigerians and the communities that host our operations.” He promised that the company will continue to work with its partners to deliver various capacity development initiatives across the country. This is in addition to various high-level partnerships with Nigerian universities and Nigerian lecturers to develop capacity and exchange of experience. The Total MD disclosed that the revered IOC with more than half a century in Nigeria run the Institute of Petroleum Studies at the University of Port Harcourt, which is affiliated to the French Institute of Petroleum studies in Paris (IFP) and is providing world class skills for Nigerian oil and gas professionals.
He restated that Total will remain in business by continuing to adapt to the dynamic economic environment. This will be done through cost optimization but without any compromise on our safety standards. According to the Total helmsman “We shall continue to capitalize on strengths to secure future growth by leveraging on current market conditions to extend our production. Also, we believe that our position as the only integrated international oil company currently operating in Nigeria places us in the best position to create long-term value for the country.” Total will remain proudly committed to Nigeria and Nigerian content and will always continue to act in ways that promote these ideals.