Total Upstream Nigeria Limited has said that it will complete the Egina field development project with an initial budget provision of $16 billion (5.76 trillion) by the fourth quarter of 2018.
This was contained in a statement issued on Thursday by the company’s External Relations Manager, Mr Charles Ebereonwu, in Lagos.
According to the statement, “The project is expected to be completed in fourth quarters of 2018, within the initial budget of 16 billion dollars.
“The overall progress of the project stands at 88 per cent and a key milestone was achieved on October 31st, 2017 as the Floating, Production, Storage and Offloading unit (FPSO) started its journey to Nigeria.”
Ebereonwu said that the Egina field was discovered by Total Upstream Nigeria Limited in 2003 within the Oil Mining Licence 130 (OML130), some 200 kilometres south of Port Harcourt, Nigeria.
He said that the field is being developed by Total Upstream Nigeria Ltd in partnership with NNPC, CNOOC, SAPETRO and PETROBRAS.
He said that it will add 200,000 barrels per day to Nigeria’s oil production (approximately 10 per cent of the country’s total oil production).
It is also said to have the highest level of local content of any such project in Nigeria.
As the operator of the Egina project, Ebereonwu said Total Upstream Nigeria Ltd fully identifies with the government aspirations for Nigerian content and has been working closely with the Nigerian Content Development Monitoring Board (NCDMB) and Nigeria National Petroleum Company (NNPC) to maximise Nigerian Content on the project.
Ebereonwu said that Egina has achieved full local content with 24 million man-hours worked in Nigeria (77 per cent of total project workload), equivalent to a workforce of 3,000 persons on average over a period of 5 years
He stated, “60,000 tons of equipment to be fabricated in Nigeria; over 560,000 man-hours of human capacity development training across Egina contracts; construction of several large-scale new fabrication facilities in Nigeria and upgrade of several existing fabrication yards.”
He added that the Egina project included pioneering Nigerian content achievements such as the floating, production, storage and offloading unit (FPSO) of Egina, a 330-metre long vessel designed to process oil and gas from the Egina field.
He said that the project will be berthed at the quayside in Nigeria for integration of locally fabricated modules – a first for Nigeria.
“Egina has the highest number of FPSO topside modules (six) to be fully fabricated and integrated in Nigeria; the assembly of the Integrated Control and Safety System of the FPSO was fully performed in Nigeria.
“Egina includes the fabrication of the largest subsea equipment (manifolds, risers) ever completed in Nigeria, far above what was achieved in previous projects.
“The Egina project is a testimony to the fact that large deepwater projects can be developed with a very high level of in-country activities.
“Thus fulfilling the aspirations and objectives of the Federal Government of Nigeria in terms of employment generation, capacity building and industrial capability development,” he reiterated.
Egina project is described as the largest investment project currently on-going in the oil and gas sector in Nigeria and the first major deepwater development project launched after the enactment of the Nigerian Oil & Gas Industry Content Development (NOGICD) Act of 2010.