Nigeria is banking on the 200,000 b/d offshore Egina project to boost its production by over 10%, as the Total-operated field is expected to come online later this year.
Nigerian oil output has stagnated in the past decade due to instability in the restive oil-rich Niger Delta and underinvestment in its oil sector along with a lack of infrastructure.
Nicolas Terraz, managing director, Total Upstream Nigeria, speaking at an industry event in Lagos on Sunday said the $16 billion deepwater project is the biggest oil and gas investment in Nigeria with the startup expected in Q4 this year.
No new big oil fields have started up in Nigeria in nearly five years which is what makes this project pivotal for Africa’s largest oil producer.
“In the operational phase, Egina will add 200,000 b/d to the production of the country, representing about 10% of Nigeria’s current total capacity,” Terraz added.
This year the country’s oil ministry acknowledged that it needs to start prioritizing the approval of oil projects with international oil companies and review the fiscal terms in agreements with foreign partners to develop deepwater oil fields.
The Egina FPSO is a newly built spread moored FPSO with oil and gas processing and water treatment facilities and can store up to 2.3 million barrels of processed oil in its hull, Terraz added.
Nigerian crude oil and condensate production has ranged between 1.7 million and 2 million b/d this year, still far below its capacity of 2.2 million b/d as pipeline sabotage in the Niger Delta has persisted.
But production has recovered in the past 12 months after output plummeted to near 30-year lows of 1.1 million b/d in mid-2016 due to renewed militancy in the Niger Delta.
Meanwhile, the Vice President, Yemi Osinbajo has lauded the successful anchor of the Egina FPSO, saying it is not just a celebration of local content, but a resounding testimonial of success of Ease of Doing Business in Nigeria.
Osinbajo said this during his visit to LADOL Offshore facility within the Lagos Ports Complex (LPC).
The statement was issued by NPA’s Assistant General Manager, Corporate Communications, Malam Isa Suwaid.
The vice president urged stakeholders within the industry to compete favourably and appreciated the facility.
“Excellent work has been done here and they would be sacrosanct industry to the Economic Recovery and Growth Plan (EGRP) of government in the long run as would be evident in the nation’s GDP in no distant time.
“I congratulate the Local Content Board for contributing effectively at bringing the facility and project to fruition,’’ Oshinbajo said.
The vice president called for the support of stakeholders in the Federal Government’s fight against corruption in order to join other nations freed from corruption.
The Managing Director of NPA, Ms Hadiza Usman, said that the successful berthing of Egina would facilitate trade.
Usman said that Egina berthed in Lagos as a result of operational efficiency and robust synergy between NPA and LADOL, including other stakeholders.
She noted that it was a testimony of enhanced capacity of NPA to handle greater responsibilities in the sector.
The NPA boss urged other operators to emulate the investments made by Total, LADOL, Samsung Heavy Industries (SHI), adding that government ventured into the provision of a level playing field through anti-monopoly policies which had yielded great dividends.
“NPA, hereby encourage prospective investors to explore this and other opportunities that the reforms of our operations has engendered as we assure of NPA’s willingness to facilitate these ventures.
“We must, however, advise business organisations to ensure strict compliance with the country’s statutory rules and regulations.
“The multiplier effects of local content policy is evident in visible technological transfer; accrued revenue to the nation; employment creation; reduction in capital flight; attraction of hub status for the oil and gas sector in Nigeria amid the cost-saving attributes.
“We appreciated vast unflinching supports accorded the NPA management, LADOL and other stakeholders in this respect.
“The Egina project is a statement by government that the quest for hub status is real.
“Industrialisation is real and that private indigenous companies are able to thrive and support international projects and investors,” Usman said.
Other stakeholders who appreciated the LADOL facility and operation amidst the Egina FPSO project celebration were the Minister of State, Industry, Trade and Investment, Hajiya Aisha Abubakar; and Chairman LADOL, Mr Ladi Jadesimi.