Total’s Egina Achieves First Oil, Boosts Nigeria’s Production

French oil major Total has started oil production from its Egina field offshore Nigeria. Total which started up production on December 29, 2018, has announced in a statement released on January 3 2019, that Egina deepwater oilfield had achieved first oil production, helping to push Nigeria’s oil output beyond 2.09 million barrels per day in December. The French oil major said the Egina field, which is located in around 1,600 meters of water depths, 150 kilometers off the coast of Nigeria, will at plateau produce 200,000 barrels of oil per day, which represents about 10 per cent of Nigeria’s production, according to a statement on its website. Total described the Floating Production Storage and Offloading unit used to develop the giant Egina field as the largest one it had ever built, saying that the project also involved a record level of local contractors.
According to the statement, six of the 18 modules on the FPSO were built and integrated locally, and 77 per cent of hours spent on the project were worked locally. It said startup had been achieved close to 10 per cent below the initial budget, “which represents more than $1bn of capex savings, due in particular to excellent drilling performance where the drilling time per well has been reduced by 30 per cent.” The President Exploration and Production at Total, Arnaud Breuillac, said,“Total is proud to deliver a project of this size under the initial budget and to contribute to the development of Nigeria’s oil and gas sector by generating employment as well as building industrial capability.”
He said Egina would significantly boost the group’s production and cashflow from 2019 onwards, and benefit from its strong cost reduction efforts in Nigeria where “we have reduced our operating costs by 40 per cent over the last four years.” “Furthermore, some upside potential nearby remains to be developed and we are studying in particular Preowei discovery tie-back to the Egina FPSO,” Breuillac added. According to the statement, initially discovered in 2003, the Egina field is the second development in production on the Oil Mining Lease 130 following the Akpo field, which started-up in 2009.
“The Preowei field is another large discovery made on this prolific block for which an investment decision is scheduled for 2019,” it added. Total Upstream Nigeria Limited operates OML 130 with a 24 per cent interest, in partnership with the Nigerian National Petroleum Corporation; South Atlantic Petroleum (15 per cent); CNOOC E&P Nigeria Limited, a wholly owned subsidiary of CNOOC Limited (45 per cent), and Petrobras Oil and Gas BV (16 per cent).
Nigeria’s daily crude oil production increased to about 2.09 million barrels in 2018, translating to a nine per cent rise when compared with the 2017 average daily production of 1.86 million barrels, according to the NNPC.

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