France's Total has announced that it has started up production from the gas Egina field, off the coast of Nigeria.
The field is located in around 1,600 meters of water depths, 150 kilometers off the coast of Nigeria. At plateau, the Egina field will produce 200,000 barrels of oil per day, which represents about 10 per cent of Nigeria’s production.
The Floating Production Storage and Offloading (FPSO) unit used to develop the giant Egina field is the largest one Total has ever built. Six of the eighteen modules on the FPSO were built and integrated locally, and 77 per cebt of hours spent on the project were worked locally. Startup has been achieved close to 10 per cent below the initial budget, which represents more than 1 billion dollars of CAPEX savings, according to Total.
“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. Egina will significantly boost the Group’s production and cash flow from 2019 onwards, and benefit from our strong cost reduction efforts in Nigeria where we have reduced our operating costs by 40% over the last four years,” stated Arnaud Breuillac, President Exploration & Production.
Initially discovered in 2003, the Egina field is the second development in production on the Oil Mining Lease (OML) 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.
Total Upstream Nigeria Limited operates OML 130 with a 24 per cent interest, in partnership with Nigerian National Petroleum Corporation (NNPC), South Atlantic Petroleum - SAPETRO Ltd. (15 per cent), CNOOC E&P Nigeria Limited, a wholly owned subsidiary of CNOOC (45 per cent) and Petrobras Oil and Gas BV (16 per cent).