How Offshore Projects Contribute $90bn revenue to FG

Deep offshore projects in oil and gas industry may have contributed about $90 billion revenue to the Federal Government as at end of 2016, according to the Managing Director, Total Exploration and Production Nigeria Limited, Nicholas Terraz.

Speaking at the 55th Business Anniversary event of the Oil Producers Trade Section (OPTS), an arm of the Lagos Chamber of Commerce and Industry (LCCI) in Lagos, on the success story of Egina project, which currently is Nigeria’s deepest offshore oil field, Terraz said the deepwater projects include Agip’s Abo; Shell’s Bonga; ExxonMobil’s Erha; Chevron’s Agbami, and Total’s Akpo and Usan offshore fields, pointing out  that about $60 billion investments have gone into these assets.

Furthermore, he said 560,000 man hours of human capacity development and training have been achieved across Egina contracts, while 60,000 tonnes of equipment was fabricated in Nigeria.

“Over 10 Nigerian companies including Ladol; Nigerdock; Dormanlong; EWT and Aveon, among others, carried out different contracts, especially for the floating production, storage and offloading (FPSO) vessel.

“The project has created 24 million direct man-hours in Nigeria, which constitutes 77 per cent of total workload performed on Egina project. The percentage is a remarkable increase from other man-hours carried out on other oil fields development operated by Total. For example, the total man-hour percentage on Akpo field project, whose development began in 2005, was 44 per cent and that of Usan project of 2008 was 60 per cent.

“Also, the Egina FPSO vessel has left Geoje in South Korea to Nigeria. It sailed off the Samsung fabrication yard on  October 31. Although the vessel started its long journey to Nigeria after several months behind the original scheduled date, it is exciting news to stakeholders in Nigeria’s oil and gas industry,” he said.

He stated further that it is expected that the journey will take 90 days to arrive at the yard of the Lagos Deep Offshore Logistics (LADOL) in Lagos, which may be January or early February 2018.

At LADOL facility, the six modules constructed by TechnipFMC, which are presently at the LADOL yard, will together with some other modules coming from Korea, be integrated into the FPSO at LADOL yard, a process that will take about six months to complete. That is the key local content part of the FPSO integration.

The FPSO will then leave LADOL yard in Lagos to Egina location, off southeastern Nigeria, where the risers, offloading Buoy and other subsea cables will then be hooked up to the FPSO before Egina first oil in November 2018 will be achieved.

Egina field is a deepwater acreage located in oil mining lease (OML) 130. It will commence production in 2018, and it will, at peak production, be giving an output of 200,000 barrels per day of crude oil.

The Egina oil field is located 150km off the coast of Nigeria. The field is being developed by Total Upstream Nigeria (24 per cent) in partnership with CNOOC (45 per cent), Sapetro (15 per cent) and Petrobras (16 per cent).

CREDIT TRIBUNE