* Builds biggest deepwater production capacity
* Brings first FPSO integration yard to Nigeria
* Sets new Nigerian Content standards
By Sopuruchi Onwuka
Before the close of 2018, French multinational oil major, Total, would have added a total capacity to produce 560, 000 barrels of hydrocarbon liquids per day from three oil fields in two Nigerian deepwater blocks.
Total declared weekend that the pace setting $16 billion Egina deepwater development project is on schedule and on budget, adding that the time frame for commissioning remains last quarter of 2018.
By then, the deep offshore production volumes attributable to Total would flow from Akpo field hosted in oil mining lease (OML) 130, formerly oil prospecting lease (OPL) 246; Usan field in OML 138, formerly OPL 222; and upcoming Egina field also in OML 130.
About 200,000 barrels per day (200 kbd) of the production volumes is expected from the Egina field, while Akpo and Usan fields are already producing separately with nameplate capacity for 180 kbd respectively.
Already, hull of the floating production, storage and offtake vessel (FPSO EGINA), which will form the main production facility, is being tracked on its sail from Korea to Lagos where it would spur topside integration activities.
Total Upstream Nigeria Limited (TUPNI) discovered the Egina field in 2003 within the OML 130, some 200 kilometres offshore Port Harcourt. The company operates the field in partnership with China National Offshore Oil Company (CNOOC), South Atlantic Petroleum (SAPETRO) and Petroleum Brasiliero (PETROBRAS) under Production Sharing Contract (PSC) with Nigerian National Petroleum Corporation (NNPC} which is the asset concessionaire.
The company stated that the field development project which started in 2013 has reached 88 percent completion, adding that key production facilities await the FPSO EGINA hull for integration.
When Egina comes online by last quarter of next year, Total would have competed a hat trick development programme and stand tall as the undisputed production factor in the high risk but proportionately rewarding deepwater oil and gas play in Nigeria.
Besides completing the company’s triple field development programme, Egina is set to push Total’s operated production to over 700,000 kbd, a volume that would also make the company a contender for the country’s top producer.
That means that the company’s operated field development investments projects in Nigeria as well as actual output volumes would by next year confer it with a status that would be greater that total production capacity of sovereign producers like Equatorial Guinea, Gabon and Ghana all combined.
With the deepwater development programme, Total alone would be responsible for 30 percent of Nigeria’s total production capacity and 56 percent of the country’s total output from the deepwater. New development projects might alter the percentages, but the company’s hat trick programme would make it difficult to dislodge Total from Nigeria’s deepwater leadership position in the short to medium term.
Whereas there have been other world class field development projects in Nigerian deepwater terrain, the Egina development project resonates across the Nigerian petroleum industry for its Nigeria Content profile. The project receives industry applause for the heap of value it delivers in the Nigerian economy and the stimulus it provides the country’s local industrial development.
Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, said at the last Practical Nigerian Content (PNC) Seminar in Uyo, Akwa Ibom State, that Egina has elevated Nigerian Content profile of field development projects in Nigeria to all time high of 77 percent.
He explained that 77 percent of the $16 billion Egina field development budget was deployed in patronage of local goods and services, a deliberate strategy to significantly raise the country’s gross domestic product (GDP) with deep pocket upstream petroleum industry projects.
Before now, upstream oil and gas industry in Nigeria had remained an enclave that provided no stimulus to the domestic economy as key industry services and products were procured abroad on the pretext that infrastructure, technology and capacity were deficit in the domestic environment.
Government evolved the Nigerian Content policy and subsequently enacted the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 to trap down the economic benefits ancillary to upstream petroleum industry activities. It also established the NCDMB to drive systems and processes that ensure compliance and delivery of policy goals.
Total stated that it has always exceeded government’s local content targets in all its projects in the country, adding that the objectives of the policy falls in line with its business principles of developing capacity in the operating environment and delivering industry benefits to host communities.
The company also pointed out that apart from exceeding industry targets on Nigerian Content, it has progressively challenged the domestic environment with job and contract opportunities that translate to significant growth in the local content profile of operated projects.
According to project factsheets available to The Oracle, Total achieved 44 percent of Nigerian Content in the 2005 Akpo development project, as against government target of 18 percent. It grew the performance to 60 percent in its 2008 Usan development project before setting the new industry local content benchmark of 77 percent with the 2013 Egina development project.
“Egina has the highest level of local content of any such project in Nigeria,” Total stated.
“As operator of the Egina project, 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 maximize Nigerian Content on the project.”
Total listed key Nigerian Content features of the Egina project include “24 million man-hours or 77 percent of total project workload, equivalent to a workforce of 3,000 persons on average over a period of 5 years.”
On capacity development and training, it stated that over 560,000 man-hours of human capacity development training was conducted across Egina contracts.
The company stated that, in terms of in-country facility production, 60,000 tons of equipment are being fabricated in Nigeria; while several large-scale new fabrication facilities were constructed and several existing fabrication yards upgraded to lay enduring infrastructure in Nigeria.
Total also attributes Egina project with several pioneering Nigerian Content achievements, explaining that the 330-meter long FPSO EGINA sets industry record for hosting the highest number of locally fabricated topside modules and also for being the first ever FPSO for in-country topside integration.
To achieve 77 percent Nigerian Content of a $16 billion development project, The Oracle reports, entails huge investments in upgrading local capacity, infrastructure and facilities in order to meet stringent global quality standards for deepwater operations.
Thus, Egina project formed the basis for Samsung Heavy Industries (SHI) to sink huge investments in developing local topsides integration yard in Lagos, the first of such technologically advanced ship building infrastructure in Africa.
Apart from SHI, other local fabrication yards, pipe producers, coating companies and sundry service providers including Dorman Long, NigerDock, GIL Automation, Aveon, Obijackson Group, FMC Technologies, PCNL, Ponticelli and SCNL all benefitted from the opportunity for facility upgrades.
“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 including manifolds and risers ever completed in Nigeria, far above what was achieved in previous projects,” Total boasts.
“The Egina project is 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.”
The Oracle reports that Egina field development rapidly follows commissioning of the Usan deepwater field by Total in OML 138.
According to records available to The Oracle, 60 percent of total project engineering and fabrication hours were delivered in Nigeria with over 14 million man hours of jobs delivered in-country.
Some 12 contractors collaborated to deliver 180,000 man-hours of detailed engineering jobs and 90,000 man-hours of design engineering training, project control training, post-training and welders training.
On the fabrication side, Nigeria hosted production of 7,500 tons of topside components including Flare Tower, Helideck, Water Caissons, Crane Pedestals, Pressure vessels and many other intricate components.
Also, foreign and local contractors cooperated on delivery of and onsite integration of 3,500 tons of risers, mooring protection, P4 module.
On umblicals, flowlines and risers (UFR), 175,000 man-hours engineering, 69,000 man-hours of training and post-training for the USAN development project were executed in-country.
Project factsheet shows that the subsea production system (SPS) for Usan project has 45,000 man-hours of detailed engineering work and 30,000 man-hours of training including post-training as well as fabrication of foundation piles, all the 8 manifolds, all Jumpers and assembly of entire 12 christmas trees were delivered by local contractors.
Total states that “overall Local Content on the Usan Project was successful as the contractual scope was achieved without any schedule impact on first oil.”
Before Usan, Total had made its first development toe thrust in the deepwater with operated Akpo field in OML 130.
Akpo delivered about 26,000 tons in local fabrication, and some 11 million man hours in local employment.
Total states that it hinged its Nigerian Content plan for Akpo field development project on the principles to ensure that all works and services that could be performed in Nigeria are carried out in-country, and also to develop potentials in Nigeria through personnel training, exposure, and increased capacity building.
According to the project profile, Akpo development kicked breakthroughs in technological activity in Nigeria’s industry service sector. Nigerdock fabricated for the first time in Nigeria an OLT Mooring Buoy TURN TABLE. A new White Metal Workshop was set up by Globestar. Cameron expanded its base facilities in Onne, to cope with her local content scope on the project.
Akpo project delivered some nine million man hours of work, 26,000 tons of Steel fabrication and sparked off investments in new infrastructure at SCNL, Socotherm and Nigerdock.
Besides, Akpo was the first deepwater project that engaged indigenous marine vessels with enlistment of STARZ Investments Company Limited, and ARCO Marine for operations support vessels and security vessels respectively.
The company states that deep offshore is one of its growth avenues in Nigeria with which it proposes to groom a new crop of indigenous service providers with word class skills and capacity.
“Total deploys an assertive policy to build in-country capacity. Amongst other things, the company is helping Nigerian contractors to build deep offshore expertise,” the company stated in Egina project factsheet. It adds that “Egina project is a contributor to the realization of Nigeria Content objectives through generation of local employment opportunities, transfer of technology and capacity development.”
With the three value packed deepwater projects, total has concluded firm strides across the full hydrocarbon space in Nigeria, straddling onshore, swamp, shallow water and deep offshore terrains with high impact exploration, development and production operations.