OML 130: Total starts production in Egina field offshore Nigeria

by Ike Obudulu Posted on January 3rd, 2019

France-based Total said Wednesday it started production in the Egina field in offshore Nigeria which will eventually reach 200,000 barrels of crude oil per day.

The new production, which will represent 10 percent of Nigeria’s total output, came after Egina deployed its largest floating platform ever built to develop the field, which is located 93 miles offshore Nigeria’s coast at a 5,250-feet water depth, the company said on Wednesday.

Total advanced its global deepwater campaign with the launch of production from the Egina Field 150 km offshore Nigeria.

The Egina floating production, storage, and offloading vessel, which Total says is its largest ever, will be connected to 44 subsea wells and produce up to 200,000 B/D of oil. The field lies in 1600 m of water on Oil Mining Lease (OML) 130.

Total says the project was developed 10% under budget, resulting in savings of more than $1 billion, driven in large part by a 30% reduction in average drilling time per well. The French major’s operating costs in Nigeria have been slashed by 40% during the last 4 years, Arnaud Breuillac, Total president, exploration and production, said in a news release.

Efficiencies from the Egina project could be further leveraged via tieback opportunities from other fields in the area. Breuillac noted that “some upside potential nearby remains to be developed,” including a possible tieback of the Preowei discovery to the Egina FPSO, which the firm is currently studying. The Preowei field, also on OML 130, was assessed in 2017 and could add output of 70,000 BOE/D. A final investment decision (FID) on Preowei is expected to be made in 2019.

Discovered in 2003, the Egina Field is the second development to come online from OML 130 following the Akpo Field, where production began in 2009.

Total Upstream Nigeria Limited operates OML 130 with a 24% stake in a joint venture with state-owned Nigerian National Petroleum Corporation. Other interest owners are South Atlantic Petroleum, 15%; CNOOC E&P Nigeria Limited, 45%; and Petrobras Oil and Gas BV, 16%.

Growing West African Production Hub

Africa, along with Brazil and the US Gulf of Mexico, is one of three primary deepwater regions in which Total plans to tap into vast oil deposits to boost companywide output in the coming years. The firm’s Nigeria production averaged 267,000 BOE/D in 2017 and continues to gain momentum.

Other big projects brought on stream in West Africa over the last couple of years include Moho Nord off Congo and Kaombo off Angola. A second Kaombo FPSO on Block 32 is expected to start up this year, eventually bringing combined output to 230,000 B/D. The two FPSOs, which are converted very large crude carriers, will be connected to 59 wells from six fields.

On Block 17 off Angola, Total last May took an FID on the 40,000-B/D Zinia 2 project, the first of several possible short-cycle developments on the block. Additional FIDs were made later in the year on the CLOV Phase 2 and Dalia Phase 3 projects, with startups expected in the next 2 years. The projects will keep Block 17 plateau production above 400,000 B/D of oil until 2023, Total says.

The firm also in December added two exploration and production blocks in Mauritania’s deep waters. It will operate Blocks C15 and C31 with a 90% interest, with state-owned Societe Mauritanienne des Hydrocarbures et de Patrimoine Minier holding 10%. Total plans to drill an exploration well on its existing Block C9 in 2019.

Total’s positions in Mauritania, Senegal, Ivory Coast, and Nigeria make up half of its acreage in Africa.

Image: Total’s Egina floating production, storage, and offloading vessel is its largest ever, weighing some 220,000 tonnes and measuring 330-m-long by 60-m-wide. It’s equipped to produce up to 200,000 B/D and hold up to 2.3 million bbl of oil. Source: Total.

EARLIER: OML 130: Egina Field Adds 200000 BPD To Nigeria Oil Production From 2018 – Total E&P CEO

Total E&P Nigeria on Wednesday said that the company’s multi-billion dollar Egina Field Development will come on stream in 2018 boosting Nigeria’s daily oil production by 200,000 barrels.

Mr Biodun Afolabi, Executive Director, Corporate Affairs and Services of Total spoke on behalf of Nicolas Terraz, the CEO of Total E&P Nigeria at the on-going 2017 Nigerian Annual International Conference and Exhibition of the Society of Petroleum Engineers in Lagos

He restated the company’s unflinchingly commitment to the future of Nigeria. Nicolas Terraz, the CEO of Total E&P said:

“The company is at present along the value chain from upstream to the downstream sector where Total is a leader, with close to 550 service stations across the length and breadth of Nigeria. In the last five years, the Total Group has invested US$10 billion in the Nigerian oil and gas sector. Today, we have expertise and strong positions in the onshore, offshore and deep offshore. Our Egina Field Development, which is near completion, is expected to add 200,000 barrels per day to Nigeria’s output, when it comes on stream in 2018,”

He said the 2017 conference and exhibition of the society provided a platform for common objective of positioning the industry to absorb the vagaries of fluctuating price regimes, uncertainties and other challenges within the operating environment.

Egina oil field

The Egina oil field is located 150km off the coast of Nigeria. The field is being developed by Total Upstream Nigeria (24%) in partnership with CNOOC (45%), Sapetro (15%) and Petrobras (16%). Egina is the third deep offshore development of Total in Nigeria. The field is currently under development and the production is scheduled to begin in 2018.

Located about 20km away from Akpo field, Egina field lies within the oil mining lease block (OML) 130 and covers an area of around 500 square miles. It is situated at a water depth of up to 1,750m.

Egina Oil Field: Discovery

The field was discovered in December 2003 when the Egina-1 well was drilled. Following the discovery, the appraisal well Egina-2 was drilled in October 2004. The appraisal programme and seismic data processing resulted in the Egina-3 well drilling in September 2006, which occurred at a water depth of approximately 1,500m. Following this, Egina-4 was drilled in November 2006 and Egina-5 was drilled in January 2007.

Egina Oil Field: Oil reserves

The five wells on Egina field encountered between 60m and 80m of oil in Miocene sands. The oil reserves are estimated at 550 million barrels. The light oil is rated at 28° API.

Egina Oil field development

The Egina field was initially planned to be developed as a subsea tieback to the Akpo floating production storage and offloading vessel (FPSO). Major discoveries in the area, however, lead to the standalone development of Egina.

Basic engineering studies of the field were begun in 2008. The development plan was approved by the Nigerian authorities in 2009.

Pre-qualification tenders were invited for the engineering, procurement, construction and supply of essential generators packages. These packages will be integrated on a FPSO unit. The FPSO development project involves the design, procurement, construction, hook-up, pre-commissioning, transportation and commissioning of the FPSO hull and topsides.

The first comprehensive front end engineering design (FEED), carried out by J P Kenny and MCS Kenny, was completed in July 2010.

Egina Oil field infrastructure

“Egina includes an FPSO unit, an oil offloading terminal and various subsea production systems.”
Egina field infrastructure will include an FPSO unit, an oil offloading terminal and subsea production systems such as risers, 52km of oil and water injection flowlines, 12 flexible jumpers, 20km of gas export pipelines, 80km of umbilicals, and subsea manifolds.

Total began the development of a new FPSO for the project. The FPSO will measure approximately 330m in length, 61m in width and 33.5m in depth, and is expected to have an oil storage capacity of approximately 2.3 million barrels. The FPSO will have topsides modules with a gross dry weight of 34,000t.

Egina Oil Field: Contracts

In July 2009, Total awarded a FEED contract to Dover Engineering. Dover also signed an agreement with J P Kenny and MCS Kenny to facilitate project delivery.

The contract provides scope for the comprehensive design studies and engineering assessments, development of specifications, documentation and technology studies, and design of the umbilicals, flowlines, risers and the subsea production systems used in the field development.

“It is estimated that the field will produce 200,000 barrels of oil per day.”
Total signed a major contract with Abbott Risk Consulting (ARC) in 2008 for safety engineering design studies on the Egina FPSO project. Under the contract, ARC is responsible for conducting fire risk analysis, explosion modelling, gas dispersion modelling and quantitative risk assessment. ARC will also carry out a range of other studies to conclude a number of design options.

Saipem received a $3bn engineering, procurement, fabrication and installation (EPCI) and pre-commissioning contract for the project in June 2013. In the similar year, FMC Technologies was awarded a $1.2bn engineering, procurement, construction and commissioning (EPCC) contract in the same year to provide subsea production systems for the project.

In July 2013, Technip secured a contract to provide steel tube umbilicals of production, water injection and subsea isolation valve (SSIV) types.

FMC Technologies subcontracted Aveon Offshore in January 2014 to provide fabrication services for the subsea structures at the field. First steel for the same was cut in December 2013.

Vallourec was contracted to supply premium subsea line pipe for the project, in October 2014.

Samsung Heavy Industries (SHI) received a turnkey contract from Total for the Egina FPSO. The scope of the contract includes design, procurement, construction, delivery and trial operations.

Nexans was subcontracted by Samsung Heavy Industries (SHI) to deliver cables for the Egina FPSO project. MTE was contracted by SHI to deliver design, engineering, fabrication services and additional heat shields for the Egina FPSO, in February 2016.

Egina Oil Field: Production

The Egina field is expected to come on stream in 2018. The production from the Egina-5 well is estimated to reach 12,000 barrels a day.

The oil field is expected to produce at a peak production rate of 200,000 barrels per day, whereas the production capacity of the FPSO will be 208,000 barrels a day.

Author

Ike Obudulu

Ike Obudulu

Versatile Certified Fraud Examiner, Chartered Accountant, Certified Internal Auditor with an MBA in Finance And Investments who has both worked for and consulted with some of the world's largest companies on main street and wall street in over 20 countries, Ike brings his extensive reporting and investigations experience to bear on his role as Chief Editor.
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