By MICHAEL EBOH, With Agency Report
Total SA has commenced the development of the $15 billion (N2.4 trillion) Nigeria’s offshore Egina field as part of its plan to boost production.
The company said first oil from the field, which is part of the Oil Mining Lease, OML 130, is expected at the end of 2017, with output reaching 200,000 barrels of oil a day.
The company further stated that the project will be started after it obtained the necessary approvals from authorities in the oil and gas sector to award the main contracts.
Christophe de Margerie, Chief Executive Officer, Total, said the company will use proceeds from asset sales to pay dividends and develop oil and gas projects rather than make acquisitions.
The company also pledged to try harder to make large oil and gas discoveries in a bid to raise production.
The company said, “The Egina project calls for 44 wells connected to a 330 meter-long floating production, storage and offloading vessel which can store 2.3 million barrels, “Locally worked hours will reach about 75 per cent for Egina as part of a plan to boost local content of Nigerian projects.”
Total is operator of Egina with a 24 per cent interest. The other partners are Nigerian National Petroleum Corporation, South Atlantic Petroleum of Nigeria, Cnooc Limited and Petroleo Brasilero SA.