N20bn expected at current $67 per barrel, N305 exchange rate
By Udeme Akpan
LAGOS—There are indications that the coming on stream of the $16 billion Egina project will enhance the revenue profile of Nigeria and other stakeholders as plans have been concluded to export one million barrels in January, 2019.
Investigations by Vanguard over the weekend showed that with its 200,000 barrels per day, bpd output, the project will yield one million barrels for export within the first two weeks of production.
A top official of Total who confirmed the plan, but preferred not to be named said at the current $67.0 per barrel, the one million barrels will amount to $67 million (N20.0 billion), at the exchange rate of N305 per dollar.
He disclosed that: “The proceeds will benefit the major stakeholders – Total, that operates the project in partnership with the Federal Government through the Nigerian National Petroleum Corporation, NNPC, China National Offshore Oil Corporation, CNOOC; South Atlantic Petroleum Limited, SAPETRO and Petróleo Brasileiro S.A., Petrobras.
“Everything is moving according to plan. The floating production storage and offloading (FPSO), the largest ever installed in Nigeria (330-metres long), that was constructed in South Korea has already arrived Nigeria. Egina will certainly be completed towards the end of 2018.
“The production of 200,000 bpd will start in January for storage in the FPSO. Within the first two weeks, we will have the first one million bpd ready for export. Egina is a very big project that will make much impact on all stakeholders and Nigeria’s economy.
“The floating production storage and offloading, FPSO, that was constructed in South Korea has already arrived Nigeria. This facility is important as it will enable us to store the product for export.”
Egina is biggest project — Total
The Managing Director, Total Upstream Companies in Nigeria, Nicolas Terraz, had described Egina as the biggest project currently ongoing in the nation’s oil and gas industry, adding that ‘this is for me a collective success’.
“Together with our partners, we are kind of making history. It is the first time we will have such a big vessel and such an activity of integration taking place in Nigeria. So, I am grateful to the partners and the authorities.
“I think Total has taken the unique position to invest significantly in Nigeria when times are difficult. Two years ago, the oil price was below $50 per barrel, and still we have continued to invest in deepwater in Nigeria.”
The Egina field was discovered by TUPNI in 2003 within the Oil Mining Licence 130, some 200 kilometres south of Port Harcourt, Nigeria.
Besides revenue generation, Egina is expected to stimulate further development of local content in Nigeria.
The Group General Manager, NAPIMS, Mr. Roland Ewubare disclosed this at the reception of the FPSO in Lagos recently.
Consequently, he remarked that the Nigerian National Petroleum Corporation, NNPC and NCDMB have aligned with the project which has the capacity to sustain the nation’s economy.”