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EGINA: SETTING THE BENCH MARK FOR NIGERIA LOCAL CONTENT

Engr. Ahmadu Kida-Musa, Deputy Managing Director, DeepWater District, Total

Egina, an initiative from Total Exploration and Production (E&P) company became a household name in Nigeria’s oil and gas space owing to state-of-the-art technology that brought the Floating, Production, Storage and Offloading (FPSO) facility to existence. The FPSO is Total’s commitment and a master piece technological expertise in Local Content development in Nigeria.
Besides, many people do not believe that the mega project can be done in Nigeria but due to the company’s tenacity towards better energy to the Nigerian people and the oil industry, it ensures that it follows it through and brought the project to bear. At present, Egina has added additional 200, 000 barrels to the country’s oil production.
Speaking about the mega project at the recent Nigeria International Petroleum Summit (NIPS), Deputy Managing Director (DMD), Deep Water of Total, Engineer Ahmadu-Kida Musa disclosed that the FPSO left Lagos Deepwater Logistics (LADOL) yard on August 26th, 2018, to its destination and by 29th of December it delivered its first oil.
Kida said Nigeria’s production is being supported by deepwater which is about 40% of the country’s crude oil production. Over the years, the number has been growing immensely. There are seven FPSO’s in the country and Total built three of them. It started with Apo, Usan that is defunct, and Egina being the latest in the company’s effort. Egina adds 200 000 barrels to 40% of Nigeria’s production in deepwater.
Emphasizing on the FPSOs which Total has constructed in Nigeria, Kida asserted that in 2005 Apo was about 44% in terms of expenditure, Usan moved up to 60% while record breaking Egina project went up to 77% the highest that any project has achieved in Nigeria.
Egina is situated within the geographical contest of OML 130 and located with about 150 kilometres offshore in about an average of ½ kilometre of water bed. The capacity is 200 000 barrels per day at Plateau.
Kida stated that Total is able to achieve this great feat with regards to Egina owing to immense contributions of its partners. The DMD commended the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Engineer Simbi Wabote. He “Showed excellent collaboration between us and our partners.” He added “But then the active interface that we had with NCDMB, it was laborious no doubt, it was a tense moment and there were times when we as company (Total) were a bit doubtful of some aspect they introduce but we took the bold step and actually believe in it. If you believe, you can do it.”
The Total boss pointed out that Egina has set out a bench mark for Local Content space in Nigeria and the company is proud to be part of it. In terms of investment for the project, $16 billion plus was budgeted and completed with 10% less of its original budget. It was completed within its time frame and budget as well. Everything was done in Nigeria, “We can do it in Nigeria and be proud of what we do in Nigeria.”
He advocated that it is only project that can sustain the country’s national production and urged the government to provide conducive environment for operators to move forward and consolidate on gains made in the industry.
According to him, part of the success of Egina lies on trust, Total understood and believed in the capacity of Nigerians that local operators can deliver if given the right environment.
On the notion that the company may not embark on other projects after achieving a great feat, Kida made it known that the Preowei project is in the works. As soon as the company completes procedures for the project, it will take action on it. The DMD said it will be a fast tract project and lessons learnt from Egina will be integrated on it. Achievements made in Egina will also be surpassed. He enjoined International Oil Companies (IOCs) to be bold and open their flanks as they embark on projects.
Giving his perspective, Deputy Project Manager of Engina, Kayode Akiode, noted that there was no loss time injury in the project as no fatality was recorded since safety was not comprised throughout the offshore campaign. According to him, seven different vessels are working offshore and 482 days have been recorded without loss time injury which represents about eighty million man hours of work.
Akiode submitted that key milestones have been realized over the years on the FID which took place in 2013, the steel cut and development of in-country yard were done same year. In 2014, the wells were being drilled before the FPSO came to Nigeria from Korea to LADOL yard, January 2018. Expectedly, in order to develop Local Content, all the integration works were done in LADOL yard.
Akiode stated that Egina is a project that is full of technological expertise with local commitment and significant input of local workforce. Incidentally, Egina was the first project launched in Nigeria after the Nigerian Content Act was signed in 2010. This propelled the commitment Total management to ensure that Nigerian Content is totality for the project.
Showcasing Egina project, the Total Deputy Manager Project said, the engineering aspect of Egina was done by in-country service companies with major actors of the project in Lagos. A total of 297000 man hours were recorded.
In terms of manufacturing, surprisingly, many of the equipment of Egina were manufactured in Nigeria including cables, paints and other high technological facilities were also exported to Korea. Egina created avenue for capacity and infrastructural development through improvement of local personnel.
In the course of Egina project, Total almost had issues with the Customs as the government agency was startled on how major components were done in Nigeria and exported to Korea instead of the other way round. The agency felt it was impossible for such feat to be achieved through local technology.
Egina has advanced Nigeria’s Content development with over forty-six million man hours was recorded in the course of the project. It has led to man power and infrastructural development with more than six hundred thousand man hours training on the mega project.

Energy Focus
Editor at Energy Focus Report.
https://www.energyfocusreport.com

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