10 July 2018

Nigeria Likely to Achieve Full FPSO Integration By 2026 - Total

Deputy Managing Director, Deepwater of Total Upstream Companies in Nigeria, Mr. Ahmad-Kida Musa, has stated that if the pace of project implementation in Nigeria is sustained over the next eight years, Nigeria would begin the full integration of Floating, Production, and Storage and Offloading vessels within the next seven to eight years.

Speaking at the just- concluded Nigerian Oil and Gas Conference and Exhibition in Abuja, Musa stated that this feat would be achieved if the right policies and investor-friendly legislation are put in place by government at all levels.

He said: "With several large deep-water discoveries still to be developed, such as Bonga South-West or Owowo, we know that the resources are there.

"All the yards involved in the development of the Egina project need patronage to maintain their infrastructure and improve competency levels of their human capital."

He noted that for Nigeria to continue to enjoy investments from oil and gas companies, sustainable production sharing contracts and gas terms must be put in place.

He said: "With several large deep-water discoveries still to be developed, such as Bonga South-West or Owowo, we know that the resources are there. All the yards that have been involved in the development of the Egina project need activity to maintain their infrastructure and the improved competency levels of their human capital.

"Both government and the Industry have a critical role to play here. In the past three years, to keep the industry alive, all the operators have been focusing on reducing the cost of new deep-water projects in order to make sure that they can sanction projects and bring value at $50 per barrel.

"While the operators are all trying to tighten their belt in line with the realities of the times, it is important that we put in place sustainable PSC and Gas terms as this is a fundamental requirement for continued investment in Nigeria's deep offshore."

He argued that the development of new projects is critical to maintaining industry capacities, stating that as the industry moves even further offshore, the need for this know-how cannot be over-emphasised.

"Nigeria must move up to a level where it is able to meet the competency needs of other new entrants within the Africa sub-region and be considered as a technological hub for the region," he noted.

Commenting on the Egina project, Musa said the project is currently at 93.3 per cent completion with the FPSO moored at the SHI-MCI yard at Ladol Island in Lagos following the integration of six locally fabricated topside modules out of the 18 that make up the topside.

According to him, Egina's impressive profile and the achievements are not an isolated case for Total, particularly regarding record achievements in local content development.

He said: "The Ofon Phase 2 Project on OML 102, which was designed to upgrade our Ofon field after 40 years of operation, also stands out as another example of our commitment to the ideals and objectives of the Nigerian Content law.

"On Ofon 2, we had more than 1,400 people working offshore and more than 1 million man-hours performed without any accident. The Ofon 2 living quarter's platform was the first to be constructed in Nigeria. During the project, local yards also fabricated 1,800-metric ton jacket bridges.

"Also, as part of preparation for Ofon 2, we assisted Nigerdock to procure equipment which was needed to accomplish the work scope they handled for the project. Another key Nigerian Content achievement of Ofon 2 has been the partnerships it forged between international contractors and local businesses and communities, thus accelerating technology transfer, training and the hiring of Nigerian workers. Overall, we achieved 65% Nigerian Content on Ofon Phase 2 Project."

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