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Over $1bn Saved On Egina’s Capex Budget, Total Says

Egina FPSO

Oil giant Total says it delivered the Egina project with almost 10percent below the initial budget at start-up, with capex savings of more than $1 billion.

The company said one of the main factors for the savings was strong drilling performance, with drilling time per well cut by 30percent from predicted levels, according to Offshore.

Production started from the deepwater Egina field, 150 km (93 mi) offshore Nigeria, on December 30th, 2018, according to the Group Managing Director of the Nigerian National Petroleum Corporation, Dr Maikanti Baru, in his 2018 year end message

According to operator Total, the field will deliver 200,000 b/d of oil at peak, equivalent to 10percent of Nigeria’s total oil production. The FPSO is the company’s largest to date. Six of its 18 topsides modules were constructed and integrated locally.

Arnaud Breuillac, President Exploration & Production, said: “Egina will significantly boost the group’s production and cash flow from 2019 onwards, and benefit from our strong cost reduction efforts in Nigeria where we have reduced our operating costs by 40percent over the last four years.

“Furthermore, some upside potential nearby remains to be developed and we are studying in particular the Preowei discovery tieback to the Egina FPSO,” Offshore quoted Breuillac as saying.

Total expects to take an investment decision on Preowei later this year, the report added.

Egina, discovered in 2003 in 1,600 m (5,249 ft) water depth, is the second development on the oil mining lease 130 following the Akpo field, which started-up in 2009.

The other partners are the NNPC, South Atlantic Petroleum (SAPETRO), and CNOOC E&P Nigeria.

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