Total Exploration and Production Nigeria Limited says it was able to start up production at the Egina oil field and save over one billion dollars at the same time.
Production at the oil field located in oil mining lease (OML) 130 kicked off on December 29, 2018.
In a statement on its website, the French oil major said the savings recorded was almost 10 percent below its initial budget.
It said savings was achieved as a result of “excellent drilling performance” with over 77 percent of man hours spent locally on the project.
“Startup has been achieved close to 10% below the initial budget, which represents more than 1 billion dollars of CAPEX savings, due in particular to excellent drilling performance where the drilling time per well has been reduced by 30%,” the statement read.
“This project has also involved a record level of local contractors. Six of the eighteen modules on the FPSO (Floating Production Storage and Offloading) unit were built and integrated locally, and 77% of hours spent on the project were worked locally.”
Also commenting on the success of the project, Arnaud Breuillac, president, exploration and production at Total, said: “Total is proud to deliver a project of this size under the initial budget and to contribute to the development of Nigeria’s oil and gas sector by generating employment as well as building industrial capability.
“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 40% over the last four years.
“Furthermore, some upside potential nearby remains to be developed and we are studying in particular Preowei discovery tie-back to the Egina FPSO.”
The first oil export from the Egina field is expected to hit the international market in February.