Nigeria: Launch of OML 58 Upgrade Project
TOTAL
Total announces that its subsidiary Total E&P Nigeria Limited (TEPNG), operator
of the NNPC/TEPNG joint venture with a 40% interest, has launched the OML 58
upgrade project. Nigerian National Petroleum Corporation (NNPC) owns the
remaining 60% interest of the joint venture. OML 58 is located onshore Nigeria
(Rivers States), approximately 85 kilometres North West of Port Harcourt in the
Niger Delta.
The OML 58 Obite gas treatment plant has been on stream since December 1999. The
OML 58 upgrade is designed to increase gas production capacity from 10.6 million
cubic metres per day (370 mmscfd) at present to 15.6 million cubic metres per
day (550 mmscfd), and also increase oil and condensate output by around 15,000
barrels per day bringing the total output to 140,000 barrels of oil equivalent
per day.
This project is expected to increase production as from 2011, and will comply
with the Federal Government's 'Flare Out' regulations, improve safety and extend
the life of existing installations as well as enhancing oil recovery.
It will develop more than 280 million barrels of oil equivalent of proved and
probable reserves. A second stage of the project is under evaluation in order to
develop additional proved and probable reserves (about 230 Mboe) using these
upgraded facilities.
The objective of the project is to contribute to meet the growth of domestic
demand for gas in Nigeria in line with the Federal Government of Nigeria
expectations, as well as to supply gas to Nigeria LNG.
In line with Total's commitments, the upgrade project will contribute
significantly to Nigeria's local content policy - over 90% of the total man
hours worked on the project will be performed locally.
OML58 upgrade project is situated in an area where the NNPC/TEPNG joint venture
has already started using associated gas to provide continuous electricity to
about 19 communities since 2005. The project will permit Total to reinforce its
sustainable development policy towards local initiative programmes.
Total E&P Nigeria
Total has been operating in Nigeria for more than 50 years. Developing the
country's deep offshore resources is one of the Group's main growth drivers in
Africa, with, in particular the deep offshore Akpo field in OML 130, which it
operates. Akpo is scheduled to come on stream early 2009. Development studies
are under way for the Egina discovery, also located in OML 130. Additionally the
development of the offshore Usan field was launched early 2008 and should come
on stream in 2011.
Total's offshore operated production in Nigeria currently comes from the OML 99,
100 and 102 blocks as part of a joint venture with NNPC. The main fields are
Amenam-Kpono, Ofon and Odudu area fields.
The Group's onshore production comes from the OML 58 block, also operated by
Total as part of the joint venture with NNPC. The main fields here are Obagi,
for oil, and Ibewa, for gas.
In addition, Total has significant equity production in Nigeria from its
interests in non-operated ventures, particularly the SPDC joint venture (10%)
and SNEPCO (12.5%), which includes the Bonga field. Total also holds a 15%
interest in NLNG, where annual LNG production capacity has risen to 21.9 million
metric tons since Train 6 was brought on stream end 2007.
Total is committed to promoting local content in its activities, following the
example of the Usan project, where approximately 60% of the man hours planned
will be performed in Nigeria. The Group continues to develop the expertise of
Nigerian companies in deep offshore project-related work. This is particularly
the case in the Niger Delta region, from which more than half of Total's
Nigerian employees come and where the majority of the Group's operations in the
country are located.
Total, one of the largest oil majors in Africa, is active in terms of production
in Algeria, Libya, Nigeria, Angola, the Republic of Congo, Gabon and Cameroon.
Total is one of the world's major oil and gas groups, with activities in more
than 130 countries. Its 96,000 employees put their expertise to work in every
part of the industry - exploration and production of oil and natural gas,
refining and marketing, gas & power and trading. Total is working to keep the
world supplied with energy, both today and tomorrow. The Group is also a first
rank player in chemicals. www.total.com