Total Splashes More Cash on Egina. Awards Saipem $3Bln Contract
French oil giant Total is on a cash spending spree. Italy’s Saipem has revealed it has been awarded the contract for subsea development of the Total-operated Egina field in Nigeria, in a water depth up to 1,700 meters. The value of the contract is estimated at $3 bln.
Total’s Nigerian subsidiary, Total Upstream Nigeria Ltd, awarded Saipem an EPCI contract for the subsea development of the Egina field, situated in the Oil Mining Lease 130, roughly 100 kilometers off the Nigerian coast south of Port Harcourt. The scope of work includes engineering, procurement, fabrication, installation and pre-commissioning of 52 kilometers of oil production and water injection flow lines, flexible jumpers, 20 kilometers of gas export pipelines, 80 kilometers of umbilicals. Saipem will also supply mooring and offloading systems.
The marine activities will be performed throughout 2016, continuing to the second quarter of 2017.
Total, which operates the Egina offshore field, has already ordered the $3bln FPSO for the project this month. It will be the largest vessel of its kind in the world. The FPSO will be built by South Korea’s Samsung.
Also, Total yesterday placed an order for subsea equipment worth $1.2 billion for the field development. The equipment will be delivered by FMC Technologies.
The Egina field development plan calls for 44 wells connected to a 330 meter-long floating production, storage and offloading (FPSO) vessel with a storage capacity of 2.3 million barrels. The design of the FPSO includes capacity for future developments of nearby discoveries. First oil is expected end-2017, with output reaching 200,000 barrels of oil per day at plateau.
Total has a 24% interest alongside the OML 130 partners: NNPC (Nigerian National Petroleum Corporation), SAPETRO (South Atlantic Petroleum) of Nigeria, CNOOC Limited of China and Petrobras of Brazil.