Tuesday, 7 May 2013

Total Egina, Mobil Erha projects will be ready by 2016 . Minister

NEWS REACHING US;;;
Nigeria’s oil production is expected  to rise by additional 350,000 barrels per day when two recently approved projects by the Nigerian units of French Total’s Egina and America Exxonmobil’s Erha North are completed before the end 2016.
Nigeria’s Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, disclosed this on Monday at the opening of the 2013 edition of the Offshore Technology Conference, OTC, holding at the Reliant Park, Houston Texas, USA.
The minister, represented by the Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mr. Andrew Yakubu, also said the two deepwater projects have a combined reserve base of over 900 million barrels of oil.
The minister, who spoke during a luncheon on West Africa Development, explained: “The Egina field is a new built Floating Production Storage and Offloading, FPSO development with over 560 million barrels oil reserve, while Erha North field is a tie-back to existing Erha Main Field FPSO built and commissioned since 2005 with a combined reserve base of over 900 million barrels of oil.
“Expectation is that both projects when completed in 2015 to 2016 timeframe will deliver additional 350 Kbopd.”
Alison-Madueke, projected that based on current industry trend, crude oil and gas production would rise to over 3 million bpd and 10 billion cubic feet, bcf/d by 2015.
She added that there are various oil and gas projects at different stages of completion in Nigeria in the conventional onshore to shallow offshore terrain, which make Nigeria, and in deed the West African region an exciting terrain over the next decade.
She noted that in view of the numerous discoveries being made by some small independents in different countries, the region now “represents one of the most exciting frontier exploration provinces in the world, and the corporate landscape is likely to look very different in a few years’ time.”
Specifically, she put Nigeria’s crude oil and condensate production at 2.4 million bpd and gas of over 8bcf, adding that with over 35 billion barrels of oil and 187 trillion cubic feet, tcf of gas, the country’s proven oil and gas reserves and production capacity are ranked 10th and 12th in the world respectively.
Economic reforms
Alison-Madueke further noted that to harness the benefits of hydrocarbon resources, governments of the West African countries, including Nigeria, have embarked on various developmental and economic projects.
In the case of Nigeria, she said effort are gono be made towards it.



  • Growth in crude oil reserves and expansion in production capacity
  • Repositioning of gas for re-industrialisation/stimulation of the economy, regional and export penetration
  • Revitalisation of existing downstream capacities and additional capacity to support energy needs; and
  • Reform of key institutions to anchor the growth aspirations of the industry.
To create an enabling environment to foster investments in this regard, she said the Federal Government has already  embarked on wide spread reforms that will ensure:




  • Transparency and accountability
  • Good governance practices and processes
  • Reinforcement of linkages between the oil and gas industry and other sectors of the Nigerian economy
  • Establishment of a framework that protects the interest of all stakeholders
  • Development of a modern petroleum law (PIB) that will govern the industry
  • Provision of adequate security through the adoption of a 5-prong approach of law enforcement, amnesty and rehabilitation, infrastructure development, economic empowerment and stimulation of investment inflow into the regions.
She concluded that in view of these development plans, Nigeria boasts of numerous opportunities for investments in the areas of gas processing/transmission, distribution/utilisation, petroleum products supply and distribution and other ancillary support services such as engineering, construction, installation, financial advisory and a host of many others.
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