- Total to produce 200,000 barrels per day from the newly opened Egina oilfield.
- President Muhammadu Buhari projects 2.3 million barrels per day in 2019 budget
- Global crude oil price threatens 2019 budget below $60 per barrel
Total has kicked off work at Egina oilfield in Plateau State, Nigeria, with a production capacity of 200,000 barrels per day.
In a statement on Wednesday, January 3, 2019, Total said Egina field's production represents about 10% of Nigeria’s production and officially started production December 29, 2018.
Arnaud Breuillac, President Exploration & 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.”
Reuters had earlier quoted traders that the newly producing Nigerian offshore field, Egina will load in February 2019 for the first time.
Nigerian offshore field, Egina located in Plateau State
Initially discovered in 2003, the Egina field is the second development in production on the Oil Mining Lease (OML) 130 following the Akpo field, which started-up in 2009. The Preowei field is another large discovery made on this prolific block for which an investment decision is scheduled for 2019.
Total Upstream Nigeria Limited operates OML 130 with a 24% interest, in partnership with Nigerian National Petroleum Corporation (NNPC), South Atlantic Petroleum - SAPETRO Ltd. (15%), CNOOC E&P Nigeria Limited, a wholly owned subsidiary of CNOOC Limited (45%) and Petrobras Oil and Gas BV (16%).
Brent crude oil price at $54.41 per barrel
Crude oil price is still trading below Nigeria's 2019 budget oil benchmark at $60 per barrel, putting a question to President Muhammadu Buhari's direction to nation's economy in the year. On Thursday, Brent crude oil price, an international oil market which Nigeria and other oil giants trade, dropped by 50 cents to trade at $54.41 a barrel.
Nigerian President Muhammadu Buhari projects 2.3 million barrels per day in 2019 budget
President Muhammadu Buhari during the 2019 budget presentation last December projected 2.3 million barrels oil production per day in the 2019 budget. Total Egina will add up to the production line.