Oil & Energy

Egina, Pushing Nigerian Content Frontier

Published

8 years ago

July 16, 2018

This is the concluding part of a keynote address by the Deputy Managing Director, Deep Water, Total Upstream Companies in Nigeria, Mr. Ahmadu-Kida Musa, at the Nigeria Oil And Gas Conference and Exhibition (NOG) 2018, held at ICC, Abuja, July 2, 2018
Egina Project It was against the back drop of this new approach to Nigerian Content that Total took the Final Investment Decision to develop Egina in 2013, three years after the Nigerian Oil & Gas Industry Content Development Act became law. The result is that Egina became a test case for the NOGICD Act.
Egina is the latest of Total’s deep-water developments and the third project of its kind developed by Total in Nigeria, after Akpo and Usan. These projects have brought progressive increase in levels of Nigerian Content and this is well illustrated by the percentage of total project workload performed in Nigeria: from 44% for Usan, Total recorded 60% for Akpo and now 77% will be achieved for Egina just before the FPSO sails away from the SHI-MCI Yard in LADOL Island, Lagos where it is currently moored for topsides integration works.
In the coming weeks, the FPSO will sail away to Egina field, which is located in OML130, approximately 150 kilometres offshore Port Harcourt. It is the deepest offshore development carried out so far in Nigeria, in water depths of over 1,500 meters and the project is designed to produce 200,000 barrels per day of oil at plateau. In addition to the oil, the Egina field will produce gas.
Associated gas will be partly re-injected into the reservoir to maintain reservoir pressure and partly channelled to supply the domestic gas market.
Nigeria is proud that Egina has advanced Nigerian Content to new levels in many domains and I’ll mention a few of them.
Firstly, Project management: For Egina, all the Project Management teams, for both Total and the main EPC Contractors, have been based in Lagos – a first for a Nigerian FPSO project. The location of these teams in Nigeria to carry out engineering and procurement activities has generated significant employment opportunities at various skill levels ranging from office administrative staff to top level engineers and managers.
The Detailed Engineering of the Egina FPSO Topsides was executed in-country by Samsung with a consortium of Nigerian engineering companies (NETCO, DeltaAfrik and IESL), employing about 250 Nigerian engineers. Similarly, the Detailed Engineering for all the other work packages was executed in Nigeria, in association with local engineering companies like DeltaTek and Crestech.
Egina also created employment in Nigeria during the construction phase. It generated 24 direct million man-hours (77% of total project workload), which is over 3,000 persons on average during five years.
Significant training hours were also recorded on the project. The objective set with NCDMB was to train 200 engineers and technicians and Egina surpassed these targets recording over 560, 000 man-hours of human capacity development training across Egina contracts.
The project led the development of Infrastructure. A new fabrication and Integration yard has been built and it is Africa’s first FPSO integration quay. It was constructed under the FPSO package contract by SHI-MCI, within Lagos Deep Offshore Logistics Base on LADOL Island.
Today, the Egina project is proudly the first to record the fabrication and integration of FPSO topsides in Nigeria. Six of the 18 topside modules were fabricated and integrated at the SHI-MCI facility at LADOL. The Egina FPSO arrived from Korea in the last week of January for the integration of the locally fabricated modules and this integration was successfully completed in May without incident.
In addition to the new SHI-MCI integration quay,several existing yards and manufacturing sites in other parts of Nigeria were upgraded for the fabrication of various components of the Egina project in Port-Harcourt, Onne and Lagos.
Subsea Production Manifold Fabrication in Nigeria. Six numbers complex 263 metric tonnes production manifolds having six slots were done in AVEON yard.
Xmas Trees Assembly and Testing at TFMCOnne yard. For the first time, all Xmas trees were fully assembled and tested in Nigeria for a deep offshore project of this magnitude.
Buoy Fabrication and Launching. The Egina Loading buoy was fabricated in Port-Harcourt in the same yard as the Manifolds.
Overall, an impressive 60,000 tons of equipment were fabricated in Nigeria and this represents 35% of fabrication for the entire project.
This leads me to the last and final part of my address.
The Next Frontier
On Tuesday, February 13, 2018, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu and the Executive Secretary, Nigerian Content Monitoring & Development Board, Engr. SimbiWabote visited the Egina FPSO on LADOL Island.
After a tour of the unit, Engr. Wabote threw a challenge at the Industry by announcing that Total with Egina Project has set the bar for others and the next target “is to stretch the limit to get more for Nigeria. Our aspiration is that come the next seven to eight years, full integration of an FPSO must happen in Nigeria.”
This remark offers a very clear ‘hint’ as to which direction the Nigerian Oil & Gas Industry should be looking as we move past Egina. On Egina, six out of the 18 topside modules of the FPSO were fabricated in Nigeria, lifted in Nigeria and fully integrated in Nigeria.
Assembly of the Integrated Control and Safety System of the FPSO will be fully performed in-country. If this pace is sustained for the next eight years and with the right policies and investor-friendly legislation, I don’t see why the prophecy of the Executive Secretary wouldn’t come true!
With several large deep-water discoveries still to be developed, such as Bonga South West or Owowo, we know that the resources are there. All the yards that have been involved in the development of the Egina project need activity to maintain their infrastructure and the improved competency levels of their human capital.
Both government and the Industry have a critical role to play here. In the past three years, to keep the industry alive, all the operators have been focusing on reducing the cost of new deep-water projects in order to make sure that they can sanction projects and bring value at $50 per barrel.
While the operators are all trying to tighten their belt in line with the realities of the times, it is important that we put in place sustainable PSC and Gas terms as this is a fundamental requirement for continued investment in Nigeria’s deep offshore. And the development of new projects is critical to maintaining industry capacities.
As the industry moves even further offshore, the need for this know-how cannot be over-emphasised. Nigeria must move up to a level where it is able to meet the competency needs of other new entrants within the Africa sub-region and be considered as a technological hub for the region.
Nigerian Content in the Nigerian Oil & Gas Industry, through careful legislation and government policies could also have great impact in other sectors of the economy, including: information & communication technology/telecommunication agriculture, engineering and construction, manufacturing, transport and storage, power and finance, etc.
The next frontier is very broad and filled with opportunities. But it is also lined with a lot of challenges that Total believe are surmountable. Let’s take the bold steps and decisions that we all require to move into the next phase.
Again, a slogan we have always used, “Its always impossible until it is made possible”. Nigerian Content (NC) is possible.

Oil & Energy

Rivers PETROAN Elects 12-Member Executive

Published

2 days ago

May 18, 2026

The Tide

The Petroleum Products Retail Owners Association of Nigeria (PETROAN), Rivers State Branch, has elected a 12 – member executive to steer the affairs of the association for the next four years.

The executive, elected during the Annual General Meeting (AGM) of the association, at it’s secretariat in Port Harcourt, and sworn in immediately after the election, was mandated to, among other things, tackle the adulteration of petroleum products as well as address irregularities in meter readings across the state.

The newly elected executive include, Pastor Ezekiel I. Eletuo as Chairman, Kanu Addeson C. as Vice Chairman , Dr. Ejike Jonathan Nnbuihe as Secretary, Fidelis A.Inaku as Treasurer and Lady C. N. Ekejiuba as Financial Secretary.

Others are Anaenye Anthony as Publicity Secretary, Arc. Kingsley O. Anyino as Organising Secretary, Nze Peter Ezenwa as Chief Whip, and Sunny Williams as Auditor.

Other members of the executive included Chidiebere Ronel Akwara as Welfare Officer, Ibe Chimaobi C. as Legal Adviser, and Emetoh Chizoba as Assistant Secretary.

Inaugurating the new leadership, PETROAN Zonal Chairman, High Chief Sunny G. Nkpe, charged the team to build on the achievements of the outgoing executive.

He urged them to collaborate with stakeholders in the petroleum sector to ensure industry stability and address issues of multiple taxation.

Nkpe who emphasized the need for transparency, accountability, and an open-door policy in administering the union, insisted these principles remained crucial in advancing the association’s objectives and improving members’ welfare.

The zonal chairman also commended the outgoing executive for their accomplishments during their tenure and for conducting a smooth transition process.

He further described their efforts as instrumental in strengthening the union’s standing in the state.

In his acceptance speech, the new Chairman, Pastor Ezekiel I. Eletuo, thanked members for their confidence and pledged to improve on the foundations laid by the previous administration.

He promised his leadership would be guided by transparency, accountability, fairness, unity, and integrity.

Eletuo called on all members to support the new executive in its efforts to elevate the association.

Also speaking, the immediate past Chairman, of the association, Sir Chilam Francis Dimkpa, expressed appreciation to members for their support during his administration and stressed the need for them to extend the same cooperation to the new leadership.

Dimkpa highlighted key achievements of his tenure to include capacity building for members, increased union visibility through media advocacy, and the establishment of stronger ties with stakeholders, corporate organisations, and individuals.

He also acknowledged the support of the state government, the Police, the Department of State Services (DSS) and the Nigeria Security and Civil Defence Corps (NSCDC).

Stakeholders present at the event also delivered their goodwill messages.

Highlights of the event included administration of oath of office to the new executive and the presentation of certificates of return by the zonal chairman. .

By: Amadi Akujobi

Oil & Energy

FG Intensifies Efforts To Reposition Tourism Sector

Published

2 days ago

May 18, 2026

The Tide

The Federal Government has intensified efforts towards reposition Nigeria’s hospitality and tourism industry for global competitiveness, aimed at strengthening regulation, professionalism and workforce standards across the sector.

This was made known last week when the National Institute for Hospitality and Tourism (NIHOTOUR) conferred fellowships, inducted professionals and inaugurated the governing boards of the Hospitality and Tourism Sector Skills Council of Nigeria (HTSSCN) in Abuja.

The high-profile event, held at Merit House, Maitama, drew senior government officials, regulators, tourism operators, cultural institutions, hospitality investors and development partners in what stakeholders described as a major institutional shift .

Government also formally inducted registered practitioners into various professional categories while also inaugurating the Board of Trustees and Board of Directors of the HTSSCN, an employer-led platform designed to align workforce competencies with industry expectations.

Speaking at the event, the Minister of Art, Culture, Tourism and the Creative Economy, Hannatu Musa Musawa, said the initiative represented a strategic intervention to strengthen accountability, standards and institutional coordination within Nigeria’s tourism and hospitality ecosystem.

According to the minister, Nigeria’s vast cultural assets, tourism destinations and creative talents can only translate into sustainable economic value through professionalism, regulation and globally accepted operational standards.

She noted that tourism and hospitality industry remains one of the fastest-growing sectors globally, contributing significantly to employment generation, foreign exchange earnings and cultural diplomacy.

Musawa explained that NIHOTOUR Establishment Act has expanded the institute’s mandate beyond training, positioning it as a regulatory and certification authority for hospitality, tourism and travel practitioners in the country.

“No sector can attain sustainable growth without structure, standards, institutional coordination and skilled professionals,” she said, stressing the need for stronger collaboration between government agencies, operators, training institutions and private sector stakeholders.

In his keynote address, the Director-General and Chief Executive Officer of NIHOTOUR, Abisoye Fagade, described the event as a historic turning point in the formalisation of Nigeria’s tourism and hospitality industry.

Fagade said the induction of practitioners, conferment of fellowships and inauguration of the HTSSCN governing boards marked the beginning of a new era of institutional governance, professional recognition and sector-wide coordination.

“Regulation and standardisation are no longer optional; they are economic necessities if Nigeria truly intends to compete globally,” he stated.

By: Nkpemenyie Mcdominic, Lagos

Oil & Energy

Big Oil Reconsiders Previously Unattractive Destinations

Published

2 days ago

May 18, 2026

The Tide

The Middle Eastern crisis has prompted a reprioritization among international oil companies. Previously unattractive drilling destinations are suddenly looking quite attractive—even Alaska.

The oldest oil and gas producing part of the United States has for years been out of the spotlight as the industry moves to cheaper and faster-growing locations. The only news of any substance about Alaska recently was the Biden administration’s approval of the Willow project, led by ConocoPhillips, which was set to boost the state’s oil output by 160,000 barrels daily, and Australian Santos’ Pikka project, set to start commercial production this year. That was years ago. Now, Big Oil is eager to drill in Alaska.

Earlier this month, a lease sale in the National Petroleum Reserve in Alaska attracted record bids, worth a total $163 million. Among the bidders were Exxon, Shell, and Repsol, with the latter already partnering with Santos on the Pikka development. And this may be just the beginning.

Related: Saudi Aramco Looks to Raise $10 Billion from Real Estate Asset Deal

The Bureau of Land Management offered 625 tracts across about 5.5 million acres for bid in the sale, revived at the end of last year by the Trump administration. No lease sales were held in the National Petroleum Reserve in Alaska under President Biden. Yet under Trump’s One Big Beautiful Bill, there will be a total of five lease sales in Alaska over the next ten years.

“With the imminent start-up of the Pikka project on the North Slope, the reversal in the decline of oil production in the great state of Alaska is going to help put more oil in the Pacific area at an important moment,” Repsol’s head of upstream operations, Francisco Gea, said as quoted by the Financial Times. Gea called Alaska “a fantastic opportunity”. The Pikka project, which has a price tag of $4.5 billion, will produce up to 80,000 barrels daily.

It is indeed a fantastic opportunity, at the very least because it is nowhere near the Middle East and as such is a highly secure energy exploration destination. Canada is in a similar position, by the way: the head of the International Energy Agency earlier this month told an industry event Canada had a golden opportunity to step in as a secure energy supplier in a world that’s currently 14 million barrels daily short on supply because of the Middle Eastern crisis.

Security, then, is what has prompted Big Oil to return to the North—even Shell, which left in 2015 after writing off as much as $7 billion on an unsuccessful drilling campaign hampered, among other things, by strong environmentalist opposition. According to the Financial Times, the supermajor’s decision to partake in the latest Alaska lease sale was surprising for analysts.

However, according to chief executive Wael Sawan, the lease sale concerns a different part of the state. “It is a very, very, very different part of Alaska that we have gone to,” he told the Financial Times. “This is an onshore exploration opportunity in a very well-established basin that has been producing for some time… So this is not offshore Alaska where we have had the challenges in the past.”

Crude oil is not the only thing drawing the energy industry to Alaska in these times of oil and gas trouble. Gas is also a magnet—in this case, in the form of the Alaska LNG project. Interest in the Alaska LNG export project has spiked since the war in the Middle East choked 20% of global LNG supply and sent Asian buyers scrambling for expensive spot cargoes.

Glenfarne Group, the majority owner and developer of the facility, aims to sign binding offtake agreements with buyers soon and advance final investment decisions to later in 2026 and early 2027, company executives told media earlier this year on the sidelines of an energy conference in Tokyo.

“There’s a real interest, particularly with everything happening in the Middle East right now. Everyone would like to get those (preliminary deals) turned into long-term agreements,” Adam Prestidge, president of Glenfarne Alaska LNG, told Reuters in March.

Alaska LNG is designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific. An 800-mile pipeline is planned to transport the gas from the production centers in the North Slope to south-central Alaska for exports. In addition, multiple gas interconnection points will ensure meeting in-state gas demand.

The latest Alaska developments show clearly how the Middle East war has put energy security back in the spotlight, making previously challenging locations desirable again. With an estimated 1 billion barrels of oil supply wiped out of markets since the war began, according to Aramco’s Amin Nasser, alternative supply sources have become urgently needed, and not just for the short term. Even if the Strait of Hormuz reopens soon—which at the moment seems unlikely—energy security will in all probability remain a top priority both for energy producers and for consumers.

By Irina Slav for Oilprice.com