Nigeria is banking on the 200,000 b/d offshore Egina project to boost its production by over 10%, as the Total-operated field is expected to come online later this year.
Nigerian oil output has stagnated in the past decade due to instability in the restive oil-rich Niger Delta and underinvestment in its oil sector along with a lack of infrastructure.
Nicolas Terraz, managing director, Total Upstream Nigeria, speaking at an industry event in Lagos on Sunday said the $16 billion deepwater project is the biggest oil and gas investment in Nigeria with the startup expected in Q4 this year.
No new big oil fields have started up in Nigeria in nearly five years which is what makes this project pivotal for Africa’s largest oil producer. Nigerian crude oil and condensate production has ranged between 1.7 million and 2 million b/d this year, still far below its capacity of 2.2 million b/d as pipeline sabotage in the Niger Delta has persisted.
This year the country’s oil ministry acknowledged that it needs to start prioritizing the approval of oil projects and review fiscal terms to develop deepwater oil fields.