Sustainable PSC terms will drive Nigeria’s deep offshore investment, says Total

Deputy Managing Director, Deep Water, Total Upstream Nigeria Ltd., Ahmadu-Kida Musa, yesterday in Abuja, mentioned the nation should put in place sustainable Production Sharing Contract (PSC), and gasoline terms to drive continued funding within the nation’s deep offshore oil and gasoline sector.

Speaking on the Nigerian Content Seminar, as a part of the continuing Nigeria Oil and Gas Conference & Exhibition (NOG), Musa revealed famous that six out of the 18 topside modules of the Egina FPSO have been fabricated, lifted and absolutely built-in in-country.

He additionally famous that sustaining such efforts can engender constructing a full EPSO within the subsequent eight years offered Nigeria had the correct insurance policies and investor-friendly legal guidelines.

As said by him, with some giant deepwater discoveries resembling Bonga South West or Owowo, nonetheless to be developed in Nigeria, sustainable PSC and Gas terms are crucial, as elementary requirement for the expansion of the nation’s deep offshore.

Musa also stated that beneficial terms would improve efforts, as non-public operators are targeted on lowering the price of new deepwater tasks to make sure their sustenance and produce worth at $50 per barrel.

The DMD, who mentioned the event of recent tasks was crucial to sustaining trade capacities, mentioned: “As the trade strikes even additional offshore, the necessity for this know-how can’t be over-emphasised.

Nigeria should transfer as much as a degree the place it is ready to meet the competency wants of different new entrants inside the Africa sub-region and be thought of as a technological hub for the area.

“Nigerian Content within the Nigerian Oil & Gas Industry, by cautious laws and authorities insurance policies may even have nice influence in different sectors of the financial system, together with: Information & Communication Technology/Telecommunication, agriculture, engineering and building, manufacturing, transport and storage, energy, finance, and many others.

“The next frontier is very broad and filled with opportunities. But it is also lined with a lot of challenges that I believe are surmountable. Let’s take the bold steps and decisions that we all require to move into the next phase.”

Musa mentioned the Egina FPSO, at present in Lagos, would within the coming weeks, sail away to Egina subject, which is positioned in oil mining lease, OML 130, roughly 150 kilometres offshore Port Harcourt.

“It is the deepest offshore improvement carried out up to now in Nigeria, in water depths of over 1,500 meters and the undertaking is designed to supply 200,000 barrels per day of oil at plateau.

In addition to the oil, the Egina subject will produce gasoline. Associated gasoline will be partly re-injected into the reservoir to take care of reservoir strain, and partly channelled to produce the home gasoline market,” he additionally mentioned.

Musa mentioned driving native content material in Nigeria has had multiplier results, particularly within the areas of income retention, job creation, talent improvement and others.

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