Total announces that the second phase of the Ofon field development in offshore Nigeria (Ofon Phase 2) has begun. Construction and installation contracts have been awarded for Ofon Phase 2, which is scheduled to come on stream in 2014.
The Ofon field is located in Oil Mining Lease (OML) 102, 65 kilometres off the Nigerian shores in a water depth of 40 metres.
Ofon Phase 2 will unlock the field’s undeveloped reserves to increase production to 90,000 barrels of oil equivalent per day from 30,000 barrels, by installing 4 new platforms: 2 production platforms, a processing platform and an accommodation platform. Most of the development is dedicated to recovering natural gas, which will be compressed and evacuated to shore.
In line with Total’s environmental stewardship commitments, Ofon Phase 2 is a major step forward in the Group’s plan to reduce its flaring of associated gas and its greenhouse gas emissions.
“In launching Ofon Phase 2, Total is increasing the pace of development of its resources in a sustainable manner,” commented Jacques Marraud des Grottes, Senior Vice President, Exploration-Production for Africa at Total. “It is a further growth driver supporting our strategy, which is primarily focused on developing deep offshore fields such as Akpo and, in the near future Usan by minimizing its greenhouse gas emissions.”
The partners in OML 102 are Total Exploration-Production Nigeria Ltd (40%, operator) and Nigerian National Petroleum Corporation (NNPC - 60%).
Total Exploration-Production in Nigeria
Total has been present in Nigeria for half a century. Its equity production averaged 300,000 barrels of oil equivalent per day in 2010. Deepwater developments are one of Total’s main growth avenues in Africa, particularly Nigeria, where the Group operates the Akpo field in OML 130. Total is also preparing to develop the Egina field in the same lease. In addition, the offshore Usan field in OML 138 is expected to be brought on stream in early 2012.
Total’s offshore production in Nigeria comes from OML 130, in which the Akpo field is located, and from OMLs 99, 100 and 102, which are operated by the Group as part of a joint venture with NNPC. The main fields in these leases are Amenam-Kpono, Ofon and Edikan.
Total’s onshore production comes from OML 58, which it also operates as part of its joint venture with NNPC. The principal assets are the Obagi oil field and the Ibewa natural gas field. A project is underway to increase the lease’s natural gas and condensate production capacity to supply the domestic market.
In addition, Total has significant equity production in Nigeria from its interests in non-operated ventures, particularly the SPDC joint venture (10%) and SNEPCO (12.5%), which includes the Bonga field. Total also has a 15% interest in NLNG, whose liquefied natural gas production capacity was increased to 21.9 million metric tons per year when Train 6 was brought on stream in late 2007.
Total deploys an assertive local content policy, with locally worked hours accounting for 60% and 90% respectively of the Usan and OML 58 projects in Nigeria. The Group is helping to build the deepwater expertise of Nigerian contractors, especially in the Niger Delta, a region that is home to more than half of Total’s Nigerian employees and most of its operations in the country.
Total launches Phase 2 development of oil field offshore Nigeria