* Targets additional 32,000 bpd, plus huge gas
* As Saipem assures of best safety standards
By Codratus Godson
Egina has taken off as a huge success, Ikike is here to roll. That is what Total E&P has come to represent in Nigeria oil sector, innovative local content drive.
A section of top oil industry players gathered at Iwofe backside waters in Port Harcourt, Rivers State, where Total E&P flagged off construction job on its new 32,000 barrels per day offshore oil project known in the oil sector as Ikike. The project may gulp $500m to be delivered in 2021.
The country chair/MD of Total, Mike Sangster, who flagged off what he called first steel cutting said the epoch-making event came soon after the Egina landmark project, a top offshore platform fabricated in Nigeria at Aveon in Port Harcourt also.
Background checks indicate that Ikike oil field is located in a water depth of 20m in the Oil Mining Lease (OML) 99, approximately 20km offshore Nigeria. The OML 99 is owned by a joint venture (JV) comprising Total E&P Nigeria (40 per cent, operator) and Nigeria National Petroleum Corporation (NNPC, 60 per cent).
The JV signed the Nigerian Content Compliant Certificates (NCCCs) with Nigeria Content Development and Monitoring Board (NCDMB) in July 2019, moving the project into the tendering and execution phase. The field lies in the northern part of OML 99 and is estimated to hold 70 million barrels of oil equivalent.
Total MD, who was represented by the deputy for Port Harcourt District Guillaume Dulout (because of flight landing difficulties), said Ikike represents a template project for the company, the success of which he said should allow the launch of several other similar developments.
He said the execution strategy (basic+detailed engineering and procurement) including call for temder stages in parallel, has allowed for significant work leading to construction after only four months. He stated that most of the critical stages from engineering contract and four packages, with ongoing drilling contracts, call for tenders, will be domiciled in Nigeria.
A major milestone is the fact that the basic and detailed engineering has been successfully executed in Nigeria by NETCO, which continues to provid construction assistance. « The construction of jacket, modules, topsides, and the risers in Nigerian yards will boost local employment with 3000 direct and indirect jobs. »
Confessing that the first steel cutting (foundation laying ceremony) gave him joy, Sanster said the Ikike Development Project, coming on the heels of the Egina Project, is further commitment of the Total E&P group to Nigeria and the growth of the oil and gas industry.
On key objectives, the CEO said it would develop the Ikike reservoirs as a tie-back to the existing Amenam field with incremental production of 32000 barrels per day of oil and 3.3 Msm3 of gas per day by drilling five new wells including water injection’ capitalise on lessons learnt from previous projects (OFON, OML-58) to assure a development with srategy fit for content, maximise local content at sustainable cost, minimalsist/simplified design, economic and fast execution to first oil ; and create a template for future similar developments by Total E&P.
He revealed that the final investment decision was taken in January 2019 and that the NNPC board appoval and NCDMB-NCCC Certification were secured in June 2019, while the LOI for contracts of the four major packages was launched in August 2019. « The first steel cut that we are celebrating today marks the commencement of the construction phase (Jacket, piles, etc) are in Saipem. »
At Total, he added, safety is a core value, not just a priority. « This core value, we must share with our contractors, working hand in hand to ensure the higehst safety standard on this project. The objective of the group remains zero lost time injury and zero fatality. We must ensure our contractors share our safety values and implement same in all our pojects.
« Ikike is a testament of cooperation and working together. Though each oil and gas development project has its peculiar challenges, a key success factor is always the willingness of all parties involved to cooperate and address the challenges. Clearly, without the cooperation of all parties (DPR, NAPIMS, NCDMB), nothing would have been achieved. I must thus thank the executive secretary of the NCDMB and the group general manager, NAPIMS for their personal commitments, guidance and support. For Ikike, the drive to be a low/controlled capital expenditure project in the context of current oil prices, very few similar projects and many countractractors and yards with low activities, and remain an economic development clearly pose a profound challenge. However, ai am confident that with greater support, cooperation and working together, we will achieve our objectives.
« I express my thanks and congratulations to our project team, our contractors, and Saipem. The chairman/CEO of Total has assured the company’s strong willingness to fast track this project and to make it not only a joint NNPC-TEPENG success but a success for Nigeria. Let us all now work for the next milestone of this project. »
The project manager from Saipem as well as top officials of the DPR, NAPIMS and the Nigerian Content Board officials commended Total E&P for another sensitive step in the oil industry with local content as a centrepoint.