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Total awards $4.2bn contracts to develop Egina field

Total Starts $15bn Egina offshore Nigerian oil project

In a bid to facilitate the development of the offshore Egina field located in Oil Mining Lease (OML) 130 which is expected to come on stream in the second half of 2017, Total has awarded contracts worth $4.2 billion to Saipem and FMC Technologies, it was learnt.

Saipem has bagged an award of a $3 billion contract from the French oil company for engineering and construction work on subsea facilities for the development of the field.

The Italian contractor will carry out engineering, procurement, fabrication, installation and pre-commissioning of 52 kilometres of oil production and water injection flowlines under the deal.

It will also deliver 12 flexible jumpers, 20 kilometres of export pipelines and 80 kilometres of umbilicals, as well as mooring and offloading systems, with installation work to be carried in 2016 and 2017.

Most of the fabrication work will be carried out at the Saipem Rumuolumeni yard in Port Harcourt in line with Nigeria’s local content requirements.

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FMC Technologies, Inc. said it has received an order from Total Upstream Nigeria Ltd (TUPNI), operator of the OML 130 block, for subsea equipment for the Egina field. The award has an estimated value of $1.2 billion.

FMC Technologies’ scope of supply includes subsea trees and wellheads, manifolds, installation tooling, flowline connection systems, and associated control systems. The equipment is scheduled for delivery commencing in 2015.

Tore Halvorsen, senior vice president, subsea technologies, said in a statement on Tuesday, “FMC Technologies is pleased to provide Total with the subsea systems required to develop the Egina field. This significant project will be the largest subsea project to date in West Africa and is supported by our local content strategy as well as by recent expansions to our facilities in Lagos and Onne”.

Total had recently announced that its subsidiary, TUPNI, and co-venturers have obtained the necessary approvals from Nigerian National Petroleum Corporation (NNPC) to award the main EPC contracts for the development of the Egina field.