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Sanctity of contracts, lower costs crucial to attracting investments – Total MD

Managing Director of Total Exploration and Production Nigeria Limited, Mr. Nicholas Terraz, yesterday, identified sanctity of contracts, lower production cost and friendly operating environment as the most important factors needed to be in put place to attract investments in the Nigerian petroleum industry.

Speaking at the ongoing Nigeria International Petroleum Summit, NIPS, in Abuja, Terraz, who was represented by Deputy Managing Director, Deepwater District of Total Exploration and Production Nigeria Limited, Mr. Musa Ahmadu-Kidaalso stated that these factors would also boost participation and add value to the petroleum industry.

He said, “Our industry’s future is one which like other realities of life, is full of uncertainties. The vicissitudes in the global geo-political terrain, technological innovations within the industry that challenge existing production templates, innovations outside the industry that the industry cannot afford to ignore and which dovetail with demands for alternative sources of energy beyond fossil fuels, concerns for the environment, and the fluctuations in the price of oil, make efficiency in the use of resources, and innovation, a sine qua non.

“Efficiency and innovation are key enablers if we have to work safer, reduce costs, make faster and better decisions, and generally increase productivity. It is, therefore, necessary that we share our best practices and experiences to enable us adapt and quickly take actions that will sustain us in the far and immediate future.” He further stated that Total’s projects in Nigeria had been industry benchmarks with regard to efficiency and innovation, especially with the Egina project.

According to him, at plateau, Egina will add 200,000 barrels of oil per day to Nigeria’s current production and this represents about 10 per cent of Nigeria’s current production. Terraz added that with Egina, Total would be operating about 23 per cent of the national production and was proud to be significant contributors in securing Nigeria’s oil and gas future.

He said, “Egina set unprecedented records of local content and capacity building. For us, Egina stands as a great testament to Total’s commitment to Nigeria and our determination to support and advance local content development. 77% of man-hours worked on the project was done locally with 60,000 tons of equipment fabricated in Nigeria by local contractors. “In addition to drilling records and other significant achievements, the Egina project achieved the integration of six locally fabricated top side modules in Lagos; a first for Nigeria and Africa.” In his own presentation, Musa Ahmadu-Kida called for collaboration among operators, especially vessel owners to move the sector forward.

Source: Vanguard