Total Starts $15b Egina offshore oil project in Nigeria

Total SA (FP), Europe’s third-biggest oil company, will start developing Nigeria’s offshore Egina field for $15 billion as part of a plan to boost production. First oil from the field, which is part of the OML 130 block, is expected at the end of 2017, with output reaching 200,000 barrels of oil a day, according to a statement.

A Total official said development costs will be around $15 billion. The project can be started after Total obtained the necessary approvals from Nigeria to award the main contracts, the statement showed. Total Chief Executive Officer Christophe de Margerie has said the explorer will use proceeds from asset sales to pay dividends and develop oil and gas projects rather than make acquisitions. Total is operator of Egina with a 24% interest.