The Deep Offshore, Building Local Capacity

2014 was marked by three major technology-intensive projects: CLOV, brought on stream in Angola in June; Kaombo, which got under way in Angola in April; and Egina, whose development is continuing in Nigeria.

Kaombo, an Ambitious, Complex Project with Carefully Managed Costs

Kaombo is an outsize project. The challenge is to extract oil from six separate fields located in water depths of 1,400 to 1,900 meters and spread out over an area of more than 800 square kilometers, via two FPSOs* with a capacity of 115,000 barrels per day each. Without ever compromising safety, Kaombo was an opportunity to optimize the design of a major project to rein in rising costs. The project illustrates our financial discipline, tightened even before oil prices fell. After all stakeholders were consulted — the Angolan authorities and international contractors in particular — prices were adjusted and the design reworked. For example, the FPSOs will be two repurposed very large crude carriers (VLCCs). The rethink generated $4 billion in savings, while still representing 14 million hours of work for Angolan yards.

Egina, Transferring Technology and Skills

First oil from the field, which lies in 1,600 meters of water, is scheduled for late 2017 and will consolidate Nigeria’s oil potential. The 200,000-barrel-per-day project — the first on this scale since the Nigerian Oil and Gas Industry Content Development Act came into force — is stimulating the local economy, with plans for 21 million hours to be worked locally. That works out to more than 2,000 jobs a year, or around 75% of project jobs, and some 60,000 tons of equipment fabricated locally, or more than a third of the total. Six of the 18 FPSO modules will be fabricated and installed in Nigeria, requiring the unprecedented construction of a 400-meter-long jetty. Egina is also the first project for which all engineering design is being performed locally and to have the entire project management team based in Nigeria. The complex development also meets the challenge of creating local value and is striving to bring international and Nigerian companies closer together to accelerate technology transfer and training. 

CLOV, Providing Training and Creating Lasting Value

Located 140 kilometers offshore Angola in water depths ranging from 1,100 to 1,400 meters, CLOV came on stream on time and budget in June 2014, reaching its plateau production of 160,000 barrels per day three months later. Training for local teams and local content requirements were factored in from the earliest stages, with the result that more than 10 million hours were worked by local contractors. FPSO modules were fabricated and installed at the Paenal yard, with an 80% Angolan workforce. Around 100 welders were trained and certified. In addition, operator training enabled young Angolans to earn diplomas equivalent to a two-year associate’s degree. Close to 40 of them are now working on Block 17

Total's commitment to local content in Angola is manifest and clearly a critical aspect of its license to operate. While visiting the sites, frank, open discussions with operational teams also gave us insight into the complex challenges to be addressed.

Orith Azoulay, Natixis Global Market Research, following a study trip to Angola organized by Total

To find out more: > December 10, 2014

1/3 of Angola's oil production is operated by Total

* Floating production, storage and offloading vessel.