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Total Blames 3% Decline in Output on Nigerian Flooding

19 Feb 2013

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French oil giant, Total has reported that it lost three per cent of its global hydrocarbon production in 2012 to the flooding that ravaged many parts of the Niger Delta and the Elgin gas leak incident in the United Kingdom’s North Sea.

In its fourth quarter and full year 2012 results, which was released recently, Total also stated that its hydrocarbon production in 2012 was 2,300,000 barrels of oil equivalent per day, representing a decrease of two per cent, compared to 2011.

It attributed the loss to the UK North Sea incident and the gas leak at its Ibewa gas field in Ogba/Ndoni/Egbema Local Government Area (ONELGA) of Rivers State.

The company had shut down the Obite gas plant in Ogba/Ndoni/Egbema Local Government Area (ONELGA) of Rivers State, over gas leakage.

Located in Oil Mining Lease (OML) 58, the Obite gas plant processes non-associated gas from High Pressure (HP) gas wells and associated gas from Obagi Gas Compression and exports it to the Nigeria LNG Plant in Bonny Island.

The results showed that the company’s hydrocarbon production was 2,293,000 barrels of oil equivalent per day in the fourth quarter of 2012, representing a decrease of four per cent, compared to the fourth quarter of 2011.

The company blamed the declined on the Nigerian flooding disaster and the Elgin incident in the UK North Sea.

Global Chief Executive Officer of Total, Mr. Christophe de Margerie, said the company delivered solid performance in 2012, with net income of 12billion euros and also reinforced its strong financial position.

“The environment remains favourable upstream with Brent prices above $110 per barrel and, in the downstream, refining margins benefitted from a temporary rebound at mid-year. With safety as the priority, the group continues to progress towards its three main objectives. To successfully start- up projects on time and in budget, for the group’s profitable growth over the coming years. To rely on recently expanded exploration portfolio for more significant discoveries.

“And finally, to continue the restructuring of the downstream activities for improved profitability and resilience in an evolving market. The group has embarked on an important programme of investments and asset sales to deliver value-creating growth, all while preserving a strong balance sheet, providing shareholder returns and keeping its environment and social commitments,” he said.

Total however noted that it would spend more than 80 per cent of its organic investment budget for 2013 of $28 billion on its upstream activities.

The French major said it expected to achieve production growth targets of three per cent per year, on average, through to 2015.

Total also targets to achieve three million barrels of oil equivalent per day (boepd) by 2017.

The company has predicted that the production growth should be fueled by 2012 start ups as well as anticipated 2013 start ups in Gabon, Angola LNG, Kashagan in Kazakhstan, as well as the extension of Oil Mining Lease (OML) 58 in Nigeria.

Tags: Business, Nigeria, Featured, Total, 3% Decline, Output, Nigerian Flooding

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