Nigeria’s offshore oil and gas sector has long been a critical player in the global energy landscape. With the discovery and development of ultra-deep offshore fields, the country is venturing into some of the most complex and expensive energy projects worldwide. These ventures, including the Egina Project, which lies off the coast of Nigeria, demand precise contract negotiation and bid evaluation to ensure success. As a Contracts and Procurement Specialist for TotalEnergies on the Egina Project, Cynthia Onukwulu played a key role in steering the development of this landmark project, highlighting the importance of strategic procurement and contract management in Nigeria’s energy future.

Upstream ultra-deepwater oil and gas projects are known for their complexity and scale, and Nigeria’s Egina Project, with an investment of $16 billion, is no exception. Contract negotiation is crucial in securing favorable terms that balance technical challenges with financial considerations, while mitigating risks.

Onukwulu explains, “The Egina Project required sophisticated contract negotiations that addressed not only cost and schedule but also ensured operational safety, environmental sustainability, and risk management. The nature of deepwater projects, with their reliance on advanced technologies and high-risk environments, makes these negotiations pivotal to the success of the entire venture.”

For Onukwulu, contract negotiation involved crafting agreements that were not only aligned with TotalEnergies’ goals but also ensured compliance with Nigeria’s local content regulations. This became a significant aspect of the procurement strategy, as it helped foster local industry participation while ensuring that international expertise could be integrated into the project.

Bid evaluation is a cornerstone of ensuring that only the most qualified contractors and suppliers are selected. For the Egina Project, TotalEnergies faced the challenge of evaluating and selecting the best contractors from a global pool, with bids often exceeding millions of dollars. Onukwulu’s work in optimizing bid evaluation processes for EPC contracts (Engineering, Procurement, and Construction) exceeding $10 million was integral to the project’s success. She led efforts to streamline the process, ensuring transparency, cost-effectiveness, and compliance with technical specifications.

“One of my key contributions was implementing a more structured approach to bid evaluation,” Onukwulu says. “We focused on not just the financial offer but also the bidders’ experience with ultra-deepwater projects, their track record in safety, and their capacity to meet stringent environmental and local content requirements. This was essential to avoiding delays and keeping the project within budget.”

Onukwulu’s team also sourced and negotiated contracts with international suppliers for critical Deepwater field equipment, ensuring optimal pricing and delivery terms. This was particularly challenging due to the high demand for specialized equipment in the industry, which requires coordination across various time zones and regions. By leveraging relationships with global suppliers, Onukwulu was able to secure favorable terms, ensuring the timely delivery of key components necessary for Egina’s success.

Another significant contribution Onukwulu made to the Egina Project was managing contract modifications through Change Orders (COs). Offshore projects, particularly at the scale of Egina, often experience unforeseen circumstances that require adjustments to the original contract terms. Onukwulu’s expertise ensured that these modifications were carried out smoothly and in line with contractual provisions, thus minimizing any potential negative impacts on the project’s budget and timeline.

“Managing Change Orders was a vital part of ensuring that the project stayed on track despite the inevitable challenges we faced,” she notes. “We were able to keep the project moving forward while maintaining transparency and clear communication with all stakeholders.”

To improve operational efficiency, Onukwulu played a pivotal role in streamlining the procurement process for the Egina Project by implementing e-sourcing tools such as SAP MM and Ariba. This digital transformation reduced procurement lead times by 20%, allowing for faster and more accurate sourcing of materials, equipment, and services. The adoption of these tools ensured better collaboration with suppliers, more efficient handling of procurement requests, and the ability to manage costs effectively, all of which were critical to keeping the Egina Project on schedule and within budget.

“By leveraging these advanced procurement platforms, we were able to drastically reduce the time it took to evaluate and process purchase orders,” Onukwulu explains. “This enhanced efficiency translated into cost savings and allowed us to meet deadlines even in the face of challenges.”
Another vital contribution Onukwulu made was the creation and implementation of an Archiving/Documentation system specifically designed for the Egina Project. In large-scale projects like Egina, maintaining clear, accurate records is essential for effective project management, ensuring that every document is properly archived for future reference and regulatory compliance.
Onukwulu’s systematic approach ensured that all contracts, communications, and changes were properly documented, minimizing potential disputes and enabling seamless project continuity.
Despite these strategic advancements, Onukwulu acknowledges the ongoing challenges of operating in Nigeria’s offshore environment. “One of the biggest challenges we faced was ensuring compliance with both local and international standards while managing the complex logistics of sourcing materials and services,” she says. The regulatory landscape in Nigeria can be complex, requiring constant coordination with governmental agencies to ensure adherence to local content laws, tax regulations, and environmental standards.

Additionally, offshore fields come with technical challenges, particularly in ultra-deepwater operations. The high depths, adverse weather conditions, and need for specialized technology make the logistics of exploration and production challenging.

“We also faced challenges in securing high-quality, specialized equipment,” Onukwulu notes. “But by working closely with international suppliers and negotiating favorable terms, we were able to mitigate these issues and keep the project on track.”

The economic benefits of Nigeria’s ultra-deepwater developments, such as the Egina Project, are substantial. The project has produced over 200,000 barrels of oil per day, making it a vital contributor to Nigeria’s energy security and foreign exchange earnings. Beyond revenue generation, the Egina Project has contributed to local capacity building by creating thousands of jobs and fostering the growth of Nigerian businesses involved in the project’s supply chain.

“Through the Egina Project, we were able to support local contractors and service providers, boosting Nigeria’s capacity to handle large-scale offshore projects,” Onukwulu explains. “This has had a long-term positive impact on the local economy and has strengthened Nigeria’s position as a global energy player.”

As Nigeria continues to explore and develop its ultra-deep offshore resources, the lessons learned from projects like Egina will be pivotal in shaping the future of the country’s energy sector. Strategic contract negotiation, efficient bid evaluation, and the integration of technology into procurement and project management will continue to be essential for the success of these complex and high-stakes projects.

“The future of Nigeria’s offshore sector depends on our ability to innovate, collaborate, and manage risks effectively,” concludes Onukwulu. “The Egina Project has proven that with the right people and the right strategies, Nigeria can continue to be a leader in ultra-deepwater exploration.”

With professionals like Onukwulu at the helm, Nigeria is poised to continue its dominance in the global energy sector while ensuring that the benefits of these major projects are felt across the country.