TotalEnergies plans investments in Nigeria’s oil sector

• Published On: 07 November 2024 at 18:55

Patrick Pouyanne, President and CEO of TotalEnergies, has announced that the company is ready to invest billions of dollars in Nigeria's oil sector, confirming its participation in the country's ongoing oil bid round.

Pouyanne made the statement during a recent visit to the Nigerian Upstream Petroleum Regulatory Commission headquarters in Jabi, Abuja, where he met with Gbenga Komolafe, the commission's CEO.

The commitment is a significant step for TotalEnergies as it seeks to strengthen its position in Nigeria's oil and gas industry.

This announcement comes a few months after Pouyanne revealed that TotalEnergies had decided to invest $6 billion in Angola's oil sector rather than Nigeria.

Despite the earlier decision, TotalEnergies' latest pledge demonstrates the company's continued interest in Nigeria, one of Africa's largest oil producers, as the country seeks to revitalize its oil industry through new exploration and production opportunities.

According to a statement from the NUPRC, Patrick Pouyanne and Gbenga Komolafe met to discuss critical issues such as divestment, investment, and regulatory consent.

The discussions also included current initiatives, particularly the Shell Petroleum Development Company Joint Venture agreement.

The meeting focused on the current status of the transaction and its potential implications for future investment opportunities in Nigeria's upstream petroleum sector.

The CEO of TotalEnergies was reported to have expressed a strong interest in exploring additional investment opportunities in Nigeria, indicating a renewed commitment to the country's oil and gas sector.

""He informed the CCE that TotalEnergies had registered for the current bid round, demonstrating its commitment to exploring new opportunities and learning about the NUPRC's perspective on the process." The statement cited the commission's approach to contract types and the importance of partnerships within the bidding framework.

According to the NUPRC, TotalEnergies' other areas of interest include Nigeria's domestic crude oil supply obligations. The goal is to improve operational efficiencies while also aligning with the company and NUPRC's mutual goals.

"Mr Pouyanne also expressed his company's interest in the regulatory aspects of decommissioning and abandonment, which are critical components as Nigeria seeks to modernise its upstream petroleum landscape.

"The TotalEnergies CEO also commended NUPRC for the restoration of investors' confidence in the Nigerian upstream sector and promised billions of USD investment and participation in the 2024 licensing round," the regulator noted.

Komolafe emphasized the NUPRC's commitment to creating a conducive business environment for oil and gas investments in Nigeria.

He emphasized that, as an enabler under the Petroleum Industry Act, the NUPRC is actively developing new regulations to streamline operations, attract foreign investment, and simplify business processes in the country's petroleum sector.