Total Energies is set to make a significant investment of up to $6 billion in Nigeria, the continent’s leading oil producer. The energy powerhouse has disclosed its strategic focus on deep-water projects and gas production, reflecting the prevailing industry shift where International Oil Companies (IOCs) are increasingly emphasising offshore operations over onshore activities in Nigeria.
During a meeting in Abuja on Monday, Total Energies CEO Patrick Pouyanne expressed the company’s support for the current administration’s policies and efforts to address security challenges within the industry. Pouyanne emphasised the significant potential in both oil and gas, stating, “Everything is here. We just need to conclude with the tweaks and changes necessary to unlock the outstanding potential.”
Nigeria, contributing 8 to 10 percent of Total Energies’ global output and hosting over 18 percent of its overall investments, has faced challenges in retaining the interest of major oil companies in offshore assets due to security and vandalism concerns. Mele Kyari, the group managing director of NNPC Limited, highlighted the extensive pipeline issues in the country, with over 5,000 kilometres out of operation and a pipeline inactive for the past 22 years.
Total Energies’ decision to invest in Nigeria comes amid a broader trend of IOC exits, exemplified by Equinor’s recent sale of its interest in the Chevron-operated Agbami field. Total Energies had previously announced plans to offload its 10 percent minority stake in a joint venture holding onshore and shallow water permits in Nigeria.
The energy company also revealed a collaboration with NNPC Limited to conduct methane detection and measurement campaigns using sophisticated drone-based AUSEA technology on oil and gas assets in Nigeria. This initiative aims to review and address problematic areas, both fiscally and operationally, to incentivize gas production amidst the global transition to cleaner energy.
In response to the investment, President Bola Tinubu expressed commitment to fostering a partnership with Total Energies, stating, “The good handshake that we have is for partnership and to accelerate and incentivize gas production in pursuit of the energy transition.”
In its efforts to enhance oil production amid challenges like theft, vandalism, and aging infrastructure, Nigeria aims to achieve a formidable goal of producing 2 million barrels per day by 2024, as declared by NNPC. Total Energies’ significant investment plays a crucial role in Nigeria’s drive to rejuvenate its energy sector and actively contribute to the global energy transition.
