TotalEnergies is investing $550 million to build a gas processing facility in Rivers State, enhancing both exports and domestic supply.
A source in the Nigeria National Petroleum Corporation, NNPC Limited (NNPCL)
He said the investment would include a gas processing plant and a pipeline.
The source added that an announcement of the agreement would be made this week.
This development came a few weeks after the oil company shunned Nigeria and sited the $6 billion energy projects in Angola, citing inconsistency in policymaking in the West African nation as the primary reason for this decision.
The chief executive officer of TotalEnergies, Patrick Pouyanne, said during the Africa CEO panel in Kigali, Rwanda, that despite the Niger Delta’s status as West Africa’s most productive region, the volatile policy landscape has rendered investments unsustainable.
He added that the company has not conducted oil exploration in the region for 12 years.
Pouyanne said, “Nigeria loves to open topics without closing them. You love to debate. There is always a new legislature in Nigeria for a new petroleum law. When you have such permanent debates, it’s difficult for investors looking for long-term structure to know what direction to go.
“In reality, the Niger Delta is the most prolific part of West Africa. But if you look at what happened, because of these debates, there has not been a single exploration in Nigeria for 12 years. It’s important to have a debate, then settle it and put a framework on the table that investors can trust.
“Countries like Angola have perfectly integrated policies. That’s why we announced a major $6 billion project there at the start of the week; their stable framework provides clear direction for us.”
