TotalEnergies commits $6 billion investment in Nigeria’s energy sector

The Nigerian presidency has announced that French energy giant TotalEnergies plans to invest US$6 billion (around €5.5 billion) in the country's gas and offshore industry over the coming years. 

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FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen at the company's headquarters skyscraper in the financial and business district of La Defense, near Paris, France September 14, 2023. REUTERS/Gonzalo Fuentes/File Photo

The promise was made during a meeting between TotalEnergies chief executive Patrick Pouyanné and Nigerian head of state Bola Ahmed Tinubu, held Monday in the nation’s capital Abuja. Pouyanné especially highlighted the company’s willingness to develop deepwater and gas contacts, according to Africanews.

A presidential statement said Pouyanné stated, “We are ready to invest $6 billion over the next few years. We are looking in depth at more opportunities for deepwater and gas production”.

Stressing the role Nigeria plays for TotalEnergies, Pouyanné said that oil production from there represents 8% to 10% of total group output. “Everything is in place. We just need to finalise the adjustments and changes needed to unlock the exceptional potential in oil and gas”, he added.

In reply, President Bola Ahmed Tinubu expressed satisfaction that the government is striving to eliminate restrictions in oil and gas production. The Nigerian president said, “we are ready to work with you.”

TotalEnergies’ substantial portfolio of projects with a potential investment of $6 billion in the coming years alligns with similar initiatives taken by British oil and gas giant Shell, which only recently committed to investing US $ 6 billion into offshore, natural gas and liquefied natural gas (LNG) projects in Nigeria.

Nigeria is a member of OPEC and produces oil, but since President Tinubu took office in May several economic measures have been taken to encourage foreign investment. In 2021 the Petroleum Industry Bill was passed, with reforms of regulations governing foreign investment in oil operations and a relaxation of royalties and taxes to encourage more overseas interest.

Nigeria, plagued with problems such as pipeline thefts and attacks to mention just a few, has worn down over the years. The resulting high operating costs together with government bureaucracy have increased company headaches while oil production is falling by the day.

These latest commitments by major players herald new enthusiasm and opportunities for the country’s energy future.

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