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French Energy Giant Totalenergies to Invest $6 Billion in Nigeria’s Energy Industry

The company disclosed that its CEO, Patrick Pouyanne engaged in discussions with Nigerian President Bola Tinubu and formalized a cooperation agreement with Nigeria’s state oil firm, NNPC Ltd.

The agreement outlines plans to conduct methane detection and measurement campaigns using TotalEnergies’ cutting-edge drone-based AUSEA technology on various oil and gas facilities in Nigeria.

According to Pouyanne Nigeria was “very important” for Total Energies, accounting for 8 to 10 per cent of the company’s worldwide total production and over 18 per cent of its global investment.

What the CEO said:
“Mr. President, we are ready to invest $6 billion in the coming years. We are looking extensively at more deepwater production and gas production opportunities across the terrain. We welcome your policies and your personal commitment to ensuring that all required fiscal incentives are provided while security issues are tackled. Everything is here,”

“We just need to conclude with the tweaks and changes necessary to unlock the outstanding potential in both oil and gas,” he stated.

President Tinubu also commended Total Energies for its years of exploration and investment in Nigeria’s oil and gas sector, citing the feat as evidence of the company’s commitment and confidence in Nigeria.

“We are committed to removing all cobwebs and anti-investment impediments in the oil and gas industry. We have a clear path that we are committed to pursuing. We are ready to work with you,” President Tinubu said.

Nigeria, Africa’s largest economy and major oil producer, has been looking to bring in more foreign investment since President Bola Ahmed Tinubu came to office in May with a series of economic reforms.

President Tinubu stressed his administration’s commitment to making the necessary efforts for industrial peace, harmony, and development.

“The moment I took over, there was a clear path that we set out to pursue, and we will ensure that Nigeria remains a top-level investment choice in the dynamics of the offshore and onshore sectors,”

“We will review troublesome areas, fiscally and otherwise, to incentivize gas production in the age of transition to cleaner energy. We are ready to make a difference as a government. The good handshake that we have is for partnership and to accelerate and incentivize gas production in pursuit of the energy transition,” he said.

Pouyanne also noted the company’s commitment to maintaining its zero-flaring position in Nigeria to both heal the environment and monetize all available gas resources in support of Nigeria’s Energy Transition Plan.

At the recently concluded COP 28, there was a pronouncement to shift away from oil and gas, the foundational fuels that have driven the global economy for decades and contributed heavily to the earth’s rapidly changing climate.

Consequently, countries like Nigeria, Libya, and Angola are exposed to the risk of reduced investment and a shrinking market for their fossil products in the long term.

Source: Africa