Mr. Matthieu Bouyer. Managing Director/Chief Executive, of TotalEnergies E&P Nigeria Ltd.
…Company is developing major projects such as Egina
-Felix Douglas
“TotalEnergies is proud to have been a trusted partner in Nigerian Energy development space for over six decades with investments running into several billions of dollars in the last few years alone, contributing the economic development of Nigeria.”
These were the words of the Managing Director/Chief Executive, of TotalEnergies E&P Nigeria Ltd, Mr. Matthieu Bouyer.
Bouyer made this known at the Management Session of the 42nd Nigerian Association of Petroleum Explorationist (NAPE) on the theme: “The Evolving Landscape of Nigerian Energy Sector – Challenges and Opportunities,” held in Lagos.
“In addition to our continuous investments in infrastructure, capital and human development, we are also proud that since we commenced operations in Nigeria in the early sixties, we have been able to make useful inputs into several policies and initiatives aimed at developing Nigerian energy sector whenever we have the opportunity. We thank NAPE for continuously providing the platform for stakeholders in the energy sector for useful contributions to critical issues affecting this industry,” Bouyer added.
According to the EIA in its 2024 World Energy Outlook, “Recent increases in clean energy investment come mostly from advanced economies and China, making up 85% of the total, while other emerging market and developing economies, home to two-thirds of the global population, account for just 15%. This misalignment is a major concern, given that demand for energy services in developing economies will inevitably increase in the coming years to support rising standards of living, universal access to energy and construction of modern infrastructure. The high cost of capital and lack of affordable long-term financing are a key contributor to these regional imbalances and an impediment to increasing capital flows to emerging market and developing economies in the future”
Bouyer pointed out that investors allocate more resources to countries with the highest return on investment; stable economies.
He said Nigeria is responding to the need for competitiveness with progressive changes in the Nigerian energy landscape in recent years such as: enactment of Petroleum Industry Act in 2021 (PIA) which provides better clarity on fiscal terms and stabilization, grants operational and financial autonomy to the NNPCL and encourage faster development of discoveries.
The country provides for the deregulation of the downstream sector for enhanced value and competition.
Recent presidential initiatives include provision of additional fiscal incentives for gas development, shorten and streamline contractual process with confronting oil thefts and other forms of sabotage.
Areas requiring additional efforts
More attractive entry cost and conditions for exploration in new blocks.
This provides market reflective signature bonus, consider introducing “drill or drop” window in exploration phase and access to expired Deepwater Blocks
Facilitate entry into unexplored and expired deepwater blocks through strategic partnership with the industry.
Government / NNPCL should confirm back-in terms prior to licensing round and lease award. Back-in right should be cash-funded and reduced to a minimum strategic holding.
Security of Assets & Infrastructure:
Bouyer advised Nigeria to develop a robust strategy for host communities’ part ownership of energy infrastructure which will serve as motivation to cooperate more with government and other stake holders on asset security.
Government to work with other nations in West Africa to develop regional synergy for combating the threats to maritime assets.
Bouyer reiterated that TotalEnergies is in Nigeria for the long term. “We are not leaving Nigeria. We continue to align with efforts by the government and other stakeholders for the sustainable development of our dear country.
As we march towards our net-zero carbon target of 2050 for TotalEnergies and 2060 for Nigeria, our projects align with the TotalEnergies strategy of providing more energy to the world with less emissions. The achievement of zero routine flare in all our upstream operations in Nigeria as well as the AUSEA methane detection technology which we now share with the NNPC Limited, demonstrates this unwavering commitment.”
Other initiatives to reduce CO2 emissions to the barest minimum include:
Power supply from the existing Obite treatment center and a future 5MW solar energy mix. Zero routine flaring in all our upstream operations in Nigeria
Over the past decade, TotalEnergies has been the largest private energy investor in the country, developing major projects such as Egina, Ofon Phase 2, the OML 58 Upgrade, and recently Ikike, which started in 2022.
The long-term commitment of the Company to Nigeria is also demonstrated by the continued exploration, evidenced by the Ntokon discovery in June 2023.
TotalEnergies is seeing positive signals in the industry with recent FG actions such as the Executive Orders, Fiscal Incentives, and Ease of Doing Business.
The TotalEnergies boss posited that one immediate result is the Ubeta project recently sanctioned by the company and its partners.
The company aligns with FG strategy for the energy industry which is why it is participating in bid round by Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
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