Big Boost for Nigeria’s Oil Industry as Oil Firm Announces Billion Dollar Investment

• The CEO of TotalEnergies said the company is ready to invest billions of dollars in Nigeria
• This is coming a few months after the CEO said he had snubbed Nigeria to invest $6bn in Angola
• According to the NUPRC, other areas of interest for TotalEnergies include Nigeria’s domestic crude oil supply obligations

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Patrick Pouyanne, the president and chief executive officer of TotalEnergies global, says the company is prepared to participate in the current oil bid round in Nigeria and invest billions of dollars there.

This was recently said by Pouyanne during a visit to Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, at the commission's headquarters in Jabi, Abuja.

A few months prior, The Punch reported that the CEO claimed that he had chosen to invest $6 billion in Angola over Nigeria.

Read also

Again, national grid collapses as US billionaire's firm offers to fix Nigeria's power issues

According to a statement from the NUPRC, the meeting addressed ongoing initiatives related to the Shell Petroleum Development Company Joint Venture deal, including its current status and potential implications for future investment opportunities in Nigeria's upstream petroleum sector. It also focused on key issues surrounding divestment, investment, and regulatory consent.

The TotalEnergies boss was said to have expressed his company’s interest in exploring additional investment opportunities in Nigeria.

“He informed the CCE that TotalEnergies has registered for the current bid round, signalling its commitment to exploring new opportunities and gaining insight into the NUPRC’s perspective on the process. These include the commission’s approach to contract types and the necessity of partnerships within the bidding framework,“ the statement noted.

Nigeria's domestic crude oil supply requirements are among the other areas of interest for TotalEnergies, according to the NUPRC. The goal is to improve operational effectiveness and match the company's and NUPRC's shared goals.

Read also

NNPCL finally shares reason for low funding for domestic gas project

“Mr Pouyanne also noted his company’s interest in the regulatory aspects of decommissioning and abandonment, crucial components as Nigeria seeks to modernise its upstream petroleum landscape.

“The TotalEnergies CEO also commended NUPRC for the restoration of investors’ confidence in the Nigerian upstream sector and promised billions of USD investment and participation in the 2024 licensing round,“ the commission added.

Komolafe emphasized the NUPRC's dedication to creating a welcoming business climate.

He emphasized that the NUPRC is creating new rules to simplify business procedures, promote foreign investments, and streamline operations in Nigeria's petroleum sector as a facilitator of business under the Petroleum Industry Act.

Why Angola over Nigeria

Pouyanne informed Aliko Dangote, the president of the Dangote Group, in May that the company was choosing to invest $6 billion in energy projects in Angola rather than Nigeria, mostly due to inconsistent policymaking in Nigeria.

Pouyanne stated at the Africa CEO panel in Kigali, Rwanda, that although the Niger Delta is the most producing region in West Africa, the unstable policy environment has made investments unsustainable. The business has not explored for oil in the region for 12 years.

Read also

Indian company to Build $4 billion steel plant in Nigeria in exchange for natural gas

“Nigeria loves to open topics without closing them. You love to debate. There is always a new legislature in Nigeria about 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 and then settle it and put a framework on the table that investors can trust.

“We have countries that have perfectly integrated policies like Angola. So, we went to Angola and announced a very large $6bn project at the beginning of the week (in May) because their framework is stable. So we know where we go,” the TotalEnergies boss said five months ago.

Read also

Good news for investors as FG shares update on Shell Oil's asset sale

New Price List Emerges in Lagos, Abuja, Others 2

Legit.ng reported that due to the complete deregulation of the oil industry, Nigerians now purchase petrol at historically high costs, with pricing differing between cities and filling stations.

The country's cost-of-living crisis has been attributed primarily to the rising price of gasoline.

In addition to the price increases, the complete deregulation also means that prices differ between cities and even depending on who owns the gas stations.

Source: Legit.ng