French conglomerate TotalEnergies is poised to inject $6 billion into Nigeria’s energy sector, focusing on gas and offshore ventures, as per the country’s presidency.
Nigeria, a key player in Africa’s economy and a major oil producer, has intensified efforts to attract foreign investment following President Bola Ahmed Tinubu’s assumption of office in May, introducing comprehensive economic reforms.
Challenges like pipeline theft, operational expenses, bureaucratic hurdles, and attacks have dampened onshore investment, resulting in a decline in the nation’s crude oil output.
TotalEnergies joins Shell in committing to significant investments, aligning with plans to channel $6 billion into offshore, gas, and liquefied natural gas (LNG) projects.
During discussions in the capital city of Abuja, TotalEnergies CEO Patrick Pouyanne met with President Tinubu, affirming their dedication to eliminating obstacles hindering investment in the oil and gas industry.
Pouyanne underscored Nigeria’s importance to TotalEnergies, constituting 8-10% of the company’s global production. He expressed readiness to invest $6 billion in the upcoming years, particularly emphasizing deepwater and gas production opportunities.
Stressing the country’s abundant potential in both oil and gas, Pouyanne highlighted the need for adjustments to unlock these prospects fully.
TotalEnergies stated its possession of a substantial project portfolio potentially amounting to $6 billion in forthcoming investments.
The Petroleum Industry Act, passed in 2021 after prolonged debates and delays, aims to augment foreign investment in Nigeria’s oil sector through regulatory amendments, revised royalties, and tax structures.