TOTAL Has Invested $10bn In Nigeria Between 2013 – 2020- Sangster

Total E and P Nigeria Limited has disclosed that it has invested an approximately US$10 billion in the country between 2013 to date , but maintained further that the nation has only benefitted from less than 5% of all investments in oil and gas in Africa between 2015-2019 despite having the largest reserves.

The Oil and Gas giant stated that it also taken steps to drive down green-house gas emissions; pursuing a zero-flare principle on all new projects as is evident with EGINA, OML58 upgrade, OFON field and others.

Managing Director , Total E and P Nigeria Limited ,Mike Sangster disclosed this on Tuesday, during a management session with the Nigerian Association of Petroleum Explorationist (NAPE), conference and exhibiion held virtually.

He said “That is to say that, the USD 3bn invested in Nigerian projects which took Final Investment Decision (FID) between 2015 and 2019 represents < 5% of all oil and gas funds invested in Africa adding that “No major investment decision was taken in Deepwater Nigeria between 2015 – 2019, despite a number of available potentially viable projects.

According to him, TOTAL is keen to continue to invest in Nigeria and is willing to contribute constructively to the ongoing debate on the Petroleum Industry Bill, noting that that the company is always delighted to identify with the Nigerian Association of Petroleum Explorationists (NAPE) in the partnership of sustainable economic development of Nigeria.

Sangster stressed that Nigeria must plan and exist with the current reality of low prices and optimise its opportunities and strengths to enhance its competitiveness, pointing out that nation will no doubt need to advance in the area of innovations, strategies and best practices in the following areas of technology,
collaborating to drive down costs, diversification and pursuit of new energies.

Worried about the insecurity of pipeline facilities,he called on the government of all levels to provide the needed security of pipeline facilities across the country, in line with reduction on incidence of oil theft, thus issues of security around installations and operating environments need to be addressed holistically.

The MD opined that Nigeria is crucial to the Total Group, accounting for around 10% of its equity production.

The MD while harping on boosting oil and gas production, affirmed that “One of the main challenges facing oil and gas companies’ operations is that of pipeline vandalism and oil theft with estimated large volumes of oil stolen in the oil-producing areas across the country.,

 

In furtherance to drive his points , Sangster added that “Over the years, NAPE has made high quality contributions from the annual conferences which have positively impacted our oil & gas industry as well as the Nigerian economy. The theme of this management session- “Future of oil and gas industry in low oil price environment: Survival Strategies”- cannot be more appropriate, especially in the current global situation.

 

 

” With the help of technology, the world is now able to access oil from domains previously unimaginable. The result is an abundance of oil and gas resources around the world. The challenge now is how to deploy technology to drive down costs in order to remain competitive.

“Although we are all in business for profit, a situation that makes competition inevitable, for better cost efficiency, we need to explore ways of collaboration as partners with the same ultimate goal, to share projects and associated costs that would ordinarily overwhelm an individual player. These could be envisaged in areas such as rig clubs, seismic vessels sharing, just to mention a few. An enabling policy is inevitable for success in this regard.

 

” Undoubtedly, some measures have been put in place to end this menace, but a more concerted effort would further minimize the incidence and associated financial loss and ultimately help our industry survive in these trying times.

“Uncompetitive fiscal terms, increasing cost, unsettled deep water disputes, and upcoming deep-water lease expiry all contribute to increase the risk for investors and prevent new investments

“We welcome the efforts being made by the authorities to define a long-term framework for the oil and gas industry that provides clarity and certainty as well as attractive terms which translate to a win-win solution for the country and investors.

“This will further attract more capital investment in an ever more competitive world. A progressive, win-win PIB will no doubt be the catalyst needed for a new wave of hydrocarbon exploration and development investment in Nigeria.

However , the MD urged the government to expedite actions to develop nation’s abundant resources, before it is too late.