French energy giant TotalEnergies has unveiled a bold $6 billion (5.5 billion euros) investment plan over several years for Nigeria's oil and gas sector, emphasizing deep-water production and gas development. This move highlights TotalEnergies' continued commitment to Nigeria, a country it deems "very important," contributing 8-10% of its global production and over 18% of its global investment.
The announcement follows a meeting between TotalEnergies CEO Patrick Pouyanne and Nigerian President Bola Tinubu, resulting in a formal cooperation agreement with Nigeria's state oil firm, NNPC Ltd. The agreement features a significant element: deploying TotalEnergies' cutting-edge drone-based AUSEA technology for methane detection and measurement across various oil and gas facilities in Nigeria.
"Mr. President, we are ready to invest $6 billion in the coming years," declared Pouyanne. "We are looking extensively at more deepwater production and gas production opportunities across the terrain." He commended President Tinubu's policies and commitment to fiscal incentives and security improvements, stating, "Everything is here. We just need to conclude with the tweaks and changes necessary to unlock the outstanding potential in both oil and gas."
President Tinubu reciprocated the enthusiasm, underscoring his administration's dedication to attracting investment and fostering industry development. "We are committed to removing all cobwebs and anti-investment impediments in the oil and gas industry," he pledged. "We have a clear path that we are committed to pursuing. We are ready to work with you."
This major investment comes at a crucial time for Nigeria, Africa's largest economy and oil producer. With President Tinubu aiming to revitalize the economy through reforms, attracting foreign investment remains a top priority. Tinubu emphasized his commitment to creating a favorable investment environment, stating, "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."
However, this investment carries context within the global shift towards cleaner energy sources. Following COP 28's emphasis on moving away from traditional fossil fuels, countries like Nigeria face potential risks of reduced investment and market contraction for their oil and gas resources.
Despite this challenge, TotalEnergies maintains its dedication to environmental responsibility. Pouyanne reaffirmed the company's commitment to upholding its zero-flaring policy in Nigeria, aiming to minimize environmental impact and monetize available gas resources in line with Nigeria's Energy Transition Plan.
By focusing on deep-water exploration, gas development, and responsible environmental practices, TotalEnergies' $6 billion investment signifies a strategic alliance with Nigeria's energy future, navigating towards a sustainable and productive partnership.
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