TotalEnergies to approve $750m gas project in Nigeria

Abdullateef Fowewe

French energy giant TotalEnergies SE could approve a $750 million gas project in Nigeria next year, potentially signaling that the country’s efforts to attract renewed investment in its hydrocarbon sector are gaining momentum.

An investment of about $500 million had earlier been approved by the French company at the beginning of the year in a joint venture with state-owned Nigerian National Petroleum Co. to develop the Ubeta onshore field.

That project with output of 300 million cubic feet per day will increase supply to the Nigerian Liquefied Natural Gas plant.

The TotalEnergies SE $750m gas project was disclosed in France by the Senior Vice President Africa, Exploration and Production at TotalEnergies, Mike Sangster.

He said, “We have another dry gas project called Ima which we hope to sanction next year for about $750 million.

“There’s still more to be done in terms of regulation, simplifying, accelerating the process, but we have appreciated some of the changes that have been made over the past year.

“They have given us now the incentive or the motivation to go ahead and renew our investments in Nigeria so that we can stop the decline and start to increase production.”

He thereby urged for further easing of local content regulations to encourage international contractors with expertise in deep-water projects to return to Nigeria, thereby stimulating competition and unlocking investments that have been stalled.