TotalEnergies is investing $550 million to build a gas processing facility in Rivers State, Nigeria, aimed at boosting both exports and domestic supply.
According to a source within the Nigerian National Petroleum Corporation Limited (NNPCL), the investment will encompass a gas processing plant and a pipeline. An official announcement of the agreement is expected this week.
This development follows TotalEnergies’ recent decision to invest $6 billion in energy projects in Angola, citing policy inconsistencies in Nigeria as the primary reason for diverting investments.
During the Africa CEO panel in Kigali, Rwanda, TotalEnergies’ CEO, Patrick Pouyanne, addressed the challenges of investing in Nigeria.
He highlighted the Niger Delta’s potential as West Africa’s most productive region but emphasized that the volatile policy environment has made investments unsustainable.
Pouyanne remarked, “Nigeria loves to open topics without closing them. You love to debate. There is always a new legislature in Nigeria for 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.”
He further noted that despite the Niger Delta’s prolific potential, there has been no oil exploration in the region for 12 years due to ongoing policy debates.
Pouyanne stressed the importance of establishing a stable investment framework, comparing Nigeria’s situation to Angola’s integrated and stable policies.
He stated, “Countries like Angola have perfectly integrated policies. That’s why we announced a major $6 billion project there at the start of the week; their stable framework provides clear direction for us.”
