TotalEnergies CEO Patrick Pouyanne announced that the company plans to invest billions of dollars in Nigeria by actively participating in the country’s current oil bid round.
Pouyanne shared this commitment during a recent visit with Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive, Gbenga Komolafe, at the commission’s Abuja headquarters.
This pledge comes just months after TotalEnergies allocated $6 billion to projects in Angola, citing challenges with Nigeria’s regulatory landscape as a deciding factor for that decision.
According to a statement by NUPRC, the meeting addressed divestment, investment, and regulatory approval matters, including updates on the Shell Petroleum Development Company Joint Venture and its implications for Nigeria’s upstream investment landscape.
Pouyanne expressed TotalEnergies’ intent to expand in Nigeria and registered the company’s interest in the current bid round to explore new opportunities, noting the importance of understanding NUPRC’s approach to contract types and partnerships within the bid framework.
TotalEnergies also underscored its interest in Nigeria’s domestic crude supply obligations and the regulatory processes surrounding decommissioning and abandonment as the country seeks to modernize its petroleum sector.
Pouyanne praised NUPRC’s efforts to restore investor confidence and confirmed TotalEnergies’ intention to participate in Nigeria’s 2024 licensing round.
Komolafe, in turn, reaffirmed NUPRC’s commitment to fostering a conducive business environment under the Petroleum Industry Act.
He highlighted the commission’s work on regulations to streamline operations, attract foreign investment, and simplify processes within Nigeria’s petroleum sector.
Previously, Pouyanne had expressed concerns over Nigeria’s inconsistent policy landscape, attributing the decision to invest in Angola to Angola’s stable and integrated regulatory policies.
At the Africa CEO panel in Kigali, Rwanda, Pouyanne emphasized that Nigeria’s ongoing policy changes have hindered new exploration projects, with TotalEnergies refraining from exploration in Nigeria’s Niger Delta for over a decade due to the unstable policy environment.
“Nigeria opens topics without closing them, leading to constant debates and uncertainty,” Pouyanne remarked, explaining that such instability challenges investors looking for long-term, structured investments.
In contrast, he cited Angola’s stable policies as the reason behind TotalEnergies’ major project in the country.
