Total Energies, a petroleum enterprise, has revealed why the company is investing billions of naira in an energy project in Angola instead of Nigeria.
Patrick Pouyanne, the Chief Executive Officer (CEO) of the company while speaking with panelists of the Africa CEO in Kigali, Rwanda shed light on why the $6 billion project was diverted to another country.
He went on to mention that the lack of coherence in policy-making choices resulted in the project being redirected from Nigeria to Angola, a nation with a more reliable policy structure.
Pouyanne asserted that despite being the most productive region in West Africa, the unpredictable policy landscape has rendered investment unviable.
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He added that TotalEnergies has not conducted oil exploration in the region for 12 years.
“Nigeria loves to open topics without closing them. You love to debate. There is always a new legislature in Nigeria about 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.
“In reality, the Niger Delta is the most prolific part of West Africa. But if you look at what happened, because of these debates, there has not been a single exploration in Nigeria for 12 years.
“It’s important to have a debate and then settle it and put a framework on the table that investors can trust.
“We have countries that have perfectly integrated policies like Angola. So, we go to Angola and announced a very large $6 billion project at the beginning of the week because there their framework is stable. So we know where we go,” Pouyanne said.
Challenges Facing Total Energies In Nigeria
Pouyanne emphasized that investment in the country is hindered by insecurity and the shortage of human capital.
According to him, investors need the assurance that their investments are protected from any risks of violence or demolition.
He also mentioned the company’s efforts in enhancing human capital by training individuals to meet the demands of the oil and gas industry.
“What are the challenges? Security comes first. For a CEO like me, the security of my people is of utmost importance. Fortunately, we have customs in the Niger Delta to deal with it.
“We also have finding talent has a difficulty. In some countries like Nigeria and Rwanda, we find it difficult to find talent. Some of them have difficulty in education. And we can contribute to that. That’s some of the things we do, training people,” he said.
Recall that Total Energies announced in December 2023 its commitment to invest up to $6 billion in the largest oil producer in Africa in the coming years.
The energy company announced its intention to focus on deep-water projects and gas production, aligning with the current trend of international oil companies (IOCs) shifting their focus from onshore to offshore operations in Nigeria.
Pouyanne had told President Bola Tinubu during a meeting in Abuja that the French company is in support of the current administration’s policies and push to resolve insecurity issues in the industry.
Nigeria accounts for 8 to 10% of TotalEnergies’ worldwide production and hosts over 18% of its total investments.
However, the corporation has encountered challenges in persuading the oil giant to maintain its focus on offshore assets, posing a problem for international oil companies due to their exposure to security risks and sabotage.
In February, it was gathered that the firm announced plans to sell its minority stake in a major Nigerian oil joint venture.
The company stated its intention to sell off its stake in Shell Petroleum Development Company of Nigeria Limited (SPDC) and is seeking to restructure its investments due to the inconsistency of oil production in the Niger Delta with its health, safety, and environmental guidelines.
