Patrick Pouyanne, President and CEO of TotalEnergies, has announced the company’s readiness to invest billions of dollars in Nigeria’s oil sector by participating in the country’s ongoing oil bid round. Pouyanne made the pledge during a visit to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) headquarters in Abuja, where he met with the commission’s Chief Executive, Gbenga Komolafe.
This commitment marks a significant shift after Pouyanne’s earlier decision to invest $6 billion in Angola’s energy projects, citing Nigeria’s unstable policy environment as the key reason for bypassing the country. In May, Pouyanne had criticized Nigeria’s inconsistent regulatory framework, stating that the country’s ongoing legislative debates and lack of clarity on the petroleum law had made investments in the Niger Delta unsustainable. He noted that there had been no oil exploration in the region for 12 years due to these issues, and praised Angola for offering a more stable investment climate.
However, during his recent meeting with Komolafe, Pouyanne emphasized TotalEnergies’ renewed interest in Nigeria, confirming that the company had registered for the current bid round. He also expressed interest in exploring other investment opportunities in the Nigerian upstream petroleum sector, particularly focusing on domestic crude oil supply obligations and regulatory issues related to decommissioning and abandonment.
The NUPRC acknowledged the meeting, highlighting that discussions covered various topics, including divestment, investment opportunities, and the regulatory consent process. The commission also addressed the status of the Shell Petroleum Development Company Joint Venture deal, its implications for future investment, and the importance of partnerships within the bidding framework.
Pouyanne commended the NUPRC for restoring investor confidence in Nigeria’s upstream sector, citing the commission’s efforts to create a more favorable business environment. He assured that TotalEnergies is committed to participating in the 2024 licensing round and has plans to invest billions in the country’s oil industry.
Komolafe, in response, emphasized the NUPRC’s role in fostering an investor-friendly atmosphere, detailing ongoing efforts to streamline operations and simplify business processes in line with the Petroleum Industry Act. He reiterated the commission’s commitment to encouraging foreign investments and ensuring that Nigeria’s petroleum sector remains competitive on the global stage.
The latest developments suggest a positive turn in TotalEnergies’ approach to Nigeria, though concerns over the country’s regulatory environment still linger, particularly after the company’s recent shift towards Angola’s more stable energy framework.
