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“We are not leaving Nigeria; we continue to align with FG’s efforts” Bouyer pledges
Oredola Adeola
TotalEnergies E&P Nigeria Ltd. has expressed optimism amid recent reforms in Nigeria’s energy sector, including the 2021 Petroleum Industry Act and presidential initiatives offering fiscal incentives and streamlined contracting, which have led to the sanctioning of the Ubeta Project.
The company has called on the government to further reduce entry costs for exploration blocks, enhance access to unexplored and expired deepwater areas, and confirm NNPCL’s back-in rights ahead of upcoming licensing rounds
Mattheiu Bouyer, Managing Director/Chief Executive TotalEnergies E&P Nigeria Ltd. made this known while speaking on the theme “The Evolving Landscape of Nigerian Energy Sector – Challenges and Opportunities”, during the 42nd Annual International Conference and Exhibitions of Nigerian Association Petroleum Explorationist (NAPE) on Tuesday.
He further explained that the 2021 Petroleum Industry Act (PIA) has been instrumental in reshaping Nigeria’s energy landscape by offering clearer fiscal terms and stability, granting operational and financial autonomy to NNPC Limited across upstream and downstream activities, and accelerating the development of new discoveries.
The Act, according to him, also paved the way for downstream deregulation, fostering greater value and competition in the sector.
He added that recent presidential initiatives are further advancing Nigeria’s energy sector by introducing additional fiscal incentives for gas development, streamlining and expediting contract processes, and tackling challenges such as oil theft and other forms of sabotage.
The MD emphasised that TotalEnergies has reaffirmed its long-term commitment to investment in Nigeria’s energy sector affirming that TotalEnergies is in Nigeria for the long term and it is not leaving Nigeria.
While commending the Nigerian government for recent strides in the energy sector, TotalEnergies’ Managing Director highlighted key areas needing further attention to build on this success.
He suggested making entry costs and conditions for new exploration blocks more attractive, including introducing market-reflective signature bonuses and a “drill or drop” option in the exploration phase.
He also emphasized the importance of facilitating access to expired deepwater blocks through strategic industry partnerships.
On back-in rights, he recommended that the government and NNPCL confirm these terms before licensing rounds and lease awards, ideally with cash-funded back-in rights reduced to a minimal strategic holding.
Speaking on security of assets and infrastructure, Bouyer proposed developing a strategy for partial host-community ownership of energy infrastructure to enhance cooperation with the government and stakeholders in securing assets.
He further urged the Nigerian Government and relevant agencies to collaborate with other West African nations to strengthen regional efforts against threats to maritime infrastructure.
TotalEnergies MD further reaffirmed the company’s commitment to Nigeria, emphasizing its long-term presence in the country.
“We are here to stay,” the Bouyer stated, adding that it remains dedicated to working alongside the government and other stakeholders to drive the sustainable development of Nigeria.
