French oil giant TotalEnergies has announced plans to invest $750 million in a Liquefied Natural Gas (LNG) project in Nigeria in 2025.
The company’s Senior Vice President for Africa, Mike Sangster, disclosed this during the France-Nigeria Business Forum in Paris on Friday.
He explained that the project, a shallow water initiative known as Ima, is aimed at boosting gas supply to TotalEnergies’ LNG facility.
Sangster emphasized that the $750 million investment would also support the revival of Nigeria’s hydrocarbon production.
“We have another dry gas project called Ima which we hope to sanction next year for about $750 million,” Sangster stated.
Earlier this year, TotalEnergies unveiled a similar initiative, the Ubeta onshore gas field, which has an output capacity of 300 million cubic feet per day of LNG.
The Ubeta project, a partnership with the Nigerian National Petroleum Corporation (NNPC) Limited, is valued at $500 million.
Incentives in Oil and Gas Sector
- Speaking further, the vice president urged a relaxation of local content regulations to encourage the return of international contractors specializing in deep-water projects. He noted that this move could stimulate competition and unlock investments currently on hold.
- However, he commended the government’s efforts in implementing certain reforms over the years.
- According to him, the incentives introduced have motivated TotalEnergies to consider further investments in Nigeria and work towards halting the decline in oil and gas production.
“There’s still more to be done in terms of regulation, simplifying, and accelerating the process, but we have appreciated some of the changes that have been made over the past year.
“However, they have given us now the incentive or the motivation to go ahead and renew our investments in Nigeria so that we can stop the decline and start to increase production,” Sangster added.
What you should know
Since assuming office in May 2023, President Bola Tinubu has taken significant steps to address the persistent challenges in Nigeria’s oil and gas sector. Among his initiatives are the signing of two executive orders this year, aimed at enhancing operational efficiency and streamlining processes in the industry.
- This ambitious goal is underpinned by a new policy framework that introduces a range of incentives, including tax breaks and regulatory reforms, designed to create a more favorable environment for investors and foster sustainable growth in the sector.
- The measures are expected to not only boost investment but also drive technological advancements and increase the country’s hydrocarbon production capacity over time.
