TotalEnergies, a global oil and gas company, has shown its commitment to developing its host communities in Nigeria by fully funding five trusts with $15 million.
The trusts, known as Host Communities Development Trusts (HCDTs), are part of the new Petroleum Industry Act (PIA) that aims to ensure the participation and benefit of the communities where oil and gas operations occur.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed that TotalEnergies was the first among the International Oil Companies (IOCs) operating in Nigeria to achieve this milestone.
Engr. Gbenga Komolafe, the Chief Executive of NUPRC, praised TotalEnergies for its compliance and collaboration during a meeting with Mathieu Bouyer, the Managing Director of TotalEnergies, on Monday, October 30.
The meeting also discussed decommissioning and abandonment funds and future planned projects in their area’s operations.
Engr. Komolafe expressed satisfaction with TotalEnergies for consistently following operational guidelines within the Nigerian Oil and Gas fields.
He also highlighted TotalEnergies’ significant achievement of producing three billion barrels during its six decades of operations in Nigeria.
In addition, he acknowledged TotalEnergies’ efforts in complying with clean operation regulations, such as reducing gas flaring and decarbonizing its activities.
TotalEnergies is notably recognized for its gas flare reduction project on OML 100, marking another pioneering achievement in the industry.
The Commission is actively working on its policy to open up business opportunities in the Upstream sector through automated regulatory processes, focusing on reducing the unit cost of production per barrel.
Engr. Komolafe also commended TotalEnergies for being the first company to convert under the PIA conversion provision.
In response, TotalEnergies’ Managing Director, Mathieu Bouyer, expressed their readiness to collaborate with the Commission and expand their investments while maintaining strict compliance with the law.
This demonstrates their commitment to furthering their positive contributions to the Nigerian Oil and Gas industry.
The PIA, signed into law by President Bola Ahmed Tinubu in August 2023, is expected to transform the sector and attract more investments.
The Act also provides for a 30% allocation of profits from oil and gas production to a Frontier Exploration Fund, which will be used to explore new areas for oil and gas resources.
Heineken Lokpobiri, the Minister of State for Petroleum Resources, has assured TotalEnergies of a commitment to ensure the security and stability necessary for their oil production projects.
He conveyed this promise during a meeting with TotalEnergies’ representatives, emphasizing the Tinubu administration’s dedication to sustaining a secure, regulated, and fiscally enabling environment.
The goal is to facilitate the company’s projects, aiding in increasing oil production within the country.
TotalEnergies is one of the leading IOCs in Nigeria, with operations spanning exploration, production, refining, distribution, and renewable energy.
The company has been operating in Nigeria since 1962 and has invested over $10 billion in various projects.
TotalEnergies has also been involved in several corporate social responsibility initiatives, such as supporting education, health, agriculture, and women empowerment.
The company’s full funding of its host communities’ trusts is another testament to its vision of becoming a responsible energy major that respects human rights and environmental standards.
Source: Nairametrics
