KEY POINTS
- TotalEnergies plans $750 million Ima gas project.
- Ubeta gas field development gets $500M investment.
- Tinubu’s reforms attract $10 billion energy investments.
French energy giant TotalEnergies plans to deepen its footprint in Nigeria’s gas industry with a $750 million investment in the Ima gas project, scheduled for approval next year.
The shallow-water dry gas initiative aims to boost Nigeria’s liquefied natural gas (LNG) output, complementing the $500 million already earmarked for the Ubeta onshore field development.
Reinforcing Nigeria’s LNG supply chain
The Ubeta project, a collaboration between TotalEnergies and the Nigerian National Petroleum Company (NNPC), seeks to enhance gas deliveries to the Nigerian Liquefied Natural Gas (NLNG) plant as reported by Guardian. This strategic partnership underscores Nigeria’s pivotal role in TotalEnergies’ African operations.
Mike Sangster, TotalEnergies’ Senior Vice President for Africa, emphasized the company’s commitment to Nigeria, citing the country’s favorable regulatory reforms as a key factor in its renewed investment strategy. He noted that policy improvements, including tax incentives introduced by President Bola Tinubu, have created a more attractive environment for energy investors.
Tinubu’s reforms drive sector growth
Since taking office in May 2023, Tinubu has prioritized revitalizing Nigeria’s oil and gas sector. His administration has introduced measures aimed at enhancing operational efficiency and attracting up to $10 billion in investments for deep-water gas exploration. Two executive orders focusing on streamlining processes have been instrumental in restoring investor confidence.
Sangster commended these reforms but advocated for additional regulatory flexibility to attract global contractors specializing in deep-water gas projects. Such measures, he argued, could stimulate healthy competition and unlock further investment potential in Nigeria’s energy landscape.
Reversing declines in production
Nigeria, Africa’s largest oil producer, has faced declining output in recent years due to infrastructure challenges and regulatory hurdles. However, TotalEnergies’ expanded investments signal a shift in confidence. The Ima and Ubeta projects are expected to contribute significantly to reversing production declines while strengthening Nigeria’s position as a key LNG supplier on the global stage.
With TotalEnergies’ commitment to invest $750 million in the Ima project, coupled with its ongoing projects, Nigeria stands to solidify its role in meeting growing global energy demands. The developments also align with the government’s broader objectives of economic diversification and energy security.
