* Seeks Incentivization of Gas Developments, Increase in Clean Energy Investments in Nigeria
* Targets Inclusion of 5mw Solar Energy Mix in OBITE Centre
Managing Director and Chief Executive Officer of TotalEnergies Nigeria, Mr Matthieu Bouyer has called for increased optimization of gas developments as well as more investments in Nigeria’s clean energy space, as he lamented the global imbalance in clean energy investment, with 85percent directed to advanced economies and China; while Nigeria and other emerging markets, which make up two-thirds of global population, account for only 15percent.
“Recent increases in clean energy investment come mostly from advanced economies and China, making up 85percent of the total, while other emerging market and developing economies, home to two-thirds of the global population, account for just 15percent”
– Matthieu Bouyer – NAPE 2024 (World Energy Outlook 2024)
Bouyer made this call earlier today, Tuesday, during the management session at the ongoing 42nd Annual Conference of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos, Nigeria while speaking to a roomful of stakeholders in the upstream oil and gas sector, on the topic: “The Evolving Landscape of Nigerian Energy Sector – Challenges and Opportunities”.
Represented by the Executive Director, Corporate Services, Mr Olatunji Akinwunmi, Bouyer noted “The misalignment of global clean energy investments is a major concern, given that demand for energy services in developing economies will inevitably increase in the coming years to support rising standards of living, universal access to energy and construction of modern infrastructure.
The high cost of capital and lack of affordable long-term financing are key contributors to these regional imbalances as well as impediments to increasing capital flows to emerging markets and developing economies in the future” says Bouyer.
Emphasizing that investors would always prefer stable economies with the highest return on investment, allowing for more allocation of resources, the TotalEnergies Boss applauded recent presidential initiatives which are providing additional fiscal incentives for gas development, streamline of contract processes, and also address oil theft and sabotage.
Applauding the enactment of the Petroleum Industry Act (PIA), which has been part of Nigeria’s response to the need for competitiveness within the country’s energy landscape, stimulating increased focus and openness on fiscal terms and stabilization, operational and financial autonomy to the NNPCL (upstream and downstream), and encouraging faster development of more hydrocarbon discoveries, Bouyer noted that there were still significant challenges that require more attention including:
- More attractive entry costs and conditions for new block exploration.
- Facilitation of access to unexplored and expired deepwater blocks through industry partnerships.
- Clear government and NNPC back-in rights before licensing rounds, ensuring cash-funded back-ins with minimal strategic holdings.
- Improved energy assets and infrastructure security
These concerns not only impact production but also damages the reputation of the Nigerian energy sector as a reliable investment destination.
Despite these concerns, Matthieu Bouyer however reaffirmed TotalEnergies’ long-standing commitment to Nigeria as the largest private energy investor in the country.
Bouyer, who remains a staunch believer in ‘Project Nigeria’, recounted TotalEnergies historical connections with Nigeria, citing development of major projects such as Egina, Ofon phase 2, the OML58 upgrade, and recently Ikike, which started in 2022.
“TotalEnergies is proud to have been a trusted partner in Nigeria’s Energy development space for over six decades with investments running into several billions of dollars in the last few years alone, contributing to the country’s economic development.
In addition to our continuous investments in infrastructure, capital and human development, we are also proud that since we commenced operations in Nigeria in the early sixties, we have been able to make useful inputs into several policies and initiatives aimed at developing Nigerian energy sector whenever we have the opportunity.
TotalEnergies is in Nigeria for the long term. We are not leaving Nigeria. We continue to align with efforts by the government and other stakeholders for the sustainable development of our dear country”, concluded the TotalEnergies Boss.
